One of those bumps has been a dearth of loans to promote the build-out of broadband infrastructure to unserved areas. Anderson conceded that few companies seek assistance for that purpose because it is difficult to craft viable business models for repayment. He also said the RUS does not always dispense all of its annual funding.

Lamenting that the United States has dropped from fourth to 15th in worldwide per-capita broadband subscriptions, Subcommittee Chairwoman Rosa DeLauro, D-Conn., expressed frustration that any RUS money would go unused. "There's something wrong with this picture," she admonished during an exchange with Anderson.

But he countered that evolving technologies and complex loan structures have forced the RUS to go slow at times.

"Despite all of the administration's frequent talk about competitiveness, we are falling behind," DeLauro said earlier in the hearing. "We're not moving in a way we ought to be moving."

Senate and House lawmakers want to sharpen the loan effort's focus through pending bills that strive to ensure funding goes where it is most needed. In May, the RUS issued proposed changes to address those concerns, with final rules expected soon.

Since its inception, the initiative has approved 79 loans worth $1.35 billion in 41 states. When fully operational, the projects will serve more than 1 million citizens in nearly 2,000 communities, the RUS said.

The House-passed agriculture appropriations bill for fiscal 2008 would provide $6.45 million toward broadband loans valued at $300 million and $17.82 million in broadband grants.

"We must be careful to place federal subsidy dollars where they are most needed," said subcommittee ranking Republican Jack Kingston of Georgia, who said he also worries that federal initiatives may be undercutting private, local and state efforts to promote broadband.

Despite requests for regular reports, the FCC has not updated Congress recently about broadband, said Mark Lloyd, senior fellow at the Center for American Progress. Compared to France, Japan and South Korea, U.S. subscribers typically pay more money for slower broadband speeds, he added.

"The problem is a lack of federal leadership" he said, underscoring the pitfalls of leaving decisions to the market. "This is where the FCC has failed because we've trusted the market but haven't verified." He said redundant wire-based and wireless Internet systems are critical for national security purposes in case one system fails during a crisis.