The state Department of Commerce's request to use $53.3 million in federal American Rescue Plan funds for eight broadband grant projects and $2 million for broadband administrative expenses stalled in a legislative panel Wednesday.
The proposed broadband grant projects are in Ashley, Baxter, Chicot, Clark, Columbia, Hot Spring, Logan and Lonoke counties.
In addition, the state Department of Agriculture's request to use $1.8 million in federal Infrastructure and Investment and Jobs Act funds for three programs stalled in the Legislative Council's performance evaluation and expenditure review subcommittee.
The legislative subcommittee delayed action on these requests Wednesday morning, after Gov. Sarah Huckabee Sanders issued an executive order Tuesday night repealing former Gov. Asa Hutchinson's executive orders that created the Arkansas American Rescue Plan Steering Committee and the Governor's Infrastructure Planning Advisory Committee.
In May 2021, Hutchinson signed an executive order creating Arkansas' American Rescue Plan steering committee -- made up of nine Hutchinson administration officials and six state lawmakers -- 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.
The state now has a total of $442 million in unallocated American Rescue Plan funds after Sanders' executive order, said Department of Finance and Administration spokesman Scott Hardin said.
Arkansas' dedicated funding through the American Rescue Plan and Infrastructure and Investment and Jobs Act as set forth in executive order 21-08 and executive order 21-19 "shall not be distributed to an entity without further action by this administration and in accordance with Arkansas law," under Sanders' executive order.
The Arkansas Department of Finance and Administration "shall not consider any applications, which were submitted for ARPA or IIJA funding prior to or after the effective date of this order without further action by the administration and in accordance with Arkansas law," based on the executive order.
According to Sanders' executive order, the Hutchinson administration did not disburse the full amount of allocated federal funds provided to Arkansas, which "in turn allows this administration the opportunity to determine the most efficient and effective manner to disburse these funds in accordance with state and federal law," and it is necessary for the governor and her administration to completely review the outstanding federal funds dedicated to Arkansas through the two federal laws.
BROADBAND PROJECTS
The state Department of Commerce requested spending authority of $53.3 million in American Rescue Plan funds to fund eight broadband projects and $2 million in broadband administrative expenses for a total request of $55.3 million, state broadband office Director Glen Howie Jr. said in a letter dated Jan. 13 to the performance evaluation and expenditure review subcommittee.
The legislative subcommittee on Wednesday approved a motion by Sen. Jonathan Dismang, R-Searcy, to "pass over" the Department of Commerce's request to use American Rescue Plan funds for broadband grants.
He said he wants "to make sure that we are having the discussion we need to have about those funds" between legislative leaders and Sanders' administration.
Under Sanders' executive order, the policy of the governor and her administration is to consult with the General Assembly to make recommendations on how to distribute Arkansas' American Rescue Plan and Infrastructure and Investment and Jobs Act federal funds to ensure the distributions are made within the boundaries of federal and state law.
"This committee can come in and meet at any time to approve those," Dismang said. He said delaying action on this request will " just kind of hit the pause button and make sure we are doing what we need to do, and I fully anticipate that they will be funded."
The eight proposed broadband grant projects include:
• A $14.2 million grant to Wave Rural Connect LLC/Cox Communication LLC for a total project of $19.6 million in Logan County.
• A $10.9 million grant to Connect2First Internet for a total project of $14.7 million in Lonoke County.
• A $7.9 million grant to CableSouth Media LLC for a total project of $10.7 million in Ashley County.
• A $6.6 million grant to Ashley-Chicot Electric Cooperative Inc. for a total project of $8.8 million in Chicot County.
• A $5.2 million grant to Four States Fiber for a total project of $8 million in Columbia County.
• A $4.5 million grant to South Central Connect LLC/Central Arkansas Telephone Cooperative Inc. for a total project of $$6.1 million in Hot Spring County.
• A $2.1 million grant to NEXT Powered by NAFC for a total project of $2.9 million in Baxter County.
• A $1.6 million grant to South Central Connect LLC for a total project of $2.2 million in Clark County.
Howie noted in his letter that the Legislative Council in mid-December authorized the use of $93.8 million in American Rescue Plan funds for 14 broadband grant projects.
The U.S. Treasury has allocated $158 million to Arkansas from the capital projects fund authorized under the American Rescue Plan with $150.2 million of the award to be used for broadband projects, and the balance of $7.8 million to be used for broadband administrative expenses through 2026, Howie said in his letter.
So far, the Arkansas Rural Connect broadband grant program has awarded $490.4 million in broadband grants to 177 projects across the state.
In December 2021, Hutchinson signed an executive order creating a 14-member Governor's Infrastructure Planning Advisory Committee to recommend the best uses of federal funds under the Infrastructure Investment and Jobs Act. In November 2021, Biden signed the $1 trillion federal Infrastructure and Investment and Jobs Act into law.
The legislative subcommittee on Wednesday also passed over the state Department of Agriculture's request to use $1.7 million in federal Infrastructure and Investment and Jobs Act funds to support the Gulf Hypoxia Action Plan, $80,915 to support firefighter safety and interoperability, and $46,381 for the national dam safety program to provide staff and technical service provider support.
Hardin said a total of $2.7 billion in federal Infrastructure and Investment and Jobs Act funds have been announced for the state.
"As of [Wednesday], $1 billion has been obligated, much of which has been awarded (and appropriated) to the Department of Transportation," he said in a written statement.
"As we move forward, a resource similar to the Transparency website will be made available to track Arkansas' federal infrastructure funding."
CORRECTION: Department of Finance and Administration spokesman Scott Hardin said Arkansas has a total of $442 million in unallocated American Rescue Plan funds following Gov. Sarah Huckabee Sanders’ executive order repealing former Gov. Asa Hutchinson’s executive orders that created the Arkansas American Rescue Plan Steering Committee and the Governor’s Infrastructure Planning Advisory Committee. The department’s total amount of unallocated ARP funds was incorrect in an earlier version of this story.