Challenges in Alabama’s ARPA broadband projects discussed in oversight meeting

Sen. Greg Albritton, R-Atmore, the chair of the Senate Finance and Taxation General Fund Committee, listens to a budget presentation from the Alabama Community College System on March 7, 2023. The presentation came on the first day of the Alabama Legislature's 2023 regular session. (Brian Lyman/Alabama Reflector)

The Alabama’s American Rescue Plan Act Joint Oversight Committee discussed ongoing challenges in fund allocation and project implementation, praising some agencies but criticizing others.

Legislators reviewed the status of the ARPA funding expenditures in Thursday’s oversight commission meeting. Agencies have until Dec. 31, 2024 to obligate the funds, establishing agreements for specific projects. Once the funds are obligated, they must be spent by Dec. 31, 2026.

“The goal here is to make sure that we have all of these funds expended, i.e. spent, gone from our coffers, meaning that this infrastructure will be in the ground prior to Dec. 31, 2024. That’s 18 months away,” said Sen. Greg Albritton, R-Atmore, the chair of the Senate Finance and Taxation General Fund Committee.

The Alabama Department of Economic and Community Affairs (ADECA) provided updates on multiple programs aimed at expanding broadband infrastructure and other services across the state.

The statewide middle-mile project, utilizing up to $85 million from ARPA’s first distribution in 2022, was tasked with connecting nearly 3,000 miles of fiber. About 33% of the project has been completed. The grant agreement was signed in February 2023.

The second middle mile project, with an allocation of up to $245 million, focuses on extending fiber broadband infrastructure to institutions like schools, hospitals and government facilities. These projects will add 4,287 miles of middle-mile infrastructure, benefiting almost 800 institutions. The projects should be completed by February 2026 to complete their projects, with potential extensions up to the federal deadline of December 2026.

“Those extensions would only be offered if there was clear evidence that the project just needed a little more time to finish,” said Maureen Neighbors, digital expansion division chief for ADECA.

ADECA was also tasked with developing a last-mile broadband program with up to $191.89 million in ARPA funds. These projects will provide high-speed internet to 53,892 residents, businesses and community institutions, covering 5,429 route miles of fiber.

The annual report to the U.S. Treasury is due on July 1, detailing the progress of these programs. Quarterly reports are also being collected to monitor fund obligations. A follow-up meeting is scheduled for August or September to review the completed annual report and provide further updates.

Officials in the oversight commission questioned challenges, such as delays, because of financial audits or developing a sustainable fiscal plan. The committee also emphasized exploring lower-cost, emerging technologies to maximize the funds’ impact, particularly in small, rural communities.

Sen. Chris Elliot, R-Josephine, questioned Neighbors on why the state is spending significantly more money on building a fiber network if there is existing technology that is cheaper and can be deployed more quickly to rural areas.

“I ask this question again. Is the department looking at alternative technologies that are much lower cost to implement, especially as we look at much higher cost per rooftop?” Elliot asked in reference to Starlink, a satellite internet provider. Elliot added that when the state reaches rural areas, it may spend up to $20,000 per housing unit when they could have spent $600.

Neighbors maintained that they are administering the program according to federal guidance.

Albritton said that was an “unsatisfactory” response and said they may submit an official request for more information to ADECA Commissioner Kenneth Boswell on why less expensive, alternative technology is not getting considered.

“Our obligation is to make sure the money is used in the best way possible, and the concern here is that we’re dealing with old technology, and not in the future. We want to make sure that’s where we’re going in,” Albritton said.

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