Section 548.10  Purpose

 

This part implements the Broadband Infrastructure Advancement Act. Investments in the State's bridges, roads, rail system, high-speed internet, and electricity are essential to the public safety, economic viability, and equity of all citizens in every part of Illinois. The persistent digital divide in Illinois is a barrier to the economic competitiveness in the economic distribution of essential public services, including health care and education. This digital divide disproportionately affects communities of color, lower-income areas, and rural areas. The purpose of the Broadband Infrastructure Advancement Act is to establish in administrative rule the Broadband Grant Programs, creating added certainty in advance of federal funding available to the State through the American Rescue Plan Act of 2021 and Infrastructure Investment and Jobs Act of 2021 (P.L. 117-58).

 

(Source:  Amended at 48 Ill. Reg. 7690, effective May 8, 2024)

 

Section 548.20  Definitions

 

"ARPA" means the American Rescue Plan Act of 2021, Section 9901, P.L. 117-2, 42 U.S.C. 802.

 

"Broadband" or "Broadband Service" means a mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up internet access service.  (See 47 CFR 8.1(b).)  This term also encompasses any service that the Federal Communications Commission finds to be providing a functional equivalent of the service described in the previous sentence or that is used to evade the protections set forth in 47 CFR 8.1.

 

"Build Illinois" means the Build Illinois Bond Fund [30 ILCS 105/5.160].

 

"DCEO" means the Department of Commerce and Economic Opportunity.

 

"GATA" means the Grant Accountability and Transparency Act [30 ILCS 708].

 

"GATA Rule" means the administrative rules of the Governor's Office of Management and Budget found at 44 Ill. Adm. Code 7000.

 

"Grantee" means any applicant for a grant award under this program whose proposal is funded by the Department.

 

"IIJA" means the Infrastructure Investment and Jobs Act, P.L. 117-58.

 

"Last Mile Infrastructure" means broadband installation that serves as the final leg connecting the broadband service provider's network to the end-user customer's on-premises telecommunications equipment.

 

"State" means the State of Illinois.

 

"Uniform Guidance" means the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 2 CFR 200.

 

(Source:  Amended at 48 Ill. Reg. 17501, effective November 20, 2024)

 

Section 548.30  Funding Sources

 

a)         American Rescue Plan Act of 2021 ("ARPA") Capital Projects Fund (P.L. 117-2).

 

b)         Build Illinois Bond Act [30 ILCS 425/4 (b)].

 

c)         The Infrastructure Investment and Jobs Act ("IIJA") Broadband Equity, Access, and Deployment (BEAD) Program (P.L. 117-58).

 

d)         Funding for grants may be provided by any source of funding as permitted by the State and the American Rescue Plan Act of 2021.

 

(Source:  Amended at 48 Ill. Reg. 7690, effective May 8, 2024)

 

Section 548.35  Program Specific Definitions

 

"Capital Improvement" means a project with a purpose to physically expand or physically improve upon infrastructure necessary for internet service delivery.

 

"Economically Distressed Area" means a census tract which meets one of the following four tests:

 

Poverty rate of at least 20%; or

 

75% or more of the children in the area are eligible to participate in the federal free lunch or reduced-price meals program; or

 

At least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program (SNAP); or

 

Average unemployment rate that is more than 120% of the national unemployment average, for a period of at least two consecutive calendar years preceding the date of the application.

 

The Department maintains a map of areas that meet these qualifications on its website.

 

"Eligible Entities" means an incorporated business or partnership; a political subdivision; a nonprofit organization; a cooperative association; or a limited liability corporation organized for the purpose of expanding broadband access. Illinois public school districts are eligible to apply but may be encouraged to leverage other available federal or education-specific funding prior to an award.

 

"Middle Mile Infrastructure" means broadband construction that links a broadband service provider's core network infrastructure to last mile infrastructure.

 

"Program" means the Connect Illinois Broadband Grant Program.

 

"Rebuild Illinois" means the Rebuild Illinois Projects Fund.

 

"Underserved Area" means an applicant designated project area of Illinois in which households, businesses, or community anchor institutions have wireline broadband access of at least 25/3 Mbps but less than 100/20 Mbps, reflected in broadband mapping utilized by DCEO for the Connect Illinois program.

 

"Unserved Area" means an applicant designated project area of Illinois in which households, businesses, or community anchor institutions lack access to wireline broadband service of at least 25/3 Mbps, reflected in broadband mapping utilized by the DCEO for the Connect Illinois program.

 

(Source:  Added at 48 Ill. Reg. 7690, effective May 8, 2024)

 

Section 548.40  Program Description

 

The Connect Illinois Broadband Grant Program represents an integral and strategic component of both the comprehensive 2019 Rebuild Illinois infrastructure program and the State’s five-year economic plan to expand economic opportunity and reduce socioeconomic gaps through equity investment. The purpose of the Connect Illinois Broadband Grant Program is to make capital improvement grants to eligible entities to achieve universal broadband access for homes, businesses, and community anchor institutions. At the same time, Connect Illinois seeks progress in digital equity and inclusion while leveraging investment in new broadband infrastructure to spur advances in use and innovation for such areas as agriculture, economic development, education, and telehealth.

 

Section 548.50  Eligible Project Activities

 

a)         The Department shall make grant awards to eligible entities as described in this Part, contingent on available funds. The grants shall be made to support one or more of the following activities as permitted by the applicable Notice of Funding Opportunity:

 

1)         Broadband Access for Illinois homes, businesses, and community anchor institutions in unserved or underserved areas.

 

2)         Broadband Innovation for economic development and related activities.

 

3)         Urban Broadband for expanded access and/or innovation in qualified Illinois cities of 75,000 residents or more.

 

b)         Allowable activities are limited to capital improvement expenses. All Connect Illinois projects must include infrastructure expansion scalable to speeds of at least 100 Mbps download and 100 Mbps upload upon deployment.

 

Section 548.60  Grantee Eligibility Requirements

 

An eligible applicant for a grant award under the Connect Illinois Grant Program shall meet the definition of an eligible entity under Section 20.  To be eligible for a grant award, an applicant shall have an active GATA registration and be qualified on the GATA Grantee Portal (https://grants.illinois.gov/portal/) at the time the application is submitted.

 

Section 548.70  Administrative Requirements

 

Grant opportunities and awards will be administered in a manner that complies with all State and federal requirements applicable to each funding opportunity, including, but not limited to GATA, the Uniform Guidance and all applicable State or federal laws or guidance (e.g., U.S. Department of the Treasury guidance at https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds).  Grant applicants and grantees shall review all application materials and grant award documents, and shall follow the requirements listed in this Section. 

 

a)         Application Process

 

1)         The Department will post one or more Notices of Funding Opportunity (NOFO) on the GATA Grantee Portal (https://grants.illinois.gov/portal/) seeking applications from eligible entities contingent upon available funds. Funding is available for one or more of the eligible project activities listed in Section 548.50. A single NOFO may seek applications for more than one type of project. Applicants shall submit their application materials by the deadlines set by the Department in the NOFO, which will be at least 30 days after the NOFO posting.

 

2)         As part of the application, applicants shall provide the following information about the proposed project:

 

A)        a description of the purpose of the grant project;

 

B)        a project dashboard summarizing key activities including a description of activities, eligible costs, communities served, technology and infrastructure metrics;

 

C)        a description of the overall project;

 

D)        a description of the broadband related problems and challenges facing the targeted communities and customers, needs and gaps, the shortcomings of existing solutions, challenges with prior attempts to solve the problem and how the project significantly solves the problem;

 

E)        a description of the project's solution to the broadband related problem including the network technology, internet services and business strategy to drive adoption;

 

F)         a description of the targeted beneficiaries of the project that addresses the location of the communities, market size, economic conditions of the service areas, and targeted customer segments, including providing information on the unserved and/or underserved areas (if applicable) that will be included within the scope of the project;

 

G)        a description of anticipated social and economic benefits that will be realized by the distinct customer segments;

 

H)        a narrative description of the organization's mission and operating history;

 

I)         a description of the capabilities, experiences, and track record of the organization and its partners to successfully implement, operate and sustain the project;

 

J)         a description of the projects service area including a map of the proposed project area;

 

K)        project impact statement including, but not limited to, the number of serviceable user segments, list of premises served, and list of interconnection points;

 

L)        a narrative description of the specific social and economic benefits of connecting the following user segments – residents, businesses, community institutions, and other internet service providers;

 

M)       whether the project is providing broadband improvements to an economically distressed area;

 

N)        if applicable, the non-state matching funds and demonstration of financial need;

 

O)        the specific activities and costs proposed for the grant;

 

P)         a requested budget and supporting justification of the costs requested;

 

Q)        evidence of community support for the project;

 

R)        a detailed narrative regarding the project readiness;

 

S)         a description of the project viability and sustainability including network capacity and scalability, and financial sustainability; and

 

T)         pricing strategy, affordability and adoption assistance.

 

3)         Applications will be accepted on an ongoing basis until the funds for the program are depleted or the application period closes, whichever comes first.

 

b)         Grant Award Selection

 

1)         Grants will be awarded to eligible entities following a merit review of the applications as required by GATA (44 Ill. Adm. 7000.350) and the applicable funding source. In evaluating applications, the Department will consider the following criteria:

 

A)        The application indicates the overall project impact including the degree to which the project will improve broadband access to premises in unserved or underserved areas;

 

B)        The applicant's demonstration of need and detailed, cost-effective budget;

 

C)        The amount of non-state matching funds;

 

D)        The level of community support for the project, including but not limited to local non-state matching funds and letters of support;

 

E)        The overall project readiness;

 

F)         The project's viability and sustainability; 

 

G)        The affordability and adoption assistance provided by the project;

 

H)        The quality of the project including open access, shared use and business strategy; and

 

I)         Any additional information to demonstrate or support the information submitted by the applicant for the proposed project.

 

2)         The Department shall give a priority to projects that include a cash match of nonstate funding – from private, federal, and/or local sources. There is no requirement for a nonstate match, however, projects will be awarded a scoring preference on a tiered basis for applications providing for a nonstate match.

 

3)         The Department will also consider the relevant geographic balance; project focus; and nonstate match.

 

c)         Grant Agreements

Any entity awarded a grant shall execute a grant agreement that sets forth the rights and responsibilities of the grantee and DCEO. The Grant Agreement shall reflect all applicable State and federal statutory and administrative requirements, including but not limited to provisions covering expenditure of grant funds and utilization of property purchased with grant funds. The Department reserves the right to suspend or terminate a grant agreement, recover grant funds received under this Part or withhold any future funding for non-compliance with the grant agreement provisions and applicable State and federal law and regulations. 

 

d)         Grant Disbursements

Disbursement of grant funds from the Department will be made in accordance with a schedule included in the grant agreement. The Department will disburse funds based on the grantee making satisfactory progress to implement grant activities.

 

e)         Grant Performance, Monitoring and Reporting Requirements

Grantees shall comply with all State laws, as well as all GATA and Department requirements, that are set forth in the grant agreement for grant performance, administration, monitoring and reporting, including monitoring any subrecipients.

 

1)         Grant performance goals and performance and expenditure reporting will be based on the specific grant project activities of each grant award and will follow GATA requirements (44 Ill. Adm. Code 7000.410), which include periodic financial and performance reports at least quarterly, or as required by the applicable funding source, and financial and performance close-out reports after the end of the grant term (see 44 Ill. Adm. Code 7000.440). The deadlines for all required reports will be set forth in the grant agreement.

 

2)         Grant audits shall be based on the standards set forth in the GATA requirements (44 Ill. Adm. Code 7000.90).

 

3)         Grantees must monitor their grant activities, and those of any subrecipients, to assure compliance with applicable State and federal requirements and to assure their performance expectations are being achieved.  The Department will monitor the activities of grantees to assure compliance with all requirements and performance expectations of the award.  Grantees shall timely submit all financial and performance reports, and shall supply, upon the Department's request, documents and information relevant to the award.  The Department may monitor activities through site visits.

 

4)         Grantees shall comply with all applicable State and federal laws, including, but not limited to, the Prevailing Wage Act [820 ILCS 130], the Illinois Works Jobs Program Act [30 ILCS 559/20], the Business Enterprise Program for Minorities, Females, and Persons with Disabilities Act [30 ILCS 575], the Employment of Illinois Workers on Public Works Act [30 ILCS 570], the Environmental Protection Act [415 ILCS 5], the Illinois Endangered Species Protection Act [520 ILCS 10], the Illinois Natural Areas Preservation Act [525 ILCS 30], the Interagency Wetland Policy Act of 1989 [20 ILCS 830], and the Illinois State Agency Historic Resources Preservation Act [20 ILCS 3420].

 

f)         Grant Extensions

Contingent upon the availability of funds and consistent with GATA as applicable, the Department may negotiate grant extensions and add funds for grant projects that were originally competitively procured and performed successfully. 

 

g)         Records Retention

Grantees shall maintain, for the period of years set forth in the GATA rules (44 Ill. Adm. Code 7000.430(a), (b)) and grant agreement, adequate books, all financial records and supporting documents, statistical records, and all other records pertinent to the Connect Illinois Broadband Grant Program. If any litigation, claim or audit is started before the expiration of the retention period, the records must be retained until all litigation, claims or audit exceptions involving the records have been resolved and final action taken. The applicable retention period will be dependent on the source of funding for the grant award. Grantees shall be responsible for ensuring that contractors and subrecipients comply with the retention requirements.

 

Section 548.80  Allowable Costs

 

Grant expenditures must comply with GATA, the Uniform Guidance and any applicable funding source, be reasonable and necessary and support one of the eligible project activities set forth in Section 548.50. Specific allowable grant costs associated with the acquisition and installation of middle mile and/or last mile infrastructure will be set forth in the applicable NOFO, based on the types of projects which are available for funding per the funding source, and will include one or more of the following:

 

a)         expenses for network design;

 

b)         expenses for project planning;

 

c)         expenses for obtaining the required construction permits;

 

d)         expenses for the facility construction including deployment of middle mile and/or last mile infrastructure;

 

e)         expenses for durable equipment; and

 

f)         expenses for installation and testing of broadband service.

 

Section 548.90  Program Specific Definitions

 

"Assistant Secretary" means the Assistant Secretary of Commerce for Communications and Information or the individual who holds any successor position.

 

"BEAD NOFO" means the Broadband Equity, Access, and Deployment ("BEAD") Program Notice of Funding Opportunity posted by the National Telecommunications and Information Administration to describe the requirements under which it will award grants for the BEAD Program.

 

"Community Anchor Institution" means an entity such as a school, library, health clinic, health center, hospital or other medical provider, public safety entity, institution of higher education, public housing organization, or community support organization that facilitates greater use of broadband service by vulnerable populations, including, low-income individuals, unemployed individuals, and aged individuals.

 

"Digital Equity" means the condition in which individuals and communities have the information technology capacity that is needed for full participation in the society and economy of the United States.

 

"Eligible Community Anchor Institution" means a community anchor institution that lacks access to Gigabit-level broadband service.

 

"Eligible Subgrantee" means an incorporated business or partnership; a political subdivision; a nonprofit organization; a cooperative association; or a limited liability corporation organized for the purpose of expanding broadband access. Illinois public school districts are eligible to apply but may be encouraged to leverage other available federal or education-specific funding prior to an award.

 

"Extremely High Cost Per Location Threshold" means cost per location above which the DCEO may decline to select a proposal if use of an alternative technology meeting the BEAD Program's technical requirements would be less expensive.

 

"Location" and "Broadband Serviceable Location" mean a business or residential location in the United States at which fixed broadband internet access service is, or can be, installed.

 

"Middle Mile Infrastructure" means:

 

any broadband infrastructure that does not connect directly to an end-user location, including a community anchor institution; and includes:

 

leased dark fiber, interoffice transport, backhaul, carrier-neutral internet exchange facilities, carrier-neutral submarine cable landing stations, undersea cables, transport connectivity to data centers, special access transport, and other similar services; and

 

wired or private wireless broadband infrastructure, including microwave capacity, radio tower access, and other services or infrastructure for a private wireless broadband network, such as towers, fiber, and microwave links.

 

"NTIA-Approved Challenge Process Dataset" means the complete list of locations and community anchor institutions within Illinois that are eligible for BEAD grant funds, indicating whether a particular location is an Unserved or Underserved Location.

 

"Open Access" refers to an arrangement in which the subgrantee offers nondiscriminatory access to and use of its network on a wholesale basis to other providers seeking to provide broadband service to end-user locations, at just and reasonable wholesale rates for the useful life of the subsidized network assets. For this purpose, "just and reasonable wholesale rates" means rates that include a discount from the provider's retail rates reflecting the costs that the subgrantee avoids by virtue of not providing retail service to the end user location (including, for example, marketing, billing, and collection-related costs).

 

"Priority Broadband Project" means a project that provides broadband service at speeds of no less than 100 megabits per second for download and 20 megabits per second for uploads, has latency less than or equal to 100 milliseconds, and can easily scale speeds over time to meet the evolving connectivity needs of households and businesses and support the deployment of 5G, successor wireless technologies, and other advanced services.

 

"Project" means an undertaking by a subgrantee to construct and deploy infrastructure for the provision of broadband service. A "project" may constitute a single unserved or underserved broadband-serviceable location, or a grouping of broadband-serviceable locations in which not less than 80% of broadband-serviceable locations served by the project are unserved locations or underserved locations.

 

"Program" means the portion of the Connect Illinois Broadband Grant Program applying federal Broadband Equity, Access, and Deployment (BEAD) dollars as a funding source.

 

"Underserved Location" means a broadband-serviceable location that is:

 

not an unserved location; and

 

that the NTIA-approved challenge process dataset shows as lacking access to broadband service offered with:

 

a speed of not less than 100 Mbps for downloads;

 

a speed of not less than 20 Mbps for uploads; and

 

latency less than or equal to 100 milliseconds.

 

"Underserved Service Project" means a project in which not less than 80% of broadband-serviceable locations served by the project are unserved locations or underserved locations. An "Underserved Service Project" may be as small as a single underserved broadband-serviceable location.

 

"Unserved Location" means a broadband-serviceable location that the NTIA-approved challenge process dataset shows as:

 

having no access to broadband service; or

 

lacking access to broadband service offered with:

 

a speed of not less than 25 Mbps for downloads; 

 

a speed of not less than 3 Mbps for uploads; and

 

latency less than or equal to 100 milliseconds.

 

"Unserved Service Project" means a project in which not less than 80% of broadband-serviceable locations served by the project are unserved locations. An "Unserved Service Project" may be as small as a single unserved broadband serviceable location.

 

(Source:  Amended at 49 Ill. Reg. 15599, effective November 24, 2025)

 

Section 548.100  Program Description

 

The BEAD funded Connect Illinois Broadband Grant Program focuses on deploying broadband service to unserved locations and underserved locations.  The following documents are incorporated by reference in this Subpart and do not include any later amendments or editions:

 

a)         The Broadband Equity, Access, and Deployment Program Notice of Funding Opportunity (BEAD NOFO), published by the National Telecommunications and Information Administration on May 13, 2022, which may be obtained from DCEO at 500 E Monroe St, Springfield IL  62704, or online at https://broadbandusa.ntia.doc.gov/sites/default/files/2022-05/BEAD%20NOFO.pdf

 

b)         Broadband Equity, Access and Deployment (BEAD) Program: BEAD Restructuring Policy Notice, Published by the National Telecommunications and Information Administration on June 6, 2025, which may be obtained from DCEO at 500 E Monroe St, Springfield IL  62704, or online at https://www.ntia.gov/sites/default/files/2025-06/bead-restructuring-policy-notice.pdf

 

(Source:  Amended at 49 Ill. Reg. 15599, effective November 24, 2025)

 

Section 548.110  Eligible Project Activities

 

The Department shall make grant awards to eligible subgrantees as described in this Part, contingent on available funds. The grants shall be made to support one or more of the following activities as permitted by the applicable Notice of Funding Opportunity and consistent with the priorities established for the BEAD Program and guidance from the National Telecommunications and Information Administration:

 

a)         Last mile deployment projects to unserved locations;

 

b)         Last mile deployment projects to underserved locations; or

 

c)         Deployment of gigabit connections to community anchor institutions.

 

(Source:  Amended at 49 Ill. Reg. 15599, effective November 24, 2025)

 

Section 548.120  Grantee Eligibility Requirements

 

An eligible applicant for a grant award under Subpart C shall meet the definition of an eligible subgrantee under Section 548.90 and shall meet the subgrantee qualification criteria listed in the BEAD NOFO.  To be eligible for a grant award, an applicant shall have an active GATA registration and be qualified on the GATA Grantee Portal (https://grants.illinois.gov/portal/) at the time the application is submitted.

 

(Source:  Added at 48 Ill. Reg. 7690, effective May 8, 2024)

 

Section 548.130  Administrative Requirements

 

Grant opportunities and awards will be administered in a manner that complies with all State and federal requirements applicable to each funding opportunity, including, but not limited to, GATA, the Uniform Guidance and all applicable State or federal laws or guidance (e.g., Broadband Equity, Access, and Deployment Program Notice of Funding Opportunity at https://broadbandusa.ntia.doc.gov/sites/default/files/2022-05/BEAD%20NOFO.pdf).  Grant applicants and grantees shall review all application materials and grant award documents, and shall follow the requirements listed in this Section. 

 

a)         Application Process

 

1)         The Department will post one or more Notices of Funding Opportunity (NOFO) on the GATA Grantee Portal (https://grants.illinois.gov/portal/) seeking applications from eligible subgrantees contingent upon available funds. Funding is available for one or more of the eligible project activities listed in Section 548.120. A single NOFO may seek applications for more than one type of project. Applicants shall submit their application materials by the deadlines set by the Department in the NOFO, which will be at least 30 days after the NOFO posting.

 

2)         As part of the application, applicants shall provide the following information about the proposed project:

 

A)        a description of the purpose of the grant project;

 

B)        a summary of key activities including a description of activities, eligible costs, communities served, technology and infrastructure metrics;

 

C)        a description of the overall project including network design, diagram, project costs, build-out timeline and milestones for project implementation, and a capital investment schedule evidencing complete build-out and initiation of service within four years of receipt of the grant;

 

D)        a description of the project's solution to the broadband related problem including the network technology, internet services and business strategy to drive adoption;

 

E)        a description of the targeted beneficiaries of the project that addresses the location of the communities, market size, economic conditions of the service areas, and targeted customer segments, including providing information on the unserved and/or underserved areas (if applicable) that will be included within the scope of the project;

 

F)         a narrative description of the organization's mission and operating history;

 

G)        a description of the capabilities, experiences, and track record of the organization and its partners to successfully implement, operate and sustain the project including resumes for all key management personnel;

 

H)        a description of the projects service area including a map of the proposed project area;

 

I)         project impact statement including, but not limited to, the number of serviceable user segments, list of premises served, and list of interconnection points;

 

J)         if applicable, the matching funds;

 

K)        evidence the organization has the financial capabilities to meet the obligations associated with a projection including certification of available funds for all project costs that exceed the amount of the grant, letters of credit, audited financial statements, and financial sustainability/pro forma analyses of the proposed project;

 

L)        the specific activities and costs proposed for the grant;

 

M)       a requested budget and supporting justification of the costs requested;

 

N)        a detailed narrative regarding the project readiness;

 

O)        a description of the project viability and sustainability including network capacity and scalability; and

 

P)         pricing strategy, affordability and adoption assistance.

 

Q)        evidence that the applicant has the competence, managerial, financial, technical, and operational capacity to carry out activities funded by the subgrant in a competent manner and in compliance with all State, territorial, and local laws.

 

3)         Applications will be accepted on an ongoing basis until the funds for the program are depleted or the application period closes, whichever comes first.

 

b)         Grant Award Selection

 

1)         Grants will be awarded to eligible subgrantees following a merit review of the applications as required by GATA (44 Ill. Adm. Code 7000.350) and the applicable funding source. In evaluating applications, the Department will consider the following criteria for both priority and non-priority broadband projects:

 

A)        Total Cost. The total BEAD funding required to complete the project, accounting for both total projected cost and the applicant's proposed match;

 

B)        The Speed to Deployment. The Department may consider the prospective subgrantee's binding commitment to provision service by a date certain that is earlier than four years from the date on which the subgrantee will receive the subgrant from the Department subject to contractual penalties to the Department. Greater consideration can be awarded to prospective subgrantees promising an earlier service provision date;

 

C)        Speed of Network and Other Technical Capabilities. The Department may weigh the speed, latency, and other technical capabilities of the technologies proposed by prospective subgrantees;

 

D)        Preliminary/Provisional Subgrantees. For locations where the Department has already identified preliminary or provisionally selected subgrantees, the Department may give additional weight to those applications.

 

2)         The Department shall award funding in a manner that ensures that all unserved locations will be covered and that as many underserved locations as possible will be covered.

 

3)         Applicants must include a match totaling 25% or more of total project costs, unless NTIA issues a waiver.

 

c)         Grant Agreements

Any entity awarded a grant shall execute a grant agreement that sets forth the rights and responsibilities of the grantee and DCEO. The grant agreement shall reflect all applicable State and federal statutory and administrative requirements, including, but not limited to, provisions covering expenditure of grant funds and utilization of property purchased with grant funds. The Department reserves the right to suspend or terminate a grant agreement, recover grant funds received under this Part or withhold any future funding for non-compliance with the grant agreement provisions and applicable State and federal law and regulations. 

 

d)         Grant Disbursements

Disbursement of grant funds from the Department will be made in accordance with a schedule included in the grant agreement. The Department will disburse funds based on the grantee making satisfactory progress to implement grant activities.

 

e)         Grant Performance, Monitoring and Reporting Requirements

Grantees shall comply with all State laws, as well as all GATA and Department requirements, that are set forth in the grant agreement for grant performance, administration, monitoring and reporting, including monitoring any subgrantees.

 

1)         Grant performance goals and performance and expenditure reporting will be based on the specific grant project activities of each grant award and will follow GATA requirements (44 Ill. Adm. Code 7000.410), which include periodic financial and performance reports at least quarterly, or as required by the applicable funding source, and financial and performance close-out reports after the end of the grant term (see 44 Ill. Adm. Code 7000.440). The deadlines for all required reports will be set forth in the grant agreement.

 

2)         Grant audits shall be based on the standards set forth in the GATA requirements (44 Ill. Adm. Code 7000.90).

 

3)         Grantees must monitor their grant activities, and those of any subgrantees, to assure compliance with applicable State and federal requirements and to assure their performance expectations are being achieved.  The Department will monitor the activities of grantees to assure compliance with all requirements and performance expectations of the award.  Grantees shall timely submit all financial and performance reports, and shall supply, upon the Department's request, documents and information relevant to the award.  The Department may monitor activities through site visits.

 

4)         Grantees shall comply with all applicable State and federal laws, including, but not limited to, the Prevailing Wage Act [820 ILCS 130], the Illinois Works Jobs Program Act [30 ILCS 559/20], the Business Enterprise Program for Minorities, Females, and Persons with Disabilities Act [30 ILCS 575], the Employment of Illinois Workers on Public Works Act [30 ILCS 570], the Environmental Protection Act [415 ILCS 5], the Illinois Endangered Species Protection Act [520 ILCS 10], the Illinois Natural Areas Preservation Act [525 ILCS 30], the Interagency Wetland Policy Act of 1989 [20 ILCS 830], and the Illinois State Agency Historic Resources Preservation Act [20 ILCS 3420].

 

f)         Grant Extensions

Contingent upon the availability of funds and consistent with GATA as applicable, the Department may negotiate grant extensions and add funds for grant projects that were originally competitively procured and performed successfully. 

 

g)         Records Retention

Grantees shall maintain, for the period of years set forth in the GATA rules (44 Ill. Adm. Code 7000.430(a) and (b)) and grant agreement, adequate books, all financial records and supporting documents, statistical records, and all other records pertinent to the Connect Illinois Broadband Grant Program BEAD Funded. If any litigation, claim or audit is started before the expiration of the retention period, the records must be retained until all litigation, claims or audit exceptions involving the records have been resolved and final action taken. The applicable retention period will be dependent on the source of funding for the grant award. Grantees shall be responsible for ensuring that contractors and subgrantees comply with the retention requirements.

 

h)         Consistency with Federal Program Specifications

DCEO will perform subgrantee selection in a manner consistent with the BEAD NOFO (incorporated by reference) and the BEAD Restructuring Policy Notice (incorporated by reference).

 

(Source:  Amended at 49 Ill. Reg. 15599, effective November 24, 2025)

 

Section 548.140 Specific Allowable Grant Costs

 

Grant expenditures must comply with GATA, the Uniform Guidance and any applicable funding source, be reasonable and necessary, and support one of the eligible project activities set forth in Section 548.110. Specific allowable grant costs, as described in this Section, will be set forth in the applicable NOFO, based on the types of projects that are available for funding per the funding source.

 

a)         Eligible deployment uses of funding for unserved, underserved, and community anchor institution locations include the following:

 

1)         Construction, improvement, and/or acquisition of facilities and telecommunications equipment required to provide qualifying broadband service, including infrastructure for backhaul, middle- and last-mile networks, and multi-tenant buildings;

 

2)         Long-term leases (for terms greater than one year) of facilities required to provide qualifying broadband service, including indefeasible right-of-use (IRU) agreements;

 

3)         Deployment of internet and wi-fi infrastructure within an eligible multi-family residential building containing confirmed unserved and/or underserved locations;

 

4)         Engineering design, permitting, and work related to environmental, historical and cultural reviews;

 

5)         Personnel costs, including salaries and fringe benefits for staff and consultants providing services directly connected to the implementation of the BEAD Program (such as project managers, program directors, and subject matter experts);

 

6)         Network software upgrades, including, but not limited to, cybersecurity solutions;

 

7)         Training for cybersecurity professionals who will be working on BEAD-funded networks;

 

8)         Workforce development, including registered apprenticeships and pre-apprenticeships, and community college and/or vocational training for broadband-related occupations to support deployment, maintenance, and upgrades.

 

b)         Ineligible costs include those costs that are unallowable under the applicable federal cost principles. Please note that costs ineligible for the BEAD Program may not be paid for with matching funds committed to an award. If a grantee is found to have used grant or matching funds on a prohibited cost, DCEO may take remedial action, including but not limited to deobligation or claw back of funding. The following costs are specifically identified as prohibited under the BEAD Program:

 

1)         Prohibition On Use of Grant Funds for Covered Communications Equipment or Services under the Secure and Trusted Communications Networks Act. A grantee may not use grant funds received under the BEAD Program to purchase or support any covered communications equipment or service (as defined in Section 9 of the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1608)).

 

2)         Prohibition on Profit and Fees. A profit, fee, or other incremental charge above actual cost incurred by the grantee is not an allowable cost under this Program.

 

3)         Prohibition on Use of Grant Funds to Support or Oppose Collective Bargaining. Grantees may not use grant funds, whether directly or indirectly, to support or oppose collective bargaining.

 

(Source:  Amended at 49 Ill. Reg. 15599, effective November 24, 2025)