Broadband programs included in the federal bipartisan infrastructure bill of 2022 could increase U.S. gross domestic product (GDP) by $146 billion, according to a new analysis from Keynesian Technology, which studies the impact of Keynesian economic theory on the technology industry.

The three broadband programs examined are the $42.5 billion Broadband Equity Access and Deployment (BEAD) Program, the $3 billion Tribal Broadband Connectivity Program (TBCP), and the $14.2 billion Affordable Connectivity Program (ACP).

The BEAD program covers part of the cost of broadband expansion in unserved or underserved rural areas. The TBCP funds broadband expansion in tribal areas. The ACP, which has already exhausted its funds, has provided $30 per month toward the cost of broadband service for low-income households.

The impact of the BEAD programme on GDP is estimated at US$84.8 billion, while the impact on ACP is estimated at US$55.2 billion and the impact on TBCP is estimated at US$5.99 billion.

Nationwide broadband programs and GDP

The Keynesian Technology study examined the upstream and downstream impacts of the three broadband programs. The upstream impacts affect industries such as civil engineering and equipment manufacturers that benefit from increased demand for broadband. The downstream impacts affect industries that benefit economically from the use of broadband.

The sectors most affected include the information sector, professional, scientific and technical services, public administration, real estate, rental and leasing sectors, manufacturing, and the financial and insurance sectors.

I didn’t see any discussion in the study about how additional funding for the ACP would affect the results. And comments were generally limited to a brief defense of the broadband programs. The authors noted that some have questioned the federal government’s investment in broadband (the largest federal investment in broadband infrastructure to date) and pointed out that some people have said the same about the Rural Electrification Act, which has been very successful.

“At the time, many critics argued that the program was too expensive,” the authors wrote. “But as the facts show, the investment laid the foundation for nearly a century of economic development, improving citizens’ quality of life and expanding business opportunities.”

The bipartisan infrastructure bill is also known as the Infrastructure Investment and Jobs Act.