Arkansas receives nearly $50 million in federal funding for rural broadband expansion

September 5-11, 2022

By The Daily Record Staff

The U.S. Treasury Department on Aug. 30 announced the approval of $47.5 million for Arkansas to expand rural broadband access across the state under Gov. Hutchinson’s Arkansas Rural Connect (ARX) program initiative first announced in the summer of 2019.

The Treasury Department approved funding for Arkansas and four other states under the American Rescue Plan’s (ARP) Coronavirus Capital Projects Fund (CPF), which 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. 

A key priority of the program is to make funding available for reliable, affordable broadband infrastructure and other digital connectivity technology projects, furthering President Joe Biden’s goal for every American to have access to reliable, affordable high-speed internet, Treasury officials said. 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 Administration’s goal of connecting every American household to affordable, reliable high-speed internet.

Together, these two ARP programs and the Bipartisan Infrastructure Law approved by Congress in November 2021 are working in tandem to close the digital divide — deploying high-speed interest 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, but especially in rural, Tribal and low-income communities,” said Treasury Department 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 broadband bills for American households and businesses.”

The state plans approved in this round of funding for Arkansas, Connecticut, Indiana, Nebraska and North Dakota will support broadband infrastructure and are designed, upon project completion, to deliver reliable internet service that meets or exceeds symmetrical download and upload speeds of 100 megabits per second (Mbps), speeds that are needed for a household with multiple users to simultaneously access the internet to telework and access education and health monitoring. The Treasury designed its guidance to prioritize connecting families and businesses with poor and inadequate service — particularly those in rural and remote areas. The Treasury also requires states to explain why communities they have identified to be served with funds from the CPF have a critical need for those projects.

In accordance with the 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 ACP 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). The FCC estimates that about 48 million families are eligible for the program — nearly 40% of households. 

President Biden and Vice President Kamala Harris recently 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, these households will receive internet access at no cost, helping to close the digital divide for millions of Americans who could not previously have afforded internet service. Beyond the ACP, the Treasury’s guidance requires recipients to consider whether the federally funded networks will be affordable to the target markets in their service area 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.

The Treasury announced the first two rounds of state awards in June and July and will continue approving state and Tribal plans on a rolling basis. Arkansas, approved for $47.5 million estimates it will connect 5,500 homes and businesses by building high-speed internet service in rural and remote areas lacking reliable internet connections. 

The ARC grant program is a competitive grant program designed to fund broadband infrastructure projects in locations throughout Arkansas without reliable internet of at least 100/20 Mbps. Areas in Arkansas eligible for CPF funding through this program are generally less densely populated, more rural with have higher numbers of socioeconomically disadvantaged residents. CPF investments will support the state’s goal of closing the digital divide.

Following the Treasury Department’s announcement, Gov. Asa Hutchinson expressed his support for the approval of $47.5 million of new funding for broadband in Arkansas. 

“I appreciate the Treasury Department’s approval of this funding as we continue our work toward expanding broadband access in Arkansas,” Hutchinson said. “Ensuring access to high-speed internet presents a challenge in rural states, and this funding will provide us an opportunity to build on the work we’ve already done through the Arkansas Rural Connect Program.”

Hutchinson said the new funding will connect an estimated 5,500 homes and businesses to reliable broadband in rural and remote areas of Arkansas. This funding will be disbursed through the ARC program and will be subject to legislative appropriation for identified projects.

Earlier in July, Gov. Hutchinson and Arkansas Secretary of Commerce Mike Preston announced the hiring of Glen Howie as the state’s new Director of Broadband. Howie formerly worked in Louisiana’s Office of Broadband Development and Connectivity. 

As the broadband director, Howie will advise the governor and the secretary of commerce on key issues related to high-speed internet deployment throughout Arkansas. He will also lead the agency’s efforts for ACS and oversee a three-year plan to provide broadband access to 110,000 underserved households throughout all areas of the state.

“Broadband delivery has always been one of my top priorities. For Arkansas to reach its full economic potential, we need to do everything we can to close the digital divide and ensure that our citizens in rural communities have the same opportunities as their counterparts in larger cities,” said Gov. Hutchinson. “I believe Howie is the perfect choice to lead our efforts into the next phase of growth and implementation.”

Besides Arkansas, Connecticut was approved for $40.8 million and estimates it will connect 10,000 homes and businesses to affordable high-speed internet by focusing on low-income and multi-family homes and businesses and areas lacking reliable high-speed internet connections. The Connecticut Broadband Infrastructure Program, a competitive grant program, will fund broadband infrastructure designed to deliver service that supports the statewide goal of universal access to affordable, resilient and reliable internet access.

Indiana also received $187 million to connect an estimated 50,349 homes and businesses to affordable, reliable high-speed internet services. Indiana’s Next Level Connections Broadband Grant Program (NLC) is a competitive grant program, designed to provide funding to extend broadband infrastructure and service to areas and locations currently lacking access to at least 25/3 Mbps. 

In Nebraska, $87.7 million was allocated from the Treasury fund to connect 21,000 homes and businesses to affordable, reliable high-speed internet services. The Nebraska Broadband Bridge Program, a competitive grant program, will award grants for broadband infrastructure.

North Dakota was also approved for $45 million and estimates it will connect 3,965 homes and businesses to affordable, reliable high-speed internet service. The program aims to provide sustainable, future-proof connectivity to areas in the state lacking connectivity of at least 100/20 Mbps, including tribal lands. The state plans to collaborate with tribal organizations to identify solutions to address specific connectivity needs.  

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The U.S. Treasury Department on Aug. 30 announced the approval of $47.5 million for Arkansas to expand rural broadband access across the state under Gov. Hutchinson’s Arkansas Rural Connect (ARX) program.