The states will use their funding through the Capital Projects Fund to connect more than 180,000 homes and businesses to affordable, high-speed internet
WASHINGTON — Today, the U.S. Department of the Treasury announced the approval of broadband projects in an additional six states under the American Rescue Plan’s Capital Projects Fund Florida, Georgia, Iowa, Minnesota, Missouri and Utah. Together, these states will use their funding to connect more than 180,000 homes and businesses to affordable, high-speed internet. A key priority of the Capital Projects Fund program is to make funding available for reliable, affordable broadband infrastructure.
The Capital Projects Fund provides $10 billion to states, territories, freely associated states, and Tribal governments to fund critical capital projects that enable work, education, and health monitoring in response to the public health emergency. In addition to the $10 billion provided by the CPF, many governments are using a portion of their State and Local Fiscal Recovery Funds (SLFRF) toward meeting the Biden-Harris Administration’s goal of connecting every American household to affordable, reliable high-speed internet. Together, these American Rescue Plan programs and the Bipartisan Infrastructure Law are working in tandem to close the digital divide – deploying high-speed internet to those without access today and lowering costs for those who cannot afford it.
“The pandemic upended life as we knew it—from work to school to connecting with friends and family—and exposed the stark inequity in access to affordable and reliable high-speed internet in communities across the country in rural, Tribal, and other underrepresented communities,” said Deputy Secretary Wally Adeyemo. “This funding will lay the foundation for the Biden-Harris Administration’s historic investments to increase access to high-speed internet and reduce internet bills for American households and businesses.”
In accordance with Treasury’s guidance, each state’s plan requires service providers to participate in the Federal Communications Commission’s (FCC) new Affordable Connectivity Program. (ACP). The Affordable Connectivity Program helps ensure that households can afford the high-speed internet they need for work, school, healthcare, and more by providing a discount of up to $30 per month (or up to $75 per eligible household on Tribal lands). Experts estimate that nearly 40% of U.S. households are eligible for the program.
To further lower costs, President Biden and Vice President Harris announced the Administration had secured commitments from 20 leading internet service providers—covering more than 80% of the U.S. population—to offer all ACP-eligible households high-speed, high-quality internet plans for no more than $30 per month. As a result, ACP-eligible households can receive internet access at no cost and can check their eligibility for free internet and sign up at GetInternet.gov.
In addition to requiring funding recipients to participate in the Affordable Connectivity Program, Treasury’s guidance requires recipients to consider whether the federally funded networks will be affordable to the target markets in their service areas and encourages recipients to require that a federally funded project offer at least one low-cost option at speeds that are sufficient for a household with multiple users.
Treasury announced state awards in June, July, August, early October and late October will continue approving state and Tribal plans on a rolling basis.
To date, 22 states have been approved to invest nearly $3 billion of CPF funding in affordable, reliable high-speed internet, which those states estimate will reach more than 700,000 locations.
The following descriptions summarize the six state plans that Treasury approved today:
- Florida is approved for $248 million for broadband infrastructure, which the state estimates will connect 48,400 households and businesses – representing approximately 10% of locations still lacking high-speed internet access. Florida’s award will fund Florida’s Broadband Infrastructure Program (BIP), a competitive grant program designed to expand last mile broadband access to homes and businesses in rural areas of the state. Funding from CPF will help Florida continue to prioritize fiber-optic networks and projects proposing affordable service. The BIP is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households. The plan submitted to Treasury and being approved today represents 68% of the state’s total allocation under the CPF program. Florida submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
- Georgia is approved to receive $250 million for broadband infrastructure, which the state estimates will connect 70,000 households and businesses – representing 15% of locations still lacking high-speed internet access. Georgia’s award will fund the Georgia Capital Projects Fund grant program, a competitive grant program that is designed to fund broadband infrastructure projects that provide service to areas identified by the state to currently lack access to reliable broadband that can meet or exceed 25/3 Mbps, and that adopt practices that support both efficient broadband expansion and community engagement. The Georgia Capital Projects Fund is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households families. The plan submitted to Treasury and being approved today represents 96% of the state’s total allocation under the CPF program. Georgia submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
- Iowa is approved for $152.2 million for broadband infrastructure, which the state estimates will connect 18,972 households and businesses – representing approximately 16% of locations still lacking high-speed internet access. Iowa’s award will fund the Empower Rural Iowa Broadband Program, a competitive grant program designed to address inequities in access to broadband throughout the state of Iowa. Using a three-step process, the program combines mapping data, input from communities, and applications from service providers. Funding from CPF will help Iowa bring broadband service to areas identified having a critical need for broadband. Empower Rural Iowa Broadband Program is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households. The plan submitted to Treasury and being approved today represents 100% of the state’s total allocation under the CPF program.
- Minnesota is approved for $44 million for broadband infrastructure. Minnesota’s award will fund two additional broadband infrastructure programs: Minnesota’s Line Extension Program, a competitive grant program designed to address the needs of individuals who are located near infrastructure for high-quality broadband service but where the cost of the last mile connection is a barrier; and the Low-Density Pilot Program, a competitive grant program that provides financial resources for new and existing providers to invest in building broadband infrastructure in low-density areas of the state that currently lack high-speed internet. Funding from CPF will help Minnesota continue its efforts to provide reliable internet access to predominately rural locations previously facing cost barriers. Both programs are designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households. In total, Minnesota is using $127 million –70% of their CPF funding –for broadband infrastructure to reach an estimated ~32,000 locations, or ~12% of locations still lacking high-speed internet access in the state. Minnesota submitted plans for the remainder of their CPF funds and these applications are currently under review by Treasury.
- Missouri is approved for $196.7 million for broadband infrastructure, which the state estimates will connect 37,979 households and businesses – representing approximately 8% of locations still lacking high-speed internet access. Missouri’s award will fund the Missouri Broadband Infrastructure Grant Program, a competitive grant program designed to fund broadband infrastructure projects in areas that currently lack access to high-speed, reliable broadband. Funding from CPF will help Missouri bring service to areas where broadband infrastructure projects would not be feasible without assistance. The Missouri Broadband Infrastructure Grant Program is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households. The plan submitted to Treasury and being approved today represents 100% of the state’s total allocation under the CPF program.
- Utah is approved for $10 million for broadband infrastructure, which the state estimates will connect 3,080 households and businesses – representing approximately 5% of locations still lacking high-speed internet access. Utah’s award will fund the Broadband Infrastructure Gap Networks Grant Program (Gap Networks Grant Program), a competitive grant program designed to address gaps in broadband infrastructure where reliable broadband service is currently unavailable. Funding from CPF will help Utah continue its efforts to bridge the state’s remaining digital divide. The Gap Networks Grant Program is designed to provide internet service with speeds of 100/100 Mbps symmetrical to households and businesses upon project completion. Each of the internet service providers funded by the program will participate in the FCC’s Affordable Connectivity Program (ACP) – a $30 per month subsidy for qualifying households. The plan submitted to Treasury and being approved today represents 7% of the state’s total allocation under the CPF program. Utah submitted plans for the remainder of their CPF funds and these plans are currently under review by Treasury.