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Louisiana to Receive $176.7 million in American Rescue Plan Funding to Expand Access to Affordable High-Speed Internet

On June 7, 2022, the United States Department of the Treasury announced the first group of plans approved under the American Rescue Plan’s Coronavirus Capital Projects Fund (CPF), which includes Louisiana’s. The CPF 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. The program’s top priority is to provide funding for projects involving reliable, affordable broadband infrastructure and other digital connectivity technology.

In addition to the $10 billion provided by the CPF, many governments are allocating funds from their State and Local Fiscal Recovery Funds (SLFRF) to meet the Biden-Harris Administration’s goal of connecting every American household to affordable, dependable high-speed internet. The American Rescue Plan, through these two programs, is providing one of the first large waves of federal broadband funding under the Biden-Harris Administration and laying the groundwork for future funding provided by the Infrastructure Investment and Jobs Act.

“We are grateful to be recognized and given approval by the Deputy Secretary of Treasury Wally Adeyemo as one of the first four states to have our State Broadband Grant Program (GUMBO) plan formally approved,” said Louisiana Governor John Bel Edwards. “The digital divide presents a great challenge to the people of Louisiana, but it’s a challenge that we will overcome. Today’s announcement is a testament to the pace at which our State Office of Broadband (ConnectLa) is working to develop first rate polices and plans to ensure everyone in Louisiana has access to affordable, high-speed internet.”

“The pandemic exposed longstanding challenges that workers and families face when they don’t have adequate access to the internet, especially those living in rural areas and other unconnected communities. That is why these broadband investments across the country are so critical,” said Deputy Secretary of the Treasury Wally Adeyemo. “This funding through the American Rescue Plan will help connect thousands of homes and businesses in Louisiana with affordable high-speed internet and help close the digital divide in communities where connectivity is needed most. Treasury commends Louisiana for targeting this funding to places where it is most urgently needed across the state.”

The state plans approved in this first group 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. Treasury designed its guidance to prioritize connecting families and businesses with poor and inadequate service – particularly those in rural and remote areas. 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.

Each state’s plan, in accordance with Treasury guidance, requires all service providers to participate in the Federal Communications Commission’s (FCC) new Affordable Connectivity Program (ACP). The ACP ensures that households can afford the broadband they require for work, school, healthcare, and other purposes by providing a monthly discount of up to $30. According to the FCC, approximately 48 million families—nearly 40% of households—are eligible for the program. President Biden and Vice President Harris recently announced their efforts to secure commitments from 20 leading internet service providers – covering more than 80% of the U.S. population – to provide high-speed, high-quality internet plans to all ACP-eligible households for no more than $30 per month.

As a result, these households will have internet access at no cost, bridging the digital divide for millions who could not previously afford internet service. Beyond the ACP, Treasury’s guidance requires recipients to consider whether the funded networks will be affordable to the target markets in their service area, and it encourages recipients to require that a funded project offer at least one low-cost option with sufficient speeds for a household with multiple users.

Treasury has worked closely with its interagency partners to implement this program, and in May 2022, it signed an interagency agreement with the FCC, National Telecommunications and Information Administration, and U.S. Department of Agriculture to share information and collaborate in the collection and reporting of data and metrics on broadband deployment projects.

The first CPF recipients intend to connect over 200,000 homes and businesses to affordable, dependable high-speed internet. Treasury has already approved over 30 Tribal government awards and intends to continue approving state and Tribal plans on a rolling basis. States must submit their plans to the Treasury by September 24, 2022. 

Louisiana was approved for $176.7 million (100 percent of its available CPF funding) to connect nearly 88,500 homes and businesses that currently lack internet access at speeds of 25/3 Mbps through the state’s new Granting Unserved Municipalities Broadband Opportunities (GUMBO) program, a multi-phase, broadband infrastructure competitive grant program. Louisiana estimates that projects funded by this CPF award will bridge the digital divide for approximately 25% of all locations in the state that lack high-speed internet access.

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