Arkansas Uses Capital Projects Fund to Connect Rural Areas

In 2019, Governor Asa Hutchinson (R-AR) laid out a goal of 25 Megabits per second (Mbps) download and 3 Mbps upload broadband deployed to population centers of 500 or more by 2022. Approaching the end of 2022 and the time Arkansas set to achieve its original broadband goals, the state has received new funds through the US Department of Treasury's Capital Projects Fund to help achieve universal connectivity. The April 2022 Arkansas Broadband Master Plan, compiled by the Broadband Development Group (BDG), reported that 100,000 of these homes will be covered under current federal funding programs. To connect the remaining 110,000 homes, BDG estimated it will cost $550 million. The Master Plan recommends that Arkansas fund this through American Rescue Plan Act (ARPA) and Infrastructure Investment and Jobs Act (IIJA) grants as well as through the Arkansas Rural Connect Program. On August 30, 2022, The U.S. Department of Treasury announced Capital Projects Fund awards for five states including $47.5 million in broadband infrastructure funding for the un- and underserved in Arkansas. This funding will go right into the Arkansas Rural Connect Program to support its efforts to close the state's digital divide. With the Capital Projects Fund support, Arkansas is aiming to provide 5,500 locations with reliable internet of at least 100/20 Mbps but with the goal of achieving 100/100 Mbps symmetrical service. Each provider funded by the program is also required to participate in the Federal Communications Commission's Affordable Connectivity Program.