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States Should Use Treasury Department’s Broadband Funds to Compliment Infrastructure Bill

Director of the Capital Projects Fund said the fund should be used with infrastructure bill money to close broadband gaps.

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WASHINGTON, May 18, 2022 – States should use the Treasury Department’s Capital Projects Fund in conjunction with money from the Infrastructure, Investment and Jobs Act to cover gaps in broadband service, said the CPF’s director on Wednesday.

With the release by the National Telecommunications and Information Administration of funding application guidelines last week, states are focused on how they can access part of the $65 billion offered through the IIJA.

But CPF Director Joseph Wender said at a Broadband Breakfast Live Online event Wednesday that the CPF money is available right now to close the gaps in broadband coverage and will be most effective when used as a precursor to IIJA funds that will provide permanent solutions to coverage gaps. He suggested that states view IIJA funds as “complementary” to capital projects.

Screenshot of Joseph Wender

“We expect to make our first awards to those first states in a matter of weeks, potentially days,” said Wender. “The Capital Projects Fund is the tip of the spear in the administration’s goal of closing the digital divide.”

States are responsible to determine with local entities where the money will go, said Wender, provided the individual programs follow all Treasury Department requirements.

The CPF was instituted in March of 2021 as part of the American Rescue Plan Act in response to the COVID-19 pandemic, which highlighted the need for communities to access high-speed internet.

It allocates $10 billion to the U.S. Department of Treasury for critical capital projects that directly enable work, education, and health monitoring. It is charged to get the money out to states as soon as possible to help the nation recover from the pandemic.

The money can be used for broadband infrastructure, digital connectivity technologies such as device programs to supply citizens with devices that connect to the internet or public Wi-Fi, and multi-purpose community facilities that are publicly available.

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, May 18, 2022, 12 Noon ET – The U.S. Department of the Treasury’s Capital Projects Fund and Broadband Infrastructure

The release of the U.S. Commerce Department’s rules on the Infrastructure Investment and Jobs Act heightens the importance of inter-agency coordination on broadband projects. In this special Broadband Breakfast Live Online event, Joseph Wender, director of the Treasury Department’s Capital Projects Fund will speak with Broadband Breakfast Editor and Publisher Drew Clark about the role of the Treasury Department in broadband infrastructure spending.

Panelists:

  • Joseph Wender, Director, U.S. Department of the Treasury’s Capital Projects Fund
  • Drew Clark (presenter and host), Editor and Publisher, Broadband Breakfast

Panelist resources

Joseph Wender currently serves as Director of the U.S. Department of the Treasury’s Capital Projects Fund.  Wender previously served for nearly 13 years on Capitol Hill, most recently as Senator Ed Markey’s Senior Policy Advisor, where he led a team covering a wide range of issues including telecommunications and infrastructure.  Wender also worked as then-Representative Markey’s Legislative Director.  Prior to working for Markey, Wender served as Counsel for the House Transportation and Infrastructure Committee.  He received his B.A. from Wesleyan University and graduated magna cum laude from Harvard Law School.

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

WATCH HERE, or on YouTubeTwitter and Facebook.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTubeTwitter and Facebook

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Funding

Decades-Old Legislation Can Play Supplement to Federal Broadband Infrastructure Money

The Community Reinvestment Act was expanded to include broadband investments in 2016.

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Photo of Jordana Barton-Garcia (far right)

CLEVELAND, June 27, 2022 – A decades-old piece of legislation can play an important and supplemental role to federal grants for broadband infrastructure, said panelists at the Pew Charitable Trust Broadband Access Summit Wednesday.

The Community Reinvestment Act was passed in 1977 to address redlining – the practice of denying financial services to individuals or groups based on where they are located, often along racial or soci-economic lines. The law encourages banks to make community development loans and investments in low- and moderate-income communities, rural, and tribal communities.

The legislation expanded to include investments in broadband infrastructure in 2016, after broadband was deemed an essential community service, said Jordana Barton-Garcia, principal of the social enterprise at Barton-Garcia Advisors. That means that it could play a key role in filling some of the broadband gaps, she said, as the federal government moves to distribute billions to the states under the Infrastructure Investment and Jobs Act.

In response to the pandemic, banks can now qualify to receive CRA credit for broadband deployment activities, said Barton-Garcia. Activities include loans, investments, and services that support digital inclusion or affordability programs.

Banks receive CRA credit for investing in community development projects and are reviewed on their CRA performance every three years. Their scores are open to the general public. If the bank receives a negative rating, it may prevent the bank from opening new branches and the bank will be expected to correct the rating.

Currently, the Federal Reserve is seeking comments on a joint agency proposal to strengthen and modernize CRA regulations.

A report published by the Federal Reserve Bank of Dallas in 2016 laid the groundwork for broadband to be included under the CRA. “Under the CRA, infrastructure investment includes facilitating the construction, expansion, improvement, maintenance or operation of essential infrastructure…  broadband is now a basic infrastructure needed in all communities.”

The CRA also includes workforce development investments, digital literacy projects, and technical assistance for small businesses.

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Funding

Researching the Impact of Digital Equity Funding Starts With Community Collaboration

Understanding the funding impact will ‘begin with the NTIA’s mandate to work with community partners.’

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Photo of Fallon Wilson

CLEVELAND, June 23, 2022 – Formulating research questions and making data readily accessible will contribute to the impact of federal and state digital equity funding, said experts speaking at the Pew Charitable Trusts’ Broadband Access Summit Wednesday.

It is essential to “formulate the research questions with communities” so that researchers will understand what is of interest and importance to the residents and local leaders, said Nicole Marwell from the University of Chicago,

Marwell said it is “critical” for researchers to consider how to “ask questions that bring answers that are more relevant for the community partners and then for [researchers] to try and figure out a way to make that interesting for a research audience.”

“We can demystify research,” said Fallon Wilson of the #BlackTechFutures Research Institute, speaking on how researchers can effectively work with community members. When data looks friendly to local leaders, they can go directly to their state broadband offices and advocate for their specific needs in specific areas.

“The best advocates are the people who advocate for themselves,” said Wilson.

Our role as researchers can play is to make data digestible for the non-academic, said Hernan Galperin of the University of Southern California.

The National Telecommunications and Information Administration requires states to work with community leaders and partners for the funds distributed by the Infrastructure Investment and Jobs Act.

Wilson praised this mandate, saying that understanding the funding impact will “begin with the NTIA’s mandate to work with community partners.”

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Funding

BEAD Program Initiative Should Utilize Analysis of Affordable Connectivity Program Enrollment

Analyzing ACP enrollment can help the BEAD program solve the ‘persisting gap between deployment and subscription.’

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Photo of John Horrigan

WASHINGTON, June 16, 2022 – The National Telecommunications and Information Administration should utilize adoption data from the Affordable Connectivity Program to maximize the effectiveness of its $42.5-billion infrastructure program, according to a broadband adoption expert.

“If the federal government’s investments in broadband connectivity are to be effective, different programmatic pieces must work together,” said John Horrigan, Benton Senior Fellow and expert on technology adoption and digital inclusion, in a blog post Thursday.

Analyzing the enrollment data of the Federal Communications Commission’s ACP can help the Broadband Equity, Access and Deployment program — a $42.5 billion fund for infrastructure to be handed to the states — solve the “persisting gap between deployment and subscription” in three ways, said Horrigan.

First, examining ACP enrollment in zip codes can help target which areas within cities are unaware of ACP. Second, understanding where ACP enrollment is over-performing can “launch productive inquiry into models that may be effective – and replicable.” Third, ACP enrollment findings can help structure community outreach initiatives for digital inclusion.

“The National Telecommunications and Information Administration has emphasized that a key goal of BEAD investments in digital equity,” said Horrigan. “State planners will need all the tools they can find to work toward that goal – and analysis of ACP performance is one such tool.”

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