Capital Projects Fund

California received $540.2 million from the American Rescue Plan Act’s Capital Projects Fund (CPF) to fund critical capital projects that enable work, education, and health monitoring in response to the public health emergency. In April 2023, the U.S. Department of the Treasury announced approval of California’s plan to use all $540.2 million of its award on the Last Mile Broadband Expansion program at the California Public Utilities Commission (CPUC) to increase access to affordable, reliable high-speed internet to 127,000 households and businesses through a new competitive grant program. Each of the internet service providers funded by the program will participate in the Federal Communications Commission’s Affordable Connectivity Program (ACP), which provides a $30 per month subsidy on internet service plans for low-income families, or a successor program designated by the CPUC should the ACP expire.

The CPUC opened the first application window on June 30, 2023, which closed on September 29, 2023.  A total of 484 grant applications were received from incumbent and new providers, public entities, and tribes, requesting $4.6 billion from the Last Mile Federal Funding Account (FFA)–primarily consisting of CPF funds and state General Fund. The CPUC has started making awards and will continue to issue awards over the next several months.

Project and Expenditure Report

Beginning January 31, 2022, pursuant to federal requirements, Project and Expenditure Reports for the Capital Projects Fund are due to the U.S. Department of the Treasury on a quarterly basis, once a state has obligated CPF funds by making awards.

A Performance Report covering the July 1 – June 30 period of the previous year is due annually by July 31, once quarterly reporting obligations have begun.

2023 Performance Report

2024 Performance Report

Eligible Cost Timeframe

All CPF funds must be expended by December 31, 2026.

Additional Information

Single Audit – California is considered as a single non-federal entity and is automatically subject to an annual audit. For more detailed information regarding the Single Audit, including the roles and responsibilities of all sub-recipients, please refer to the State and Local Fiscal Recovery Fund webinar and to the California State Auditor.

Treasury and Other Federal Resources

The U.S. Treasury Capital Projects Fund website contains several helpful documents, including the following:

  • Federal CPF Award Information:
  • U.S. Department of the Treasury – Capital Projects Fund Guidance. This guidance provides a summary of project eligibility and terms and conditions, as well as information about the process for applying for a grant under the CPF program.
  • U.S. Department of the Treasury – Capital Projects Fund Frequently Asked Questions (FAQ). This document contains answers to frequently asked questions regarding the Capital Projects Fund (CPF). Treasury will be updating this document periodically in response to questions received from stakeholders. Recipients and stakeholders should consult Treasury’s CPF Guidance for additional information.
  • U.S. Department of the Treasury – Capital Projects Fund Compliance and Reporting Guidance. This guidance provides additional detail and clarification about reporting and compliance responsibilities under the CPF program and should be read in concert with the Award Terms and Conditions, the Grant Agreement, the authorizing CPF statute, and other regulatory and statutory requirements, including regulatory requirements under the Uniform Guidance (2 CRF Part 200). Please see the Assistance Listing in SAM.gov under assistance listing number (formerly known as CFDA number), 21.029 for more information.
  • U.S. Department of the Treasury – Capital Projects Fund Project and Expenditure Report User Guide. This document provides information on using Treasury’s portal to submit the required CPF Project and Expenditure reports.
  • U.S. Department of the Treasury – Supplementary Broadband Guidance. In response to questions from recipients and internet service providers, Treasury is issuing the following guidance regarding the application of the Uniform Guidance to broadband infrastructure projects.
  • U.S. Department of the Treasury – Capital Projects Fund Grant Plan Best Practices. This document provides a brief overview of the CPF Grant and Program Plan submission process and identifies several best practices for recipients.
  • U.S. Chief Financial Officers Council’s Program Integrity – The Antifraud Playbook provides an overview of practical and actionable guidance to reduce fraud risk.
  • U.S. Government Accountability Office’s Standards for Internal Control in the Federal Government (“Green Book”)

Resources and Contacts

Webpage last updated July 25, 2024.