US Treasury has doled out nearly $5B from Capital Projects Fund

Much of the hype around broadband funding is focused on the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) program, but money continues to flow from the Capital Projects Fund (CPF). To date, the US Treasury Department has awarded nearly $5 billion from the CPF across 33 states. That amount is almost half of the Treasury Department’s $10 billion allotment for the fund. States that have received funding thus far expect to connect 1.4 million households as a result. The CPF was created in March 2021, but Treasury only began approving state funding requests June 2022. The Treasury Department expects to dole out most of the remaining $5 billion in 2023. Projects using the CPF dollars must be completed by the end of 2026. As for whether federal funding can bridge the digital divide, Wender is optimistic the government's various program will ultimately connect or provide access “to virtually every location in the U.S.” However, success also depends on the state of the Affordable Connectivity Program (ACP), the FCC’s low-income broadband subsidy program. Should the ACP run out of money, it would have a “cascading effect.” Not only would low-income households lose out on their internet connections, but it would also impact revenue for ISPs, said Wender. “It will dry up a revenue stream that you all are counting on as you’re going to these areas that you previously thought were not profitable,” he added.