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Pennsylvania is set to advance its rural broadband expansion, with over $700 million earmarked for the project, following the resolution of a federal dispute over state labor laws. This development will bring high-speed internet to approximately 130,000 homes and businesses in rural areas that currently lack broadband access.
The funding, which had been in jeopardy due to a disagreement over worker classifications under Pennsylvania's prevailing wage law, is now cleared for use. The state's Department of Labor and Industry classified workers installing fiber-optic cables as "electric linemen," a decision contested by Verizon and the Broadband Communications Association of Pennsylvania. However, a state appeals court ruled against this challenge in March, and the federal government subsequently removed the requirement for specific wage classifications from the funding agreement.
Most of the broadband expansion will utilize fiber-optic cables, known for their speed and reliability. However, due to changes implemented by the Trump administration, nearly one-quarter of the locations will receive satellite internet, which is less costly to install but often more expensive for users and may not meet future speed demands.
Spotlight PA reports that Pennsylvania has six months to finalize contracts with companies that will execute the broadband rollout, with a four-year deadline to provide service. The state's Broadband Development Authority is collaborating with a special unit in the governor’s office to streamline permit processing for the project.
While the project moves forward, it remains uncertain how Pennsylvania will allocate approximately $400 million in leftover funds due to cost-cutting measures and reduced eligible locations. Federal officials have yet to release updated guidelines on utilizing these funds, having missed a March deadline to do so.