WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) pushed the Treasury Department to extend a critical deadline in order to ensure that localities across Virginia don’t lose out on essential funds needed to provide critical services to Americans, including making broadband more accessible during this public health crisis. The funding, which is set to expire on December 30, 2020, was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act supported by Sen. Warner.

“Households across the country continue to struggle to make it through this public health emergency without access to broadband. The COVID-19 pandemic has underscored the importance of broadband in accessing essential services, with an unprecedented number of Americans now reliant on internet connectivity to access public benefits, search for employment, learn and work from home, and access telehealth services,” wrote Sen. Warner. “Lack of broadband access has prevented Americans in underserved communities from meaningfully participating in the digital economy even before the pandemic, and under current circumstances, this lack of access threatens to have a significant and potentially long-lasting impact on existing economic, health, and educational disparities.”

Through the CARES Act, Congress appropriated $150 billion in funding for the Coronavirus Relief Fund (CRF), which awarded federal dollars to states and localities to help to cover pandemic-related expenses for which local governments did not originally budget. However, unclear guidance by the Treasury Department has stalled localities in their efforts to distribute some of these funds by the allocation deadline, which requires localities to obligate all their funds by December 30th. 

“While localities are working hard to obligate their CRF allocations before the December 30, 2020 deadline, I  have heard directly from local leaders across Virginia that unclear guidance on the allowed uses of the funding has delayed the obligation of funds to broadband projects. As a result, localities need more time to obligate this vital funding to communities that still lack reliable access to broadband,” Sen. Warner continued. “To expand the reach of CARES funding and enable more households to get connected through these projects, I respectfully request the Department of the Treasury to extend the December 30, 2020 deadline by which states and localities must obligate CARES funding.” 

In the letter, Sen. Warner also requested that the Treasury Department publish updated guidance making clear that states and localities can use this funding for broadband projects as long as project plans are finalized by the CARES Act deadline, making clear that states and localities can commence and continue projects if their plans have been finalized prior to the deadline.

Sen. Warner has long fought for increased access to broadband in the Commonwealth during his tenure as Governor and now in the Senate. In March, Sen. Warner led 17 of his colleagues in urging major internet service providers to take steps to accommodate the incoming unprecedented reliance on telepresence services. After this effort, a number of major internet service providers announced the adoption of practices to better accommodate the use of remote technologies. Earlier this year, Sen. Warner also introduced legislation to help ensure adequate home internet connectivity for K-12 students during COVID-19. He has also pushed the FCC to ensure that millions of Americans are made aware of their eligibility for the FCC’s Lifeline program – the primary federal program charged with helping low-income families obtain broadband and telephone services.

Text of the letter can be found below and a copy is available here.

The Honorable Steven T. Mnuchin

Secretary

U.S. Department of the Treasury

1500 Pennsylvania Ave NW

Washington, D.C. 20220 

Dear Secretary Mnuchin,  

Households across the country continue to struggle to make it through this public health emergency without access to broadband. The COVID-19 pandemic has underscored the importance of broadband in accessing essential services, with an unprecedented number of Americans now reliant on internet connectivity to access public benefits, search for employment, learn and work from home, and access telehealth services. Lack of broadband access has prevented Americans in underserved communities from meaningfully participating in the digital economy even before the pandemic, and under current circumstances, this lack of access threatens to have a significant and potentially long-lasting impact on existing economic, health, and educational disparities. 

The CARES Act provided $150 billion in funding for the Coronavirus Relief Fund (CRF), which serves as a critical lifeline for states and localities that are navigating the challenges of COVID-19. Many CRF recipients are using this funding to expand access to telehealth services, distance learning, and telework by deploying broadband in underserved areas. While localities are working hard to obligate their CRF allocations before the December 30, 2020 deadline, I have heard directly from local leaders across Virginia that unclear guidance on the allowed uses of the funding has delayed the obligation of funds to broadband projects. As a result, localities need more time to obligate this vital funding to communities that still lack reliable access to broadband.

To expand the reach of CARES funding and enable more households to get connected through these projects, I respectfully request the Department of the Treasury to extend the December 30, 2020 deadline by which states and localities must obligate CARES funding. I also request that you publish updated guidance that clarifies that states and localities are able to use CARES funding for broadband projects, even where the projects won’t be completed by, or even begun building by, the CARES Act deadline so long as they’ve finalized a project plan by that time.

I look forward to your response.

Sincerely, 

Mark R. Warner

U.S. Senator

###