The state of California has received a historic amount of funding for broadband as part of the federal government’s 2021 COVID-19 stimulus package.
The U.S. Department of the Treasury has approved $540.2 million for “high-speed Internet projects in California,” as part of the American Rescue Plan’s Capital Projects Fund (CPF), it said late last week — an amount considered to be “the largest single infusion of broadband funding to a state.” The Treasury Department started announcing awards to states last June and, so far, 39 states have been approved for investing roughly $5.9 billion from the CPF in “affordable, reliable high-speed Internet,” per the news release. Approvals will continue periodically. Among the takeaways:
- The state is expected to use the entirety of the funding it will receive to “connect approximately 127,000 homes and businesses to affordable, high-speed Internet,” the news release said.
“The $540.2 million Capital Projects Fund award is historic in size and scope and provides critical funding for the Last Mile Federal Funding Account, established by the CPUC according to Senate Bill 156,” Terrie Prosper, director of the California Public Utility Commission’s news and outreach office, told Industry Insider — California via email. “This program will fund last mile broadband infrastructure projects to connect unserved and underserved Californians with high-speed broadband service.”
The state’s Last Mile Broadband Expansion grant program is a “new competitive grant program designed to provide Internet access to areas of the state currently lacking access to reliable broadband at speeds of 25/3 Mbps.” White House American Rescue Plan Coordinator Gene Sperling and U.S. Rep. Pete Aguilar, whose Inland Empire district spans Rancho Cucamonga to Redlands, held an event to commemorate the occasion.
“Access to high-speed Internet is a necessity, not a luxury,” Aguilar told Industry Insider via email. “It’s going to help students reach their full potential, businesses better serve our communities and help people connect with one another.” - This is far from the first federal money the state has received to extend broadband. California received nearly $9 million in federal grants, the California Department of Technology announced in December, to advance Broadband for All to unserved and underserved areas. The money, CDT said, “adds to California’s historic $6.5 billion budget to achieve Broadband for All and expand broadband access, affordability, adoption and digital literacy and skills training throughout the state.” Find more information on California’s Broadband for All last-mile and adoption programs here.
- A search of the word “broadband” in the California State Contracts Register reveals an active procurement closing next month, from the California Department of Transportation (Caltrans). In a request for qualifications due by 10 a.m. May 9, Caltrans wants to hear from “qualified firms that may lead to the award of a contract for an Independent Cost Estimator and Construction Scheduler in support of (Construction Manager/General Contractor)” for the state’s Broadband Middle-Mile Initiative in Districts 1, 2 and 3. Districts 1 and 2 cover the state’s northernmost area; District 3 is immediately south of District 2 and extends as far south as Sacramento County. The estimated contract amount is between $1.6 million and $2.6 million; the estimated term is three years.
