Department of Treasury

The US Treasury just gave California more than half a billion dollars to fund broadband buildout. This money may help reduce the digital divide. It also might not.

On May 17, 2023, The US Department of the Treasury released supplementary broadband guidance for its State and Local Fiscal Recovery Fund (SLFRF) and Capital Projects Fund (CPF). As provided for in each SLFRF and CPF award agreement, the Uniform Guidance applies to all uses of funds made available under those awards unless provided otherwise by Treasury. In response to questions from recipients and internet service providers, Treasury issued this guidance regarding the application of the Uniform Guidance to broadband infrastructure projects.

The US Department of the Treasury approved federal funds for multi-purpose community facility projects and broadband infrastructure projects in Delaware and Idaho under the American Rescue Plan’s (ARPA) Capital Projects Fund (CPF). A key priority of the CPF program is expanding economic opportunities and providing internet connectivity in communities with unmet needs. The following descriptions summarize the Idaho and Delaware plans that Treasury approved:

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.

A $10 million project to bring broadband to rural areas of Lancaster County (NE) is underway, thanks to federal stimulus dollars earmarked by Lancaster County commissioners for the project. The project will install 175 miles of conduit throughout Lancaster County to and between the 12 incorporated cities and villages, and 10 unincorporated communities, according to county officials. Once that's done, telecommunications companies will lease the conduit from the county to install fiber technology to bring services to residents and businesses. In January 2022, the County Board committed $10 mi

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.

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:

New York State is approaching universal broadband through both access and adoption—and recognizes that affordability is a key barrier to adoption. In January 2022, Gov. Hochul unveiled ConnectALL, a $1 billion public-private initiative to deliver affordable broadband to millions of New Yorkers and transform the state's digital infrastructure through new investments. The initiative includes: 

The US Department of the Treasury announced the approval of high-speed internet projects in New York under the American Rescue Plan’s (ARPA) Capital Projects Fund (CPF). The state will use its funding to connect nearly 100,000 low-income housing units to affordable, high-speed internet.