State and Local Fiscal Recovery Funds: A Catalyst for Innovation, Equity, and Resilience in Communities

The State and Local Fiscal Recovery Funds (SLFRF) program established by the American Rescue Plan Act (ARPA) continues to deliver critical financial support to communities across the country recovering from the COVID-19 pandemic. The SLFRF program is stimulating investments in strengthening the country’s internet infrastructure by funding upgrades—such as laying fiber backbone, completing last-mile connections, and prioritizing equitable access. These crucial investments provide residents with access to education, health care, government services, and economic opportunity. Since January 2023, communities increased their SLFRF budgets for broadband projects by 3 percent. As of March 31, 2023, SLFRF recipients budgeted over $7.7 billion in SLFRF funds for more than 950 broadband internet projects. SLFRF funds invested in broadband projects complement the American Rescue Plan’s investment in expanding affordable highspeed internet access through Treasury’s Capital Projects Fund (CPF). Examples of broadband projects include:

• Box Elder County, Utah, is planning to leverage $1.5 million in SLFRF funds for last-mile infrastructure investments to bring high-speed internet service to underserved rural communities.
• The City of Brownsville, Texas is budgeting $20 million to connect residents and businesses to high-speed internet.
• The State of Iowa is investing nearly $200 million from the SLFRF program and $149 million from the Capital Projects Fund into upgrading broadband connections throughout the state. Projects are located in over fifty different counties.
• New Kent County, Virginia, is budgeting nearly $4.5 million in SLFRF funds to provide access to highspeed fiber optic broadband service to businesses and to every household in the County, including over 3,000 households that are currently unserved by broadband internet.
• The State of West Virginia is budgeting $90 million from the SLFRF program and $130 million from the Capital Projects Fund for the West Virginia State Broadband Initiative, which comprises three award programs. First, the Line Extension Advancement and Development (LEAD) project will expand existing fiber and cable networks. Second, The GigReady Initiative will provide matching state funds for local governments to pool their broadband investments. Third, the Major Broadband Project Strategies (MBPS) program will focus on large-scale multicounty projects that require additional resources to achieve rapid implementation.