A state panel on Thursday endorsed the state Department of Commerce’s request for $158 million in federal American Rescue Plan funds for broadband projects.
Arkansas' American Rescue Plan steering committee also advanced several other requests totaling more than $100 million in federal American Rescue Plan funds to address a variety of needs ranging from educating more nurses to substance abuse services.
Republican Gov. Asa Hutchinson appointed the steering committee — comprised of nine Hutchinson administration officials and six state lawmakers — in May 2021 to recommend the best uses of $1.57 billion in American Rescue Plan state fiscal recovery funds and $158 million in American Rescue Plan capital project funds.
In March 2021, President Joe Biden signed the $1.9 trillion American Rescue Plan Act that is designed to help the United States recover from the economic and health effects of the covid-19 pandemic.
Department of Commerce Secretary Mike Preston said in a letter to steering committee chairman Larry Walther that the U.S. Treasury’s capital project fund award to Arkansas specifies that it may only be used for broadband projects and related administrative expenses, and the treasury has allocated $150.2 million for broadband projects with the balance of $7.85 million to be used for broadband administrative expenses through 2026.
The broadband projects will be subject to the terms of the Arkansas Rural Connect grant program, and the Arkansas Economic Development Commission has completed a rule promulgation that will govern all capital project fund projects, he said.
“The broadband office is in the process of completing a competitive application process for broadband projects funded through CPF [Capital Projects Fund],” Preston wrote in his letter dated November 29. “We expect to finalize the grant awards next week so that we can obtain the necessary appropriation from [Arkansas Legislative Council| the following week. Our appropriation request to [Arkansas Legislative Council] will include a detailed list of all awardees, their project areas, and their award amounts.”
The Arkansas Rural Connect broadband grant program already has $396.5 million in grants to 163 projects across the state, said Chelsea O"Kelley, a spokeswoman for the Arkansas Economic Development Commission.