Treasury Improves Rules for Rescue Plan Aid for Broadband Networks

Communities across the United States have gotten an unexpected gift from the Biden Administration in the form of additional flexibility to use American Rescue Plan funds for needed broadband investments, particularly those focused on low-income neighborhoods in urban areas. When Congress developed and passed the American Rescue Plan Act, it tasked the Treasury Department with writing the rules for some key programs, including the State & Local Fiscal Recovery Funds (SLFRF). That program is distributing $350 billion to local and state governments, which can use it for a variety of purposes that include broadband infrastructure and digital inclusion efforts. The Institute for Local Self-Reliance (ILSR) breaks down how local governments have wide latitude to use SLFRF funds for a variety of needed broadband infrastructure investments, especially to resolve affordability challenges. ILSR covers some key points in the Final Rule with references to the text in the hopes that it will help communities better understand their options and share key passages with their advisers and attorneys.