NEWTON FALLS — The state has reversed an earlier decision to renege on a grant to help bring a high-speed communication line to the hamlet and Newton Falls Fine Paper.

"We look forward to working with our partners in delivering this broadband access project, not only for the benefit of a vital regional industry but also for the benefit of those living and working in the hamlet," St. Lawrence County Planning Director Keith J. Zimmerman said.

However, the amount of money first promised may be reduced because of the state's fiscal problems.

The award from the state Office for Technology was part of a package put together by the county to extend the Development Authority of the North Country's fiber-optic line five miles from Star Lake.

The county, which is providing $50,000, requested $100,000 from the state, but was told to expect $75,000. The paper mill stepped in to come up with the missing $25,000.

Then the state withdrew its award because of a misinterpretation that the county did not have a private partner. The county appealed. On Tuesday, the county received a letter that it was eligible after all.

Susan E. Beaudoin, an attorney for the Office for Technology, found that the county's proposal included written support from the paper mill with its intent to contract with an Internet service provider.

"We are pleased that the state found merit in the case we originally presented and decided that the proposal met the objectives of the program," Mr. Zimmerman said. "Increasing Internet access in the southern end of the county remains a critical and largely unmet community development need."

In her letter to the county, Ms. Beaudoin also said that broadband grants had been reduced but that her office was working to find alternative funding sources.