State

U.S. Treasury doles out $355M for broadband in three states

Arizona, Tennessee and Wyoming are the latest recipients of pandemic relief funding to build broadband infrastructure in areas that lack adequate service.

By Lindsay McKenzie

February 21, 2023

U.S. Treasury Department (Getty Images)

The U.S. Treasury last week announced the latest recipients of the Capital Project Fund, sending a combined $354.9 million to Arizona, Tennessee and Wyoming.

Arizona plans to invest $99.4 million of its Capital Project Fund allocation on two state-led broadband infrastructure programs — one focused on expanding high-speed internet access in the state’s 13 rural counties, while the other is focused on expanding broadband infrastructure in the state’s two urban counties.

“This funding will mean more resilient, faster internet and better connectivity for over 127,000 Arizona households and businesses,” Arizona Sen. Kyrsten Sinema said in a press briefing hosted by the White House and the Treasury on Tuesday.

Sinema said Arizona’s two grant programs will help “ensure that communities that have long been overlooked and underserved by the federal government, including Tribal communities throughout Arizona, have the opportunity to apply for and receive their fair share.”

Tennessee was approved to receive $185 million for high-speed internet infrastructure, which the state estimates will connect 50,000 households and businesses to broadband. It also plans to distribute funds through two grant programs – one for building out middle-mile infrastructure and another for last-mile infrastructure in remote areas.

Wyoming was awarded $70.5 million, which the state expects will connect 11,700 households and businesses. The state plans to distribute funds through its Connect Wyoming grant program for last mile infrastructure.

The Capital Project Fund was established by the American Rescue Plan to distribute $10 billion to states, territories and tribal governments for critical capital projects relating to work, education and health care. The Treasury began announcing state Capital Project Fund awards in June of 2022, and it has so far distributed $4.85 billion for high-speed internet expansion in 33 states. The Treasury said it will continue approving state and tribal plans on a rolling basis.