Alabama’s efforts to extend access to broadband service to unserved areas received a boost Jan. 26 with the U.S. Treasury Department approval of the state’s plan for the Capital Projects Fund. The approval makes $191.8 million available for broadband expansion, Gov. Kay Ivey said.

The Alabama Department of Economic and Community Affairs (ADECA) will administer the funds as part of a grant program to extend broadband service statewide.

“Access to broadband is a necessity in today’s world, and I continue to make it a priority that our state has the full ability to be connected to high-speed internet,” Ivey said. “I often say that broadband expansion is a journey, not a short trip. These funds will enable us to take several more strides in that journey toward full access, no matter where you live in Alabama.”

The Alabama Legislature last year approved using the funds, which are part of the American Rescue Plan Act, for broadband expansion. ADECA created a plan outlining use of the funds and in September submitted it to the Treasury Department.

Ivey has stated her desire for Alabama to become a national model for broadband expansion.

Alabama Gov. Kay Ivey speaks at a recent event where a grant for broadband expansion was announced. (Hal Yeager / Governor’s Office)

ADECA’s Alabama Digital Expansion Division will roll out the competitive grant program modeled after the Alabama Broadband Accessibility Fund, which ADECA has administered since 2018.

Grants will be available for internet service providers to make “last-mile” connections to previously unserved homes, businesses and community institutions. Once connected, residents will have the ability to be customers of broadband providers.

ADECA will announce application details, deadlines and a workshop for the grant program. If awarded, providers will have about two years to complete the major infrastructure projects, which must provide connections of at least 100 megabits per second download/100 megabits per second upload.

Alabama Power has been coordinating with state leaders, rural electric cooperatives, telecommunications companies and others as it expands its fiber network to support grid reliability for customers. The project is providing opportunities to extend internet access to rural communities across the state.

“Under Gov. Ivey’s leadership and with a strong team effort among the Legislature, internet service providers and many others, the state has made progress in expanding access to high-speed internet,” ADECA Director Kenneth Boswell said. “While the need is still great, these funds will enable us to make further progress in closing the digital divide in Alabama.”

Kenneth Boswell, director of the Alabama Department of Economic and Community Affairs, speaks at an announcement of $191.8 million available for broadband expansion in Alabama. (Hal Yeager / Governor’s Office)

Since 2018, Ivey has awarded $63.9 million in state funds to support 100 projects through the Alabama Broadband Accessibility Fund. Once those projects are completed, access to broadband will be available to about 60,000 more households, businesses and community institutions that currently have no option to subscribe.

The agency developed a statewide broadband map and the Alabama Connectivity Plan, which guide expansion efforts into unserved areas. In September 2022, Ivey announced a grant to support broadband “middle-mile” network infrastructure to improve access for last-mile projects.