FCC announces $115 million in funding for Internet expansion

The Federal Communications Commission (FCC) said on Wednesday that it will spend $115 million over the next three years to expand high-speed Internet service to 400,000 people and businesses that currently lack it.

That funding will be coupled with "tens of millions" of dollars of private investment, the commission said.

The money is part of the FCC's Connect America Fund, a subsidy that the commission created last year when it overhauled its Universal Service Fund, which focused on ensuring telephone access.

Money for the funds comes from charges on consumers' monthly phone bills.

The goal of the new Connect America Fund is to provide Internet service to 19 million homes and businesses by 2020.

Expanding broadband Internet access has been one of the FCC's top priorities under Chairman Julius Genachowski.

"Today’s action is just the beginning of our efforts to unleash the benefits of broadband for millions of homes and small businesses in unserved rural communities across the U.S," Genachowsi said in a statement. "In today’s economy, broadband is a vital platform for innovation and opportunity, including jobs, education and healthcare.”

–Updated at 1:17 p.m.

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