Shot Clock Winding Down on ARPA Funds For Broadband Projects

Communities looking to leverage American Rescue Plan Act (ARPA) funding for broadband or other local infrastructure need to act soon or risk losing access to a once-in-a-generation funding resource. Most ARPA recipients seem well aware of the deadline, but data suggests more than a few communities could drop the ball. The Treasury Department tracks allotted ARPA awards and projected budget plans via a massive database. According to the Treasury, there’s 21,000 local governments participating in the State and Local Fiscal Recovery Funds (SLFRF) program. Those participants reported nearly $320 billion in lost revenue resulting from the pandemic—$131 billion of which have been offset by SLFRF funding. According to the Treasury, SLFRF recipients have budgeted more than $8.2 billion in SLFRF funds for more than 1,400 broadband deployment projects nationwide. But according to the National League of Cities (NLC), the data on how many municipalities have actually fully met obligation requirements isn’t as up to date. That data, some of which is only current through December 31, 2023, indicates that tier 1, 2, and 3 recipients have obligated 72.3%, 67.6%, and 69.8% of allocated awards, numbers that have likely increased since. How much those figures have increased—and how many municipalities will lose access to what could be some of the most flexible broadband subsidies in their lifetimes—remains an open question.