Secretary to make an analysis of the risk associated 
with the loan involved.’’. 
(d) INCREASE
IN MAXIMUM NUMBER
OF SUB-
SCRIBER LINES THAT MAY BE SERVED BY AN ELIGIBLE 
ENTITY.—Section 601(d)(3) of such Act (7 U.S.C. 
950bb(d)(3)) is amended by striking ‘‘2’’ and inserting 
‘‘10’’. 
(e) LIMITATION
ON FUNDS
TO ENTITIES WITH 
MORE THAN 2 PERCENT OF SUBSCRIBER LINES.—Sec-
tion 601(d) of such Act (7 U.S.C. 950bb(d)) is amended 
by adding at the end the following: 
‘‘(4) LIMITATION ON FUNDS TO ENTITIES WITH 
MORE THAN 2 PERCENT OF SUBSCRIBER LINES.— 
Not more than 25 percent of the loans made under 
this section in a single fiscal year may be approved 
for entities that serve more than 2 percent of the 
telephone subscriber lines in the United States.’’. 
(f) LOAN TERM NOT TO EXCEED 35 YEARS.—Sec-
tion 601(g)(2) of such Act (7 U.S.C. 950bb(g)(2)) is 
amended by striking ‘‘not to exceed the useful life of the 
assets constructed, improved, or acquired with the pro-
ceeds of the loan or extension of credit.’’ and inserting 
‘‘of such length, not exceeding 35 years, as the borrower 
may request, so long as the Secretary determines that the 
loan is adequately secured. In determining the term of a 
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loan or loan guarantee, the Secretary shall consider wheth-
er the recipient is or would be serving an area that is not 
receiving broadband services.’’ 
(g) ADEQUACY OF SECURITY.—Section 601 of such 
Act (7 U.S.C. 950bb) is amended by redesignating sub-
sections (h) through (k) as subsections (i) through (l), re-
spectively, and inserting after subsection (g) the following: 
‘‘(h) ADEQUACY OF SECURITY.—The Secretary shall 
ensure that the type, amount, and method of security used 
to secure any loan or loan guarantee provided under this 
section is commensurate to the risk involved with the loan 
or loan guarantee, particularly when the loan or loan guar-
antee is issued to a financially healthy, strong, and stable 
entity. In determining the amount and method of security, 
the Secretary shall consider reducing the security in areas 
that do not have broadband service.’’. 
(h) GENERAL REPORT ON PROGRAM.—Section 601 
of such Act (7 U.S.C. 950bb), as amended by subsection 
(g) of this section, is amended by redesignating sub-
sections (k) and (l) as subsections (l) and (m), respec-
tively, and inserting after subsection (j) the following: 
‘‘(k) GENERAL PROGRAM REPORT.—Not later than 
December 1 of each year, the Secretary shall prepare and 
submit to the Committee on Agriculture of the House of 
Representatives and the Committee on Agriculture, Nutri-
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tion, and Forestry of the Senate a report that details for 
the preceding fiscal year— 
‘‘(1) the loans made under this section; 
‘‘(2) the communities served under this section; 
‘‘(3) the speed of the broadband service offered 
by applicants for, and recipients of, loans or loan 
guarantees under this section; 
‘‘(4) the type of services offered by the appli-
cants and recipients; 
‘‘(5) the length of time to approve applications 
submitted pursuant to this section; and 
‘‘(6) the outreach efforts undertaken by the De-
partment of Agriculture to encourage persons in 
areas without broadband service to submit applica-
tions pursuant to this section.’’. 
(i) NATIONAL CENTER FOR RURAL TELECOMMUNI-
CATIONS ASSESSMENT.—Section 601 of such Act (7 
U.S.C. 950bb), as amended by subsections (g) and (h) of 
this section, is amended by redesignating subsections (l) 
and (m) as subsections (m) and (n), respectively, and in-
serting after subsection (k) the following: 
‘‘(l) NATIONAL CENTER FOR RURAL TELECOMMUNI-
CATIONS ASSESSMENT.— 
‘‘(1) ESTABLISHMENT OF CENTER.—The Sec-
retary shall designate a National Center for Rural 
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Telecommunications Assessment (in this subsection 
referred to as the ‘Center’). 
‘‘(2) CRITERIA.—The Secretary shall use the 
following criteria in making the designation: 
‘‘(A) The Center must be an entity with a 
focus on rural policy research and a minimum 
of 5 years experience in rural telecommuni-
cations research and assessment. 
‘‘(B) The Center must be capable of as-
sessing broadband services in rural areas. 
‘‘(C) The Center must have significant ex-
perience with other rural economic development 
centers and organizations in the assessment of 
rural policies and formulation of policy solu-
tions at the local, State, and Federal level. 
‘‘(3) BOARD.—The management of the Center 
shall be vested in a board of directors that is capable 
of oversight of the duties set forth in paragraph (4). 
‘‘(4) DUTIES.—The Center shall— 
‘‘(A) assess the effectiveness of programs 
provided under subsection (d) in increasing 
broadband penetration and purchase in rural 
areas, especially in those rural communities 
identified by the Secretary as having no service 
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before award of a broadband loan or loan guar-
antee under subsection (d); 
‘‘(B) develop assessments of broadband 
availability in rural areas, working with existing 
rural development centers selected by the Cen-
ter; 
‘‘(C) identify policies and initiatives at the 
local, State and Federal level that have in-
creased broadband penetration and purchase in 
rural areas; 
‘‘(D) conduct a national study of rural 
households and businesses focusing on the 
adoption of, barriers to, and utilization of 
broadband services; and 
‘‘(E) provide reports to the public on the 
activities undertaken under this section. 
‘‘(5) REPORTING REQUIREMENTS.—The Center 
shall report by December 1 of each year to the Sec-
retary its activities, the results of its research, and 
any such information the Secretary may request re-
garding the prior fiscal year. In reporting to the 
Secretary the Center shall include the following: 
‘‘(A) Assessments of the programs pro-
vided under subsection (b). 
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‘‘(B) Annual assessments on broadband 
availability in rural areas under consideration 
by the Center. 
‘‘(C) Annual assessments on the effects of 
the policy initiatives identified in paragraph 
(2)(C). 
‘‘(D) Results from the national study of 
rural households and businesses conducted 
under paragraph (4)(D). 
‘‘(6) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary to carry out this subsection not more than 
$1,000,000 for each of the fiscal years 2009 through 
2013.’’. 
(j) FUNDING.—Section 601(m) of such Act (7 U.S.C. 
950bb(l)) as so redesignated by subsections (g) through 
(i) of this section, is amended— 
(1) by striking paragraph (1); 
(2) by redesignating paragraphs (2), (3), and 
(4) as paragraphs (1), (2), and (3), respectively; 
(3) in paragraph (1)(B) (as so redesignated), 
by striking ‘‘2007’’ and inserting ‘‘2013’’; 
(4) in paragraph (2) (as so redesignated), by 
striking ‘‘2003 through 2007’’ and inserting ‘‘2009 
through 2013’’; and 
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(5) in paragraph (3) (as so redesignated), by 
adding at the end the following: 
‘‘(D) ELIGIBLE
TRIBAL
COMMUNITIES.— 
Of the amounts made available under subpara-
graph (A) for a fiscal year, 10 percent shall be 
reserved for entities serving eligible tribal com-
munities. 
‘‘(E) 
UNOBLIGATED
AMOUNTS.—Any 
amounts in the reserve established for eligible 
tribal communities for a fiscal year under sub-
paragraph (D) that are not obligated by June 
30 of the fiscal year shall be available to the 
Secretary to make loans and loan guarantees 
under this section to eligible entities in any 
State, as determined by the Secretary.’’. 
(k) EXTENSION OF AUTHORITY TO ISSUE LOANS.— 
Section 601(n) of such Act (7 U.S.C. 950bb(m)), as so 
redesignated by subsections (f) through (h) of this section, 
is amended by striking ‘‘2007’’ and inserting ‘‘2013’’. 
SEC. 403. COMMUNITY CONNECT GRANT PROGRAM. 
Title VI of the Rural Electrification Act of 1936 (7 
U.S.C. 950bb) is amended by adding at the end the fol-
lowing: 
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‘‘SEC. 602. COMMUNITY CONNECT GRANT PROGRAM. 
‘‘(a) ESTABLISHMENT.—The Secretary shall estab-
lish a grant program to be known as the ‘Community Con-
nect Grant Program’ to provide financial assistance to eli-
gible applicants to provide broadband transmission service 
that fosters economic growth and delivers enhanced edu-
cational, health care, and public safety services. 
‘‘(b) ELIGIBILITY.—To be eligible for a grant under 
this section, the applicant must— 
‘‘(1) be legally organized as an incorporated 
tribal organization, an Indian tribe, or tribal organi-
zation, as defined in subsections (b) and (c) of sec-
tion 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b(b) and (c)), 
a State or local unit of government, or other legal 
entity, including a cooperative, private corporation, 
or limited liability company organized on a for-profit 
or not-for-profit basis; 
‘‘(2) have the legal capacity and authority to 
own and operate broadband facilities as proposed in 
its application, to enter into contracts, and to other-
wise comply with applicable Federal statutes and 
regulations; or 
‘‘(3) be in an eligible rural community (as de-
fined in section 601(b)(2) of the Rural Electrifica-
tion Act of 1936). 
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‘‘(c) INELIGIBLE GRANT PURPOSES.—A grant made 
under this section may not be used— 
‘‘(1) 
to 
finance 
the 
duplication 
of 
any 
broadband transmission service provided by another 
entity; or 
‘‘(2) with respect to facilities, to provide local 
exchange telecommunications service to any person 
or entity receiving the service. 
‘‘(d) PRIORITY.—In making grants under this sec-
tion, the Secretary shall give priority to grants that will 
enhance community access to telemedicine and distance 
learning resources. 
‘‘(e) MATCHING CONTRIBUTIONS.— 
‘‘(1) IN GENERAL.—To be eligible to receive a 
grant under subsection (a), a grant applicant shall 
provide a matching contribution of at least 15 per-
cent of the grant amount requested, in funds and in- 
kind contributions in a proportion to be determined 
by the Secretary. 
‘‘(2) LIMITATIONS.— 
‘‘(A) Costs incurred by or on behalf of an 
applicant, for facilities, installed equipment, or 
other services rendered before submission of a 
completed application shall not be considered to 
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be for an eligible grant purpose or a matching 
contribution. 
‘‘(B) Any financial assistance from Federal 
sources shall not be considered to be a match-
ing contribution for purposes of this section, 
unless there is a Federal statutory exception 
specifically authorizing the Federal financial as-
sistance to be so considered. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary to carry 
out this section not more than $25,000,000 for each of 
the fiscal years 2009 through 2013.’’. 
SEC. 404. ASSISTANCE FOR RURAL PUBLIC TELEVISION 
STATIONS. 
Section 2333 of the Food, Agriculture, Conservation 
and Trade Act of 1990 (7 U.S.C. Sec. 950aaa–2) is 
amended by adding at the end the following: 
‘‘(j) DIGITAL SERVICE TRANSITION ASSISTANCE FOR 
PUBLIC TELEVISION STATIONS.—The Secretary may pro-
vide grants under this section to noncommercial education 
television broadcast stations that serve rural areas for the 
purposes of developing digital facilities, equipment, and in-
frastructure to enhance digital services to rural areas.’’. 
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SEC. 405. TELEMEDICINE AND DISTANCE LEARNING SERV-
ICES IN RURAL AREAS. 
(a) AUTHORIZATION OF APPROPRIATIONS.—Section 
2335A of the Food, Agriculture, Conservation and Trade 
Act of 1990 (7 U.S.C. 950aaa–5) is amended by striking 
‘‘2007’’ and inserting ‘‘2013’’. 
(b) CONFORMING AMENDMENT.—Section 1(b) of 
Public Law 102–551 (7 U.S.C. 950aaa note) is amended 
by striking ‘‘2007’’ and inserting ‘‘2013’’. 
SEC. 406. GUARANTEES FOR BONDS AND NOTES ISSUED 
FOR ELECTRIFICATION OR TELEPHONE PUR-
POSES. 
Section 313A(f) of the Rural Electrification Act of 
1936 (7 U.S.C. 940c–1(f)) is amended by striking ‘‘2007’’ 
and inserting ‘‘2013’’. 
SEC. 407. COMPREHENSIVE RURAL BROADBAND STRATEGY. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Agriculture shall submit 
to the President, the Committee on Agriculture of the 
House of Representatives, and the Committee on Agri-
culture, Nutrition, and Forestry of the Senate a report 
describing a comprehensive rural broadband strategy that 
includes— 
(1) recommendations— 
(A) to promote interagency coordination of 
Federal agencies in regards to policies, proce-
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