RIP ReConnect?

The USDA’s proposed 2027 budget includes a 19 percent reduction in discretionary spending and calls for eliminating the ReConnect Loan and Grant Program, a key funding source for rural broadband infrastructure. The budget proposes canceling $40 million in unobligated balances from prior year ReConnect funds, with the agency citing duplication with the BEAD program as justification.

However, broadband analyst Doug Dawson of CCG Consulting notes this may not be the final word, as Congress ultimately controls the budget and has historically added ReConnect funding during budget negotiations. If the program is eliminated, Dawson warns that virtually no federal broadband grant programs would remain, as BEAD efforts have also been scaled back. The USDA’s 2027 budget does still propose $200 million in federally financed bank loans for rural broadband deployment and $30 million for distance learning and telemedicine grants.

The future of federal rural broadband funding will be an important topic at Fiber Connect 2026, where CBAN’s Curtis Dean will host a fireside chat with John Greene, Chief Operating Officer of USDA Rural Development. The session is scheduled for Monday, May 18th at 3:25 PM. It is expected to shed light on the agency’s direction amid these proposed budget changes, along with a discussion of the importance of broadband in precision agriculture.