Stop Washington’s tax grab on Idaho’s broadband funding | Opinion

Idaho boasts pristine rivers, stunning vistas, abundant gemstones — and world-famous potatoes. Yet despite our strong roots in agriculture and mining, and growth in manufacturing, health care and tourism, we rank dead last in U.S. internet speeds.

High-speed broadband is no longer a luxury, it is essential. Idaho employers compete globally, and reliable internet is critical for business, tele-health, education, jobs, infrastructure and even national security.

The $42.45 billion Broadband Equity, Access, and Deployment program offers hope, with Idaho allocated $583 million to connect unserved and underserved communities through fiber and wireless networks.

But an unintended flaw in the 2017 tax law treats these federal grants as taxable income, slashing their value by up to 21% and imposing a massive burden on providers. This effectively claws back funds Congress intended for connecting farms, schools, clinics and businesses — directly undermining rural progress.

It is nonsensical. Federal broadband grants were never supposed to be taxable. When Congress launched the National Broadband Plan and the Broadband Technology Opportunities Program, broadband grants were non-taxable. These lost resources will mean fewer wireless networks and fewer miles of fiber-optic cable laid, wages lost for employees doing this critical infrastructure work, a more challenging business climate for farmers and small businesses, and limited access to educational resources for young people. Less reliable service also means challenges for our law enforcement and first responders when they deal with wildfires or other emergencies.

Fortunately, there are signs of hope. Legislation, cosponsored by Sen. James Risch, R-Idaho, currently before the U.S. House and Senate would restore the non-taxable status of federal broadband grants. This would ensure that every federal dollar is used to build broadband and not siphoned back to Washington.

Broadband internet access is not a luxury. Today, employers across the state are competing against companies across the nation and around the world. To win, business and investments having ready access to the latest technology including high-speed wireless internet networks and fiber-optic internet service, is critical.

Reliable, high-speed internet is more crucial than ever for Idahoans to run their businesses, access telehealth, or pursue an education. Broadband internet access is critically important to jobs, infrastructure, and national security. Taxing these federal broadband grants now will undo that progress, wiping out jobs and opportunity in the very communities that need them most.

Cutting off funding will leave hospitals, schools, and law enforcement more vulnerable. We are grateful to Senator Risch for his leadership on this issue. Now, we need his colleagues in the U.S. Senate and the House of Representatives to advance S.674 / H.R. 1873. This critical legislation will ensure we fully fund the Broadband Equity, Access, and Deployment program. More importantly, it will make all the difference in the quality of life for thousands of our friends and neighbors.

Joseph Shelton is the founder and CEO of the Twin Falls-based White Cloud family of companies.