Capital Projects Fund

The Aloha State was not prepared for the COVID-19 pandemic's stay-at-home/work-from-home orders. The immediate halt to most in-person interaction resulted in disruptions to business, education, healthcare, the provision of other essential services, and social functions—demonstrating Hawaiʻi’s vulnerabilities, which were exacerbated by inadequate digital infrastructure. As a result, providing equitable access to broadband, improving digital literacy, and effectively applying digital tools in essential sectors are now among the state’s most pressing challenges.

The Department of the Treasury approved $115.5 million for high-speed internet projects in Hawaii under the American Rescue Plan’s Capital Projects Fund. The state will invest $101.7 million of the award in the Hawaii Subsea Middle Mile Program designed to address the unique subsea cable infrastructure that’s needed to provide connectivity between the islands to ensure they have reliable, high-speed internet access.

Focus Broadband has completed the final stages of a project in Brunswick County (NC). Residents and businesses in the communities of Northwest and Sandy Creek now can access gigabit speed service. Focus Broadband was awarded $1.4 million to provide high-speed Internet to more than 1,000 addresses in Brunswick County in North Carolina’s special supplementary round of the Growing Rural Economies through Access to Technology (GREAT) program.

Fourteen Maine counties and 73 communities will benefit from $20 million in grant funding from the Maine Connectivity Authority (MCA) as part of its Reach Me Line Extension Program that will expand reliable, fast and affordable internet.

Delivering broadband to a state as large and diverse as California is complicated. Regions and communities vary by levels of competition, historic investment, and the need for subsidies to incentivize infrastructure deployment and broadband adoption. While broadband infrastructure and increasing adoption have helped power California’s fiscal health and well-being for decades, access to this essential service remains uneven.

A years-long debate slowed progress in the Keystone State, but in September 2022, Gov. Tom Wolf (D-PA) announced that $500 million from the American Rescue Plan Act will go to local governments to invest in infrastructure, including broadband, accelerating the Commonwealth's efforts to close the digital divide.

Treasury approved $540.2 million for high-speed internet projects in California under the American Rescue Plan’s Capital Projects Fund (CPF)—the largest single-infusion of broadband funding to a state under CPF. California will use its funding to connect approximately 127,000 homes and businesses to affordable, high-speed internet. California’s Last Mile Broadband Expansion grant program is a new competitive grant program designed to provide internet access to areas of the state currently lacking access to reliable broadband at speeds of 25/3 Mbps.

Getting access to broadband services remains a challenge for many residents of affordable rental housing. Though these properties are often in areas that have high-speed internet service, physical access and cost may keep households offline. Recognizing these challenges, several states have directed funding toward programs focused on expanding broadband access in affordable rental housing. Pandemic relief funds are another tool states are using to improve broadband access in low-income neighborhoods and affordable rental housing. Several states have also allocated a portion of their 

The US Department of the Treasury’s Chief Recovery Officer Jacob Leibenluft joined White House American Rescue Plan Act (ARPA) Coordinator Gene Sperling and US Senator Bob Casey Jr. (D-PA) to announce the approval of $200 million for high-speed internet projects in Pennsylvania under the American Rescue Plan’s Capital Projects Fund (CPF).

On March 28, 2023, the Treasury Department issued and invited comments on proposed compliance guidance applicable to broadband projects funded through Coronavirus State and Local Fiscal Recovery Fund (SLFRF) or Capital Projects Fund (CPF) awards. The Proposed Guidance addresses a variety of important questions relating to the use of SLFRF and CPF funds for broadband projects, including: