U.S. Department of Commerce pulled grant, citing doubts about whether Louisiana could accomplish its plan in the time allowed
U.S. Sen. Mary Landrieu is seeking ways Louisiana can reverse the loss of an $80 million federal grant to expand broadband Internet connections, according to a letter released by the Democratic senator's office Tuesday. Landrieu asked the U.S. Department of Commerce if the state can appeal, if the grant can be restructured or if the dollars can be sent to local government agencies instead of the state.
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View full sizeU.S. Sen. Mary Landrieu speaks June 27 during the dedication of the Joseph J. McCarthy Building for the Marine Forces Reserve Facility in Algiers. "I am interested in what remaining opportunities, if any, exist to salvage the project," Landrieu wrote to Lawrence Strickling, administrator of the National Telecommunications and Information Administration at the Commerce Department.
The grant would have provided for 900 miles of fiber optic cable that would stretch broadband to thousands of schools, libraries, health care centers and homes in 21 rural parishes that have limited access to the technology.
The Department of Commerce announced on Oct. 26 that it was pulling the grant, questioning whether Louisiana could accomplish its plan in the time allowed for spending the dollars.
The commerce department confirmed it received Landrieu's letter, but didn't immediately say Tuesday whether the state would have the ability to appeal or restructure the grant plans.
The Board of Regents applied for the grant that was awarded in March 2010. Gov. Bobby Jindal's commissioner of administration, Paul Rainwater, said the board shouldn't have applied because the government-run program would compete with private industry.
The Regents project encountered problems and delays, and Rainwater's office helped rework the grant plans to include more public/private partnerships. The revamped plans involved leasing broadband use rights from local Internet providers, instead of constructing new connections.
Then, the commerce department rescinded the grant dollars, which were part of the federal stimulus legislation known as the American Recovery and Reinvestment Act. Federal officials said it was unclear if the changed plans would be finished on time and meet the goals of the grant.
"Like you, I am extremely frustrated that the state of Louisiana could not meet the necessary deadlines to complete this important project. This award presented a rare opportunity to directly improve the everyday lives of residents in some of the most underserved and rural parts of central and northeastern Louisiana," Landrieu wrote.
A member of the Louisiana Public Service Commission called on the Jindal administration and the Board of Regents to explain Wednesday at the PSC meeting how the state lost the grant.
Melinda Deslatte of The Associated Press wrote this report.
