The Rural Broadband Modernization Act seeks to significantly enhance access to broadband telecommunications services in rural areas across the United States. Its primary purpose is to offer financial assistance through grants, loans, and loan guarantees to cover the costs associated with constructing, improving, and acquiring facilities and equipment for broadband service. The bill defines 'rural area' broadly, excluding larger urban centers, and sets a high standard for broadband service.

Projects funded under this Act must deliver a minimum of 100 Mbps symmetrical throughput for each rural household in the proposed service area. The highest priority for funding is given to applications serving unserved rural communities lacking 25/3 Mbps service, followed by projects providing the maximum level of broadband to the greatest proportion of rural households. Priority is also extended to entities with at least five years of service in rural areas and communities with specific needs like low population, outmigration, or high low-income populations.

Grant amounts can cover up to 75 percent of total project costs, with the Secretary having the authority to provide 100 percent grants for projects in areas with fewer than seven households per square mile. Eligible projects for grants must serve areas where at least 90 percent of households lack 100/20 Mbps service, and cannot concurrently receive other federal or state broadband grants. All recipients must agree to complete broadband infrastructure buildout within five years of receiving initial funds.

Loans and loan guarantees will bear interest rates comparable to Treasury costs or market rates, with terms up to 35 years. The Secretary must ensure security is commensurate with risk, potentially reducing it for areas without existing broadband service. Additionally, the bill allocates 3 to 5 percent of appropriated funds for technical assistance and training to help eligible entities prepare applications and improve management.

The Secretary may also offer payment assistance loans, which can have no interest or principal payments during compliance with project milestones, or subsidized loans with reduced interest rates. This assistance aims to improve grantee compliance, promote project completion, and protect taxpayer resources. The Act authorizes $500,000,000 annually for fiscal years 2026 through 2030, with funds allocated to states based on the number of small communities, and terminates the authority for new awards after September 30, 2030.