The U.S. Treasury said today that it is awarding $100 million in Capital Projects Fund (CPF) money to New York. The funding comprises 29% of the state’s CPF allocation.
The money will go to New York’s Affordable Housing Connectivity Program, a competitive grant program designed to fund high-speed broadband to and within low-income housing units.
According to the state, the New York Capital Projects Fund money will serve approximately 6% of locations in the state that still lack high-speed internet access.
The CPF has a budget of $10 billion nationwide that can be used for a variety of infrastructure investments, including broadband and others.
Program rules require network operators receiving funding to participate in the Affordable Connectivity Program, which provides a discount of $30 a month to low-income households for broadband service. Providers are required to provide speeds of at least 100 Mbps symmetrically. According to a press release, 37 states now have been approved to invest approximately $5.2 billion of CPF money in high-speed internet. The funding will reach more than 1.58 million locations, Treasury said.
The CPF fund was created in the American Rescue Plan Act in response to the COVID-19 pandemic, which highlighted the importance of broadband and the lack of service in some areas. The fund is one of several created by federal legislators in the last two years.
New York was making funding available for broadband even before the federal infusion, however. The state’s New NY Broadband program was funded by the state several years ago.