Capital Projects Fund

Kentucky, which only established its broadband office in 2022, is putting in some hard, and in some cases unique, work to enhance internet access and prepare for the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program. Meghan Sandfoss, executive director for Kentucky’s Office of Broadband Development, delved into some of the challenges the state has encountered.

Today marks the second anniversary of the American Rescue Plan Act. Funding from the law provided over $25 billion to jumpstart universal broadband access—including broadband connections for 16 million students through the Emergency Connectivity Fund for schools and libraries to close the homework gap.

In 2021, the South Carolina General Assembly established the Office of Broadband Coordinator within the Office of Regulatory Staff to serve as the central broadband planning body for the state and to coordinate with federal, state, regional, local, and private entities to encourage the continued development of access to broadband in the Palmetto State. The office was charged with convening a collaborative stakeholder process to identify challenges to expediting broadband access—and so it established the Broadband Advisory Council to help guide broadband planning in South Carolina.

The New Mexico Office of Broadband Access and Expansion (OBAE) has extended the deadline for Wave Three of the Connect New Mexico Pilot Program (“Pilot Program”). The application period will close on April 3, 2023. The Pilot Program aims to bridge the digital divide and foster socioeconomic progress by providing infrastructure grants for broadband deployment to unserved and underserved communities across New Mexico. The $123 million pilot program is funded by the American Rescue Plan Act’s (ARPA) Coronavirus Capital Projects Fund (CPF).

The US Department of the Treasury announced the approval of broadband projects in South Carolina under the Capital Projects Fund (CPF) in the American Rescue Plan Act (ARPA). The state estimates it will use its funding to connect over 31,000 homes and businesses to affordable, high-speed internet—representing 23% of locations still lacking high-speed internet access..

The Texas Comptroller's Office intent to solicit an initial round of grant applications totaling $120 million for broadband infrastructure projects as part of the Bringing Online Opportunities to Texas (BOOT) program. The BOOT program will support broadband infrastructure projects in eligible areas that bring reliable, affordable internet service to communities in need.

States are poised to play a critical role in the broadband funding landscape, but each state has a different approach to selecting broadband projects and administering funds.

The US Treasury Department awarded Kansas $15 million for digital equity work, with the money going toward public Wi-Fi, digital skills training, and more. In addition, 20 other states have applied for digital equity funding from the same source, with other awards expected to be made soon. “Kansas is just the first of many more to come,” said Joseph Wender director of the Treasury Department's Capital Projects Fund (CPF), which is part of the American Rescue Plan Act (ARPA).

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.

In 2016, the Tennessee Department of Economic and Community Development published research performed by Strategic Networks Group and NEO Connect aimed at answering four basic questions: 1) What is the technical definition of broadband? 2) How many Tennesseans do not have access to broadband? 3) What is the cost of bringing broadband to Tennesseans that do not have it?