Pennsylvania Cleared to Move Forward With $700 Million Broadband Expansion

Pennsylvania’s Department of Community and Economic Development announced the state can proceed with more than $700 million in federal broadband funding after federal officials dropped concerns tied to the state’s prevailing wage rules. The decision removes a major obstacle to connecting roughly 130,000 homes and businesses that still lack high-speed internet access. The state now has six months to finalize contracts with grant recipients, who will have four years to complete deployments.

The delay centered on a long-running dispute over how fiber-optic cable workers are to be classified under the state’s prevailing wage law, where a minimum hourly pay is set for publicly-funded projects. Pennsylvania’s Department of Labor and Industry contended that those workers fall under the category of “electric lineman.”

Most locations will be served by fiber-optic networks, although nearly one-quarter are expected to receive satellite broadband under revised federal guidelines. State officials are also working to streamline permitting as construction moves forward, while awaiting guidance on how to use roughly $400 million in remaining broadband funds.