According to the Network World, in the first round of allocation of the earmarked $7.2 billion broadband stimulus package, over the next two years, the Obama administration Wednesday released $4 billion to pay for broadband projects.

Of the total stimulus funds, $4.7 billion has been allotted to the National Telecommunications and Information Administration (NTIA) for awarding grants to projects developing broadband infrastructure in un-served or under-served areas; and the remaining $2.5 billion has been allotted to the Department of Agriculture (USDA) for advancing loans to companies developing broadband infrastructure in rural areas.

The grant guidelines - accompanying the recently-released more than half of the total allocated funds - include the condition that companies winning the grants to help develop new broadband infrastructure will adhere to the Internet Policy statement laid down by the Federal Communications Commission, which forbids companies from intentionally blocking or slowing Internet traffic on their networks.

The grant guidelines are fulfill the so-called 'Net neutrality' criterion, the advocates of which have been urging the government to set stringent requirements to enhance consumers accessibility to Net content, and ensure that network operators do not thwart businesses of competitors.

The government will accept applications for the first round from July 14 through August 14. The second round of funds would likely be released in the fall; while the final round is slated for a spring 2010 release.