SUMMARY OF TREASURY's ARPA CAPITAL PROJECTS FUNDS GUIDELINES

Background

On March 11, 2021, the American Rescue Plan Act ("ARPA") of 2021 was signed into law. The Capital Projects Fund ("CPF") provides $10 billion to address many challenges laid bare by the pandemic, especially in rural America, Tribal communities, and low- and moderate-income communities, helping to ensure that all communities have access to the high-quality modern infrastructure, including broadband, needed to access critical services. The Capital Projects Fund allows for investment in high-quality broadband infrastructure and other connectivity infrastructure, devices, and equipment. The main objectives of the CPF are:

• Support recovery from the COVID-19 public health emergency by strengthening and improving the infrastructure necessary for participation in work, education, and health monitoring that will last beyond the pandemic.
• Enable investments in capital assets designed to address inequities in access to critical services.
  
  
• Contribute to the Administration's goal of providing every American with the modern infrastructure necessary to access critical services, including a high-quality and affordable broadband internet connection. (See Capital Projects Fund | U.S. Department of the Treasury)

Timeline and Allocation

Award Allocations

Eligible states, territories, freely associated states, and Tribal governments will be able to apply for their allocation of the Capital Projects Fund through the Treasury Submission Portal. Allocations for States are available here, and allocations for Territories are available here. Allocations for Tribal governments are equal amounts of $167,504.

Timeline for Obligation of Funds

All funds must be expended by December 31, 2026, which is the end of the performance period. Recipients must return to Treasury any grant funds that are not used by the end of the performance period on December 31, 2026. In its sole discretion, Treasury may grant extensions to the period of performance upon request from
Recipients. (See pp. 12)

Eligible Uses

Broadband Infrastructure Projects The construction and deployment of broadband infrastructure designed to deliver service that reliably meets or exceeds symmetrical speeds of 100Mbps so that communities have the future-proof infrastructure to serve their long-term needs. (See pp. 3)

Broadband service options offered by Capital Projects Fund grant funding recipients must be affordable to their target markets in the proposed service area. Additionally, the service provider for a completed Capital Projects Fund-funded Broadband Infrastructure Project must participate in federal programs that provide low-income consumers with subsidies on broadband internet access services. (See pp. 4)

Digital Connectivity Technology Projects

The purchase and/or installation of devices and equipment to facilitate broadband internet access where the recipient has identified affordability as a barrier to broadband adoption and use. The recipient or subrecipient must maintain ownership of the equipment. (See pp. 5)

Permitted equipment and devices include laptops, tablets, and desktop computers that members of the public may use through a loan program or in public facilities, in addition to equipment installed as part of public wi-fi infrastructure (e.g., access points, repeaters, routers). (See pp. 5)

Multi-Purpose Community Facility Projects

This eligible use encourages the construction or improvement of buildings designed to jointly and directly enable work, education, and health monitoring located in communities with a critical need for the project. (See pp. 6)

Projects designed to: construct or improve full-service community schools that provide a comprehensive academic program to their students and adult education in the community at large; health monitoring to their students and the community; and workforce training or career counseling services that provide community members with the knowledge needed to engage in work, including digital literacy training programs. (See pp. 6)

Projects designed to: construct or improve libraries that provide public access to the internet for purposes including work, education, and health monitoring, such as offering digital skills programs and support for community members engaging in virtual learning. (See pp. 6)

Projects designed to: construct or improve community health centers that, in addition to engaging in health monitoring, provide a broader range of services to the communities they serve, including activities such as access to job counseling employment services, as well as health education classes or internship programs for medical professionals. (See pp. 6)

Projects must be designed to enable work, education, and health monitoring jointly and directly, but these activities need not be the exclusive function or purpose of the project. (See pp. 6)

Case-by-Case Review

In addition to the eligible Capital Projects identified above, recipients may propose a different use of funds providing greater flexibility in the use of CPF funds. Such uses must meet the statutory criteria, and recipients will be required to demonstrate that any such projects satisfy the following eligibility criteria:

1. The project invests in capital assets designed to enable work, education, and health monitoring directly. This includes investments in capital assets; projects that are designed to enable work, education, and health monitoring; and those projects directly enabling work, education, and health monitoring after completion of the project (for at least five years from Project completion)
2. The project will be designed to address a critical need that results from or was made apparent or exacerbated by the COVID-19 public health emergency.
3. The project is designed to address a critical need in the community to be served by it. In assessing whether a community has a need, Recipients may consider the existing capacity, service quality, and ability to meet any relevant health, safety, or performance standards for the relevant service to be provided. (See pp. 7-9)

Ineligible Uses

Ineligible uses of CPF funds include general infrastructure projects, such as highways, bridges, transit systems, and ports. Other ineligible uses are general construction and improvement of hospitals and traditional schools, which will be reviewed on a case-by-case basis. (See pp. 7)