Capital Projects Fund Accelerates States' Efforts to Close the Digital Divide

Benton Institute for Broadband & Society

Friday, June 10, 2022

Weekly Digest

Capital Projects Fund Accelerates States' Efforts to Close the Digital Divide

In the American Rescue Plan Act, Congress allocated $10 billion, called the Capital Projects Fund, to ensure that all communities have access to the high-quality modern infrastructure, including broadband, needed to access critical services. On June 7, the U.S. Department of Treasury approved the first Capital Projects Fund awards to four states: Virginia, Louisiana, West Virginia, and New Hampshire. The awards, totaling more than $500 million, will increase access to affordable, reliable high-speed internet to more than 200,000 homes and businesses.

In a series of articles published this week, the Benton Institute for Broadband Society profiled the universal broadband efforts of each of the four states that received Capital Projects Fund support this week. 

American Rescue Plan Fuels Virginia's Universal Broadband Efforts: Virginia's goal is universal broadband coverage before the end of the decade. With Capital Projects Fund support the Virginia Department of Housing and Community Development will oversee a competitive grantmaking program, the Virginia Telecommunication Initiative (VATI). Virginia estimates that investments made using the Capital Projects Fund will serve 28% of locations still lacking high-speed internet access in the Commonwealth.

Treasury Helps Broadband for Everyone in Louisiana: Louisiana is aiming to close the digital divide in the state by 2029. Getting there could cost over $1 billion. Capital Projects Fund support will fuel the Granting Unserved Municipalities Broadband Opportunities (GUMBO), Louisiana’s multiphase broadband infrastructure competitive grant program. Louisiana estimates that investments made using the Capital Projects Fund will serve 25% of locations still lacking high-speed internet access in the state.

Capital Projects Fund Aids West Virginia's Billion Dollar Broadband Strategy: In October 2021, Governor Jim Justice (R-WV) announced a billion-dollar strategy to bring broadband access to 200,000 homes and businesses in West Virginia. This week, the plan got a $136 million boost with support from the Capital Projects Fund. The federal funding helps connect 10% of locations still lacking high-speed internet access in the state.

Broadband is the Future of New Hampshire: Only 30 percent of New Hampshire have access to fiber-optic service and only about 7 percent have access to 1-gig service. The state has created the Broadband Contract Program, overseen by the New Hampshire Department of Business and Economic Affairs, to offer broadband service providers a financial incentive to bring service to unserved and underserved addresses in the state—areas/addresses where it may be financially detrimental for providers to attempt to expand. The state will use $50 million of its Capital Projects Fund allotment for broadband deployment, helping to bring service to half of the locations still lacking high-speed internet access in the state.  

Each state has its own approach to closing the digital divide. Elements of these states' efforts could be incorporated into other state's plans as they consider how to employ federal dollars to achieve universal broadband access. 

In addition to the articles above, check out these resources from the Department of Treasury and Benton Institute:

                      TREASURY                                                BENTON

Capital Projects Fund

Putting State Broadband Funds to Work: Best Practices In State Rural Broadband Grant Programs

Virginia CPF Award Fact Sheet

Broadband for America Now

Louisiana CPF Award Fact Sheet

The Era of the Broadband Public-Private Partnership: New trends and opportunities in the wake of COVID-19

West Virginia CPF Award Fact Sheet

The Future of American Farming: Broadband Solutions for the Farm Office, Field, and Community

New Hampshire CPF Award Fact Sheet

Six Community Broadband Networks Demonstrate Diversity of Approaches to Connectivity Challenges

 

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.


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Kevin Taglang

Kevin Taglang
Executive Editor, Communications-related Headlines
Benton Institute
for Broadband & Society
1041 Ridge Rd, Unit 214
Wilmette, IL 60091
847-328-3040
headlines AT benton DOT org

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By Kevin Taglang.