Capital Projects Fund

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?

Consolidated Communications was awarded $40 million in funding from American Rescue Plan Act (ARPA) to build fiber to nearly 25,000 unserved homes throughout New Hampshire. Consolidated will invest its own capital to bring fiber to more than 32,000 additional homes.

Roger Timmerman, CEO of Utopia Fiber, called out the "army" of lobbyists that are keeping broadband speed standards down in the US. "The problem is we've got an $8 million a week lobbying effort from big telecom, and so anytime the federal government – or even now at the state level – when any of them try to raise that bar for the standard of what consumers need for broadband, there's an army of lobbying that goes up and opposes that.

The US Department of the Treasury announced the approval of high-speed internet projects in three additional states under the American Rescue Plan Act's (ARPA) Capital Projects Fund (CPF): Arizona, Tennessee, and Wyoming. Together, these states will use their funding to connect nearly 190,000 homes and businesses to affordable, high-speed internet.

Here is an overview of the major federal funding vehicles for broadband that are helping to fuel the broadband investment cycle and are aimed at closing the digital divide so that all Americans have access to high-speed, reliable, affordable broadband:

On his first day in office, President Joe Biden (D-DE) charged the federal government with advancing equity for all, including communities that have long been underserved, and addressing systemic racism in our Nation’s policies and programs. In this new executive order, the President extends and strengthens equity-advancing requirements for agencies, and positions agencies to deliver better outcomes for the American people. The order calls for:

Sens. Mark Warner (D-VA) and Jerry Moran (R-KS) along with Reps. Mike Kelly (R-PA-16) and Jimmy Panetta (D-CA-19) reintroduced the Broadband Grant Tax Treatment Act (BGTTA) — legislation that would amend the Internal Revenue Code to ensure that funding for broadband deployment from the Infrastructure Investment and Jobs Act (IIJA) and the American Rescue Plan Act (ARPA) will not be considered taxable income.

While expanding broadband access throughout Texas is a priority for Governor Greg Abbott (R-TX), part of his More Prosperous Texas initiative, the governor's record on connectivity is mixed. Texas faces two simultaneous challenges. First, there remain barriers to access which are particularly prevalent in rural areas of the state. Second, even where broadband is available, there remains a substantial portion of Texans who have not adopted or subscribed to broadband in their homes.