Sen Van Hollen Urges the Treasury to Allow American Rescue Plan Flexibility

Sen Chris Van Hollen (D-MD) sent a letter to Treasury Secretary Janet Yellen urging the Department of the Treasury to provide crucial flexibility to state and local governments in the use of American Rescue Plan funds in order to help close the digital divide and ensure families can afford broadband. Under the American Rescue Plan, state and local governments are able to use funding from the Local Fiscal Recovery Fund and the $10 billion Capital Projects Fund to expand broadband infrastructure. However, interim guidance released by the Department would have limited broadband expansion efforts. While the Treasury has since provided some clarity, Sen Van Hollen urges the Treasury to provide maximum flexibility in the final rule so that state and local governments can use funds to ensure affordability of broadband in addition to access. "The funding provided in the [American Rescue Plan] provides an opportunity for our country to build back better and close the digital divide," says Van Hollen. "I encourage the Department to issue a final rule that is not overly prescriptive but rather empowers local governments and allows them to determine their needs as they work to guarantee that their residents are connected and full participants in our digital world."