Legislative committee approves $280M IIJA allocation and $195M BEAD awards package
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Summary
The committee approved a $280 million IIJA appropriation for transportation projects and a $195 million package to fund Arkansas BEAD broadband grants, authorizing an extra-help position. State Broadband Director Glenn Howie described milestone-based payments and a four-year buildout requirement for awardees.
The Arkansas Legislative Council on Tuesday approved two major funding measures: a $280 million appropriation under the Infrastructure Investment and Jobs Act for the Department of Transportation and a $195 million appropriation to the State Broadband Office to fund broadband infrastructure grants and establish an extra-help position.
The measures were presented by staff as Section C items. Committee staff said C1 is a $280,000,000 IIJA appropriation to provide funds for DOT projects for the final quarter of the fiscal year. C2, from the Department of Commerce's State Broadband Office, seeks $195,000,000 to award broadband infrastructure grants through the Arkansas BEAD program and to add one extra-help position. Staff noted the packet includes a large report with maps and provisional awardees.
Glenn Howie, State Broadband Director, told the committee that 15 providers were ready to execute grant agreements in this tranche. "I will only bring forth provisional selectees when we are ready to execute a grant agreement with them," Howie said. He described program safeguards including a "fully comprehensive risk rated monitoring system" and milestone disbursements: "providers are only paid when they perform actions," he said, adding that payment is proportionate to build progress.
Howie also said states were instructed by federal partners not to accept certain post-award amendment requests from providers. "Starlink has ... been provisionally selected across the country wanting certain adjustments," Howie said, and "we have been strongly communicated to by the NTIA and U.S. Commerce that we're not to consider that amendment."
Committee members pressed on oversight and cost per location. One member cited a project where the grant equated to roughly $11,000 per broadband serviceable location; Howie explained such costs can reflect density, distance from an ISP's network and terrain, and said the office reviewed applicants' financial viability.
Staff told the committee the BEAD tranche uses approximately $126,100,000 to serve 51,566 broadband serviceable locations in this round. After questions, the committee moved and approved both C1 and C2 by voice vote.
The committee did not record a roll-call vote; members approved the measures by voice ('Aye', motion carries). The committee also noted the State Broadband Office expects federal guidance on use of excess BEAD funds and reported Arkansas has about $650,000,000 in remaining BEAD program funding to allocate pending federal direction.