Treasury, Capital Projects Fund Guidance for Tribal Governments
Summary
Treasury's September 2021 guidance to Tribal governments on the Coronavirus Capital Projects Fund, the $10 billion fund created by Section 604 of the Social Security Act as added by Section 9901 of the American Rescue Plan Act of 2021. For Tribal governments the Application also serves as their Grant Plan. Eligible Tribal governments are the governing bodies on the list published under the Federally Recognized Indian Tribe List Act of 1994, and the State of Hawaii may apply for Native Hawaiian programs. Recipients may pass funds to Subrecipients such as municipalities, non-profits, co-operatives or private entities. Broadband projects are presumptively eligible if they deliver symmetrical 100 Mbps, or at least 100 Mbps download and 20 Mbps upload where that is impracticable, scalable to 100 Mbps symmetrical; Treasury encourages last-mile and fiber-optic projects.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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“Treasury, Capital Projects Fund Guidance for Tribal Governments.”
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GUIDANCE FOR THE CORONAVIRUS
CAPITAL PROJECTS FUND
FOR TRIBAL GOVERNMENTS
U.S. Department of the Treasury
GUIDANCE FOR THE CORONAVIRUS CAPITAL PROJECTS FUND
FOR TRIBAL GOVERNMENTS
U.S. Department of the Treasury | September 2021
INTRODUCTION
The U.S. Department of the Treasury (Treasury) is issuing this guidance regarding the
Coronavirus Capital Projects Fund (Capital Projects Fund), established by Section 604 of the
Social Security Act (the Statute), as added by Section 9901 of the American Rescue Plan Act of
2021 (American Rescue Plan). 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 Capital
Projects Fund program. This guidance may be updated, revised, or modified, and Treasury may
waive these standards to the extent permitted by law.
The American Rescue Plan appropriated $10 billion to Treasury to provide payments to States,
territories, freely associated states, and Tribal Governments “to carry out critical capital projects
directly enabling work, education, and health monitoring, including remote options, in response to
the public health emergency with respect to the Coronavirus Disease (COVID-19).” Treasury has
separately published the allocations available to each eligible entity in accordance with Section
604(b), which is available at: treasury.gov/CPF.
Although this is not a competitive grant program, States, territories, and freely associated states
must submit an Application and a Grant Plan; for Tribal Governments, the Application also serves
as their Grant Plan.
The Capital Projects Fund allows for investment in high-quality broadband infrastructure as well as
other connectivity infrastructure, devices, and equipment. Treasury encourages consultation with
the statewide entity or office that oversees broadband planning and implementation, where such
an entity or office exists, when planning for the use of Capital Projects Fund grant funding. In
addition to supporting broadband, it also provides flexibility for each State, territory, freely
associated state, and Tribal Government to make investments in other Capital Projects designed
to directly enable work, education, and health monitoring and that meet Treasury’s other criteria.
The Capital Projects Fund also provides flexibility for each Recipient to identify communities to be
served by Capital Projects, so long as the Recipient can demonstrate that said communities have
critical needs related to work, education, and health monitoring that the Capital Project intends to
address.
Treasury expects many Recipients will choose to use Capital Projects Fund grant funding for
Broadband Infrastructure Projects. The COVID-19 public health emergency highlighted that
access to high-quality internet can enable work, education, and health access, and that individuals
and communities that lack affordable access to such high-quality internet are at a marked
disadvantage. Investing in broadband for communities sensitive to or that have historically
experienced these inequities will be critical for improving digital equity and opportunity, especially
in the case of communities that currently lack access to the affordable, reliable, high-quality
broadband internet that is necessary for full participation in school, healthcare, employment, social
services, government programs, and civic life.
Guidance for the Coronavirus Capital Projects Fund for Tribal Governments
U.S. Department of the Treasury
1
I. AWARD TERMS AND CONDITIONS
This Section describes the overall structure and terms of the assistance, including key information
on Eligible Applicants, allocations, Capital Projects eligible for funding, eligible and ineligible costs,
labor practices, and the period of performance. This guidance is not intended to provide a
comprehensive listing of the award terms and conditions. Such terms and conditions will be
contained in the Grant Agreement.
A. ELIGIBLE APPLICANTS
Section 604 identifies States, certain territories and freely associated states, and Tribal
Governments, as the entities eligible to apply for a Capital Projects Fund grant (“Eligible
Applicants”).
• Eligible states (“States”) are each of the 50 states, the District of Columbia, and Puerto
Rico. 1
• The seven eligible territories and freely associated states are the United States Virgin
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the
Republic of the Marshall Islands, the Federated States of Micronesia, and the Republic of
Palau. 2
• An eligible Tribal government 3 is the recognized governing body of any Indian or Alaska
Native tribe, band, nation, pueblo, village, community, component band, or component
reservation, individually identified (including parenthetically) in the list published most
recently as of the date of enactment of this Act pursuant to Section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131). 4 The State of Hawaii, for
exclusive use of the Department of Hawaiian Home Lands and the Native Hawaiian
Education Programs to assist Native Hawaiians, is also eligible to apply for funding under
this funding category.
Capital Projects Fund Recipients may award funds to Subrecipients, such as other levels or units
of government (e.g., municipalities or counties), non-profits, or private entities. For example, for
Broadband Infrastructure Projects, Subrecipients may include co-operatives, electric utilities, and
other entities that build or operate broadband networks, including networks that are owned,
operated by, or affiliated with local governments. 5
1 Section 604(d)(2).
2 Section 604(b)(1)(B).
3 Section 604(d)(3) of the Capital Projects Fund Statute provides that the term “Tribal government” has the
same meaning given to the term in Section 602(g).
4 Available at https://www.federalregister.gov/documents/2021/01/29/2021-01606/indian-entities-recognized-
by-and-eligible-to-receive-services-from-the-united-states-bureau-of.
5 Subrecipients receive a subaward from a Recipient to carry out a Capital Project on behalf of the Recipient
with the Recipient’s federal award funding. Recipients are responsible for monitoring and overseeing
Subrecipients’ use of funds and other activities related to the award to ensure that the Subrecipient complies
with the statutory and regulatory requirements and the terms and conditions of the award. Recipients
remain responsible for reporting to Treasury on their Subrecipients’ use of funds.
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B. ALLOCATIONS
Section 604 provides for a total of $10 billion for Treasury to make grants to Eligible Applicants to
carry out critical Capital Projects and directs the Secretary of the Treasury to make grants to the
Eligible Applicants in accordance with the allocation formula set forth in the Statute.
Treasury separately published on its website the allocations for each Eligible Applicant, along with
the methodology used for implementing the statutory allocation formula. These documents can be
accessed at: treasury.gov/CPF.
C. PROJECT ELIGIBILITY
Section 604 authorizes Capital Projects Fund Recipients to use Capital Projects Fund grant funds
for critical Capital Projects that directly enable work, education, and health monitoring in response
to the COVID-19 public health emergency. Such Projects include remote options.
For a Capital Project to be an eligible use of Capital Projects Fund grant funds, it must meet all of
the following criteria:
1. The Capital Project invests in capital assets designed to directly enable work, education,
and health monitoring.
2. The Capital Project is designed to address a critical need that resulted from or was made
apparent or exacerbated by the COVID-19 public health emergency.
3. The Capital Project is designed to address a critical need of the community to be served by
it.
a) Presumptively Eligible Projects
• Broadband Infrastructure Projects. The construction and deployment of broadband
infrastructure projects (“Broadband Infrastructure Projects”) are eligible for funding under
the Capital Projects Fund program if the infrastructure is designed to deliver, upon project
completion, service that reliably meets or exceeds symmetrical download and upload
speeds of 100 Mbps. If it would be impracticable, because of geography, topography, or
excessive cost, for a Broadband Infrastructure Project to be designed to deliver services at
such a speed, the Project must be designed so that it reliably meets or exceeds 100 Mbps
download speeds and between 20 Mbps and 100 Mbps upload speeds and be scalable to
a minimum of 100 Mbps symmetrical for download and upload speeds. Treasury
encourages Recipients to focus on projects that will achieve last-mile connections.
Recipients considering funding middle-mile projects are encouraged to have commitments
in place to support new and/or improved last-mile service.
Recipients are encouraged to prioritize investments in fiber-optic infrastructure where
feasible, as such advanced technology better supports future needs. Treasury also
encourages Recipients to prioritize Projects that involve broadband networks owned,
operated by or affiliated with local governments, non-profits, and co-operatives—providers
with less pressure to generate profits and with a commitment to serving entire
communities.
Treasury strongly encourages that the chief executive of the Eligible Applicant and/or the
authorized representative consult with the statewide entity or office that oversees
broadband planning and implementation, where such an entity or office exists, when
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planning for the use of Capital Projects Fund grant funds.
Recipients are encouraged to address affordability as a barrier to full use of the internet
when developing their Program Plans for Broadband Infrastructure Projects. Affordability
of broadband is necessary to directly enable its use by all Americans. Therefore, when
selecting Broadband Infrastructure Projects for Capital Projects Fund grant funding,
Recipients are required to consider whether the broadband service options offered by
recipients of Capital Projects Fund grant funding will be affordable to their target markets in
the proposed service area. Recipients are also encouraged to consult with the community
as part of the process they undertake to consider affordability and are required to publish
the description of their process for considering affordability in their project selection
process. Additionally, Recipients are encouraged to require that services provided by a
Capital Projects Fund-funded Broadband Infrastructure Project include at least one low-
cost option offered at speeds that are sufficient for a household with multiple users to
simultaneously telework and engage in remote learning. Recipients will be required to
report pricing data as part of program performance and monitoring.
Recipients are also required to ensure that the service provider for a completed Capital
Projects Fund-funded Broadband Infrastructure Project participate in federal programs that
provide low-income consumers with subsidies on broadband internet access services.
Initially, Recipients will be required to ensure that completed service offerings funded by
the Capital Projects Fund allow subscribers in the service area to utilize the Federal
Communications Commission’s (FCC) Emergency Broadband Benefit (EBB) program.
Once the FCC’s EBB program has terminated, Treasury will identify any other program(s)
that service providers must participate in to meet this requirement. Treasury will not
identify programs that would require the service provider to be designated as an eligible
telecommunications carrier.
Investments in Capital Projects must be carried out in ways that comply with applicable
federal laws, including the 2019 National Defense Authorization Act (NDAA). Among other
requirements contained in 2 C.F.R. Part 200, 2 C.F.R. 200.216 implements certain
provisions of the NDAA and contains prohibitions on the use of grant funds to procure or
obtain certain telecommunications and video surveillance services or equipment provided
or produced by designated entities, including certain entities owned or controlled by the
People’s Republic of China. In addition, 2 C.F.R. 200.471 provides that certain
telecommunications and video surveillance costs associated with 2 C.F.R. 200.216 are
unallowable.
Recipients must explain why the communities they have identified to be served by
Broadband Infrastructure Projects have a critical need for those projects as is related to
access, affordability, reliability, and/or consistency. Additional discussion and explanation
of critical needs can be found in Section I.C.c.3. Recipients are encouraged to prioritize
projects that are designed to provide service to households and businesses not currently
served by a wireline connection that reliably delivers at least 100 Mbps of download speed
and 20 Mbps of upload speed. To the extent Recipients are considering deploying
broadband to locations where there are existing enforceable federal or state funding
commitments for reliable wireline service at speeds of at least 100 Mbps of download
speed and 20 Mbps of upload speed, the Recipient should ensure that the Capital Projects
Fund grant funding will not be used for costs that will be reimbursed by the other federal or
state funding stream(s). That is, Capital Projects Fund grant funds must be used only for
complementary purposes. Recipients must ensure there is additional public benefit and a
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justification for using additional public funding to deploy to those locations. Treasury
encourages Recipients to use all available federal and state datasets when making these
determinations.
When determining the communities to be served by Broadband Infrastructure Projects,
Recipients may choose to consider any available data including but not limited to
documentation of existing broadband internet service performance, federal and/or state
collected broadband data, user speed test results, interviews with community members
and business owners, reports from community organizations, and any other information
they deem relevant.
In evaluating such data, Recipients may take into account a variety of factors, including
whether users actually receive internet service at or above speed thresholds at all hours of
the day, whether factors other than speed such as latency or jitter, or deterioration of the
existing connections make their user experience unreliable, and whether the existing
service is being delivered by legacy technologies, such as copper telephone lines (typically
using Digital Subscriber Line technology) or early versions of cable system technology
(DOCSIS 2.0 or earlier), and other factors related to the services to be provided by
Broadband Infrastructure Projects. Recipients may consider the actual experience of
current broadband customers when making their determinations; and whether there is a
provider serving the area that advertises or otherwise claims to offer broadband at a given
speed is not dispositive.
• Digital Connectivity Technology Projects. The purchase and/or installation of
devices and equipment to facilitate broadband internet access are eligible for funding
under the Capital Projects Fund program where affordability has been identified by the
Recipient as a barrier to broadband adoption and use. Permitted devices and
equipment include laptops, tablets, and desktop personal computers 6 for distribution
to members of the public through a short- or long-term loan program or to be made
available for use in public facilities. Permitted equipment includes equipment installed
as part of public wi-fi infrastructure (e.g., access points, repeaters, routers).
Ownership of the equipment must be maintained by the Recipient or a Subrecipient.
Recipients must explain why the communities they have identified to be served by Digital
Connectivity Technology Projects have a critical need for those projects. Additional
discussion and explanation of critical needs can be found in Section I.C.c.3.
When determining the communities to be served by Digital Connectivity Technology
Projects, Recipients may choose to consider any available data including but not limited to
documentation of existing broadband internet service performance and pricing; federal
and/or state collected broadband data; user speed test results; federal and/or state
collected data, such as the American Community Survey, the U.S. Department of
Commerce – National Telecommunications and Information Administration’s Indicators of
Broadband Need Map, or the U.S. Department of Housing and Urban Development’s
6 Devices, such as phones and televisions, that do not permit users to fully participate in work (e.g., by
providing access to fully functional remote video conferences, and necessary work applications), school
(e.g., by allowing full participation in remote video classrooms and group projects, as well as the ability to
draft and edit complex writing assignments), and health monitoring activities would not qualify as eligible
Digital Connectivity Technology Projects under the Capital Projects Fund program.
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Qualified Census Tracts, related to internet use, device ownership, income, and poverty;
interviews with community members and business owners; reports from community
organizations; and any other information they deem relevant.
• Multi-Purpose Community Facility Projects. Projects to construct or improve buildings
that are designed to jointly and directly enable work, education, and health monitoring are
eligible for funding under the Capital Projects Fund program. Examples of Multi-Purpose
Community Facility Projects are:
• Projects to construct or improve full-service community schools that provide a
comprehensive academic program to their students and adult education in the
community at large; health monitoring to their students and the community; and
workforce training or career counseling services that provide community members with
the knowledge needed to engage in work, including digital literacy training programs.
• Projects to construct or improve libraries that provide public access to the internet for
purposes including work, education, and health monitoring such as offering digital skills
programs and support for community members engaging in virtual learning.
• Projects to construct or improve community health centers that, in addition to engaging
in health monitoring, provide a broader range of services to the communities they
serve, including activities such as access to job counseling employment services, as
well as health education classes or internship programs for medical professionals.
Projects must be designed to jointly and directly enable work, education, and health
monitoring, but these activities need not be the exclusive function or purpose of the
Project. For example, a building, such as a library or community center providing the
public with access to computers with high-speed internet service, can meet this criterion
even if the completed Project is also used for other functions, such as community
recreational activities.
Recipients must explain why the communities they have identified to be served by Multi-
Purpose Community Facility Projects have a critical need for such projects.
When determining the communities to be served by Multi-Purpose Community Facility
Projects, Recipients may choose to consider any available data, including, but not limited
to federal and/or state collected data, such as the American Community Survey or the U.S.
Department of Housing and Urban Development’s Qualified Census Tracts, related to
internet use, device ownership, income, poverty, health, education, and employment;
interviews with community members and business owners; reports from community
organizations; documentation of existing facilities providing similar or identical services to
those the Capital Project is intended to provide; and any other information they deem
relevant.
Treasury will require Recipients to commit that the Capital Projects will provide services or
activities that directly enable work, education, and health monitoring for at least five years
from the completion of the Project.
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b) Ineligible Projects and Projects Not Presumed to be Eligible
General infrastructure projects, such as highways, bridges, transit systems, and ports, are
ineligible under the Capital Projects Fund program. General construction and improvement of
hospitals and traditional schools are not presumed to be eligible, although, there may be
opportunities for such projects to receive funding under the Capital Projects Fund program if they
meet the project eligibility criteria. Such projects will be reviewed on a case-by-case basis.
c) Case-by-Case Review
In addition to the presumptively eligible Capital Projects described above, a Recipient may
propose a different use of funds. Such a use must meet each of the statutory criteria. The
Recipient must demonstrate that its Project satisfies the criteria below.
1. The Project invests in capital assets designed to directly enable work, education,
and health monitoring.
Investments in Capital Assets
Capital Project or Project means the construction, purchase, and installation of, and/or
improvements to capital assets 7 where the costs of such assets are capitalized or depreciated,
including ancillary costs necessary to put the capital asset to use.
Examples of capital assets include buildings, towers, digital devices and equipment, fiber-optic
lines, and broadband networks. Examples of ancillary costs include project costs related to
project planning and feasibility, broadband installation, and community engagement, broadband
adoption, digital literacy, and training associated with a planned or completed Project funded by
the Capital Projects Fund program.
Projects that are Designed to Directly Enable Work, Education, and Health
Monitoring
A Capital Project is designed to directly enable all three activities (work, education, and health
monitoring) if the Project is designed to, upon completion, be used by community members while
engaged in work, education, and health monitoring or activities to obtain the knowledge or skills to
engage in such activities.
Projects must directly enable all three activities of work, education, and health monitoring.
• Work: Activities to help community members engage in employment, search for
employment, and/or develop the requisite skills and knowledge to become employed (e.g.,
participate in career counseling programs, workforce training programs, as well as gain
access to internet websites to search for and apply to jobs).
A Project is not considered to directly enable work simply because individuals are
employed at the location of the completed Capital Project; rather, the asset itself must
enable new and further employment opportunities beyond employment at the location of
7 Treasury does not intend for the definition of capital assets, as defined under Uniform Guidance, to limit
eligible investments under Capital Projects.
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the completed Project. In addition, job creation related to project construction and
operations (e.g., employment of construction workers) would not satisfy this requirement.
• Education: Activities to acquire knowledge and/or skills, undertaken as part of a person’s
participation in school, an academic program, extracurricular program, social-emotional
development program for students or youths, internship, or professional development
program, or in another educational environment.
• Health Monitoring: Services to monitor an individual’s health, including with respect to
either physical or behavioral health.
Health monitoring activities are often conducted as part of telemedicine appointments with
a healthcare provider, but these activities can be conducted in a variety of other ways,
such as during in-person appointments with health care providers or as part of community
health screening programs.
Recipients must show that the Project is designed to jointly and directly enable work, education,
and health monitoring; however, these activities need not be the exclusive function or purpose of
the Project. For example, construction of a building, such as a community center or library
providing the public with access to computers with high-speed internet service, can meet this
criterion even if the completed Project is also used for other functions, such as community
recreational activities.
To directly enable all three activities, the result of the Capital Project should be assets that offer
affordable services or are otherwise publicly accessible (e.g., public wi-fi).
Directly Enabling Work, Education, and Health Monitoring after Completion of the
Project
Project eligibility is defined by the services that the completed Projects are designed to provide.
The exact services or activities may change over time, so long as the Capital Project directly
enables all three activities of work, education, and health monitoring for at least five years from the
completion of the Project.
2. The Project will be designed to address a critical need that results from or was made
apparent or exacerbated by the COVID-19 public health emergency.
Projects must be designed to address impediments to community members’ ability to directly
engage in work, education, and health monitoring that resulted from or were made apparent or
exacerbated by the COVID-19 public health emergency.
Recipients are expected to first identify one or more impediments to participation in work,
education, and health monitoring that resulted from or were made apparent or exacerbated by the
COVID-19 public health emergency and then identify how any such impediments would be
remediated with the Project.
Recipients have broad latitude to identify the specific conditions and circumstances that have
impeded their community members’ ability to access work, education, and health monitoring
activities and services during the COVID-19 public health emergency and must be prepared to
provide a description of such conditions and circumstances in their Application. Recipients are
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encouraged to solicit input from and engage with community members when identifying these
circumstances and conditions.
Treasury recognizes that there are some common impediments that were experienced by
communities across the country. As an example, potential exposures to the virus and public
health mitigation measures have made safely accessing work, school, and health monitoring
resources more difficult for many communities during the COVID-19 public health emergency.
The pandemic laid bare the limitations on access to high-quality, affordable, and reliable internet
experienced by many Americans, including individuals living in rural America, Tribal communities,
and low- and moderate-income communities, and increased reliance on high-quality internet for
access to services is expected to remain a feature of American life even after the pandemic
subsides. As such, Projects that enable remote access to services (e.g., Broadband Infrastructure
Projects, public computer facilities) meet the requirement to remediate a need that resulted from
or was made apparent or exacerbated by the COVID-19 public health emergency.
3. The Project is designed to address a critical need in the community to be served by
it.
The Project must be designed to address a critical need for the Project in the community to be
served by it. Communities with a critical need for the Project include those that do not have
access to the resources or services that are provided by the Project, whether because of the
physical absence or insufficiency within the community of the type of resources provided by the
Project, or because access to those resources is unaffordable, resulting in impediment(s) to
participation in work, education, and health monitoring that were caused or exacerbated by the
COVID-19 public health emergency. 8
Recipients have broad latitude to identify communities with a critical need for a Capital Project. In
assessing whether a community has such a need, Recipients may consider the existing capacity,
service quality, and ability to meet any relevant health, safety, or performance standards for the
relevant service to be provided.
Recipients are strongly encouraged to consider individuals and communities in greatest need in
identifying communities to be served by a Capital Project. 9 Historically disadvantaged
communities have experienced disproportionately poor work, education, and health outcomes, in
part due to lack of access to equitable resources and opportunities in these areas.
When determining the individuals and communities with a critical need that will be served by a
proposed Capital Project, Recipients may choose to consider any available data including federal
and/or state collected data; interviews with community members and business owners; reports
from community organizations; documentation of existing facilities providing similar or identical
services to those the Capital Project is intended to provide; and any other information they deem
relevant.
8 Tribal Governments may identify communities with a critical need that are or are not located on Tribal
lands.
9 Targeting relief is in line with Executive Order 13985, “Advancing Racial Equity and Support for
Underserved Communities Through the Federal Government,” which laid out an Administration-wide priority
to support “equity for all, including people of color and others who have been historically underserved,
marginalized, and adversely affected by persistent poverty and inequality.”
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D. ELIGIBLE AND INELIGIBLE COSTS
Allowable costs are determined in accordance with the cost principles identified in 2 C.F.R. Part
200, Subpart E. 10 Federal funds committed to an award may only be used to cover allowable
costs incurred during the period of performance and for allowable closeout costs incurred during
the grant closeout process. Cost sharing is not a requirement for the use of these funds.
a) Program Administrative Costs
Absent Treasury’s express consent, Program Administrative Costs over the period of performance
may not exceed the greater of five (5) percent of the total amounts of the grant received under the
Capital Projects Fund, or $25,000. The five percent limitation on administrative expenses includes
the combined total of indirect costs and direct administrative costs charged to an award. The term
“Program Administrative Costs” is defined as the costs of administering the Capital Projects Fund
grant funding by a Recipient, providing technical assistance to potential Subrecipients, and
complying with grant administration and audit requirements. Recipients may request a higher limit
on Program Administrative Costs by providing a rationale for the use of additional funds for
administrative purposes.
Consistent with 2 C.F.R. 200.414(f), Recipients that do not have a current negotiated indirect cost
rate may elect to charge indirect costs to an award pursuant to a de minimis rate of up to ten
percent of modified total direct costs (MTDC) for program administration, in which case a
negotiated indirect cost rate agreement is not required.
Recipients may use their negotiated cost rate agreement so long as the total of all administrative
costs incurred by the Recipient and any subrecipient, whether direct or indirect costs, do not
exceed any applicable limit on Program Administrative Costs.
As described in 2 C.F.R. 200.403, costs must be consistently charged as either indirect or direct
costs but may not be double charged or inconsistently charged as both.
b) Project Costs
A Recipient may use funds to cover costs incurred during the period beginning March 15, 2021,
for one or more eligible Projects. For pre-award costs incurred after March 15, 2021, but prior to
execution of the Grant Agreement, Recipients are required to provide reasonable assurance that
the costs were incurred pursuant to the negotiation of and in anticipation of the Capital Projects
Fund award and are necessary for the efficient and timely performance of the Project. Such costs
are allowable only to the extent they would have been allowable if incurred after the date of the
Capital Projects Fund award and only with the written approval of Treasury.
Project costs are not limited to new construction. For example, Project costs can involve
improvements and repairs to buildings to permit the buildings to be used for eligible purposes.
Eligible Project Costs. Below is a non-exhaustive list of eligible costs:
10 The government has established a set of principles for determining eligible or allowable costs. Allowable
costs are determined in accordance with the cost principles applicable to the entity incurring the costs. For
example, the allowability of costs incurred by State, local or Tribal Governments is determined in
accordance with the provisions of 2 C.F.R. Part 200, Subpart E.
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• Costs associated with completing the grant or Application;
• Pre-project development costs and uses, including data-gathering, feasibility studies,
community engagement and public feedback processes, equity assessments and planning,
and needs assessments; permitting, planning, architectural design, engineering design, and
work related to environmental, historical, and cultural reviews;
• Costs of repair, rehabilitation, construction, improvement, and acquisition of real property,
equipment (e.g., devices and office equipment), and facilities (e.g., telecommunications
equipment, including infrastructure for backhaul, middle, and last mile networks);
• Cost of long-term leases (for terms greater than one year) of facilities required to provide
qualifying broadband service, including indefeasible right-of-use (IRU) agreements and
capital leases;
• Personnel costs including salaries and fringe benefits for staff and consultants required for
carrying out a Capital Project (such as project managers, program directors, subject matter
experts, equity consultants, grant administrators, financial analysts, accountants, and
attorneys);
• Ancillary costs necessary to operationalize and put the capital assets to full use, including
costs to increase broadband adoption and improve digital literacy;
• Costs associated with monitoring of and reporting on Projects in compliance with Treasury
requirements, including award closeout costs;
• Costs associated with collecting and measuring performance data and conducting activities
needed to establish and maintain a performance management and evaluation regime related
to Projects funded by the Capital Projects Fund program.
Ineligible Project Costs. Unless otherwise permitted by Treasury, Capital Projects Fund grant
funds may not be used for the following purposes:
• Acquisition of spectrum licenses;
• Operating expenses, other than grant administration costs;
• Short-term operating leases;
• Payment of interest or principal on outstanding debt instruments, or other debt service
costs incurred prior to March 15, 2021;
• Fees or issuance costs associated with the issuance of new debt;
• Satisfaction of any obligation arising under or pursuant to a settlement agreement,
judgment, consent decree, or judicially confirmed debt restructuring plan in a judicial,
administrative, or regulatory proceeding; or
• To support or oppose collective bargaining. This does not affect the ability to use funds to
comply with 41 C.F.R. 60-1.4.
E. STRONG LABOR PRACTICES IN CONSTRUCTION
It is important that investments in Capital Projects be carried out in ways that produce high-quality
infrastructure, avert disruptive and costly delays, and promote efficiency. Projects funded by the
Capital Projects Fund must comply with all applicable federal laws and regulations, and with all
requirements for state, local, and Tribal laws and ordinances to the extent that such requirements
do not conflict with federal laws.
While the federal Davis-Bacon Act prevailing wage rate requirements do not apply to Projects
funded solely by the Capital Projects Fund program, except for Capital Projects Fund-funded
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construction Projects undertaken by the District of Columbia, 11 Treasury encourages Recipients to
ensure that Capital Projects incorporate strong labor standards, including project labor
agreements and community benefits agreements that offer wages at or above the prevailing rate
and include local hire provisions, not only to promote effective and efficient delivery of high-quality
infrastructure projects but also to support the economic recovery through strong employment
opportunities for workers. Using these practices in construction projects may help to ensure a
reliable supply of skilled labor that would minimize disruptions, such as those associated with
labor disputes or workplace injuries. Treasury further encourages Recipients to prioritize
employers (including contractors and subcontractors) without recent violations of federal and state
labor and employment laws as a further measure that may minimize project disruptions and
delays.
Among other requirements contained in 2 C.F.R. 200, Appendix II, all contracts made by a
Recipient or Subrecipient in excess of $100,000 that involve employment of mechanics or laborers
must include a provision for compliance with certain provisions of the Contract Work Hours and
Safety Standards Act, 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor
regulations (29 C.F.R. Part 5). And as noted below in Section III.C, Treasury will seek information
from Recipients on their workforce plans and practices related to Capital Projects Fund Projects,
as well as information about subcontracted entities.
Further, Treasury encourages Recipients to prioritize in their procurement decisions employers
who can demonstrate:
• Their workforce meets high safety and training standards, including professional
certification, licensure and/or robust in-house training;
• Prioritization in hiring of local workers and/or workers from historically disadvantaged
communities;
• Direct employment of their workforce, or policies and practices in place to ensure
contractors and subcontractors meet high labor standards; and
• No recent violations of federal and state labor and employment laws.
F. PERIOD OF PERFORMANCE
All funds must be expended by December 31, 2026, which is the end of the period of
performance. Recipients must return to Treasury any grant funds that are not used by the end of
the period of performance on December 31, 2026. Treasury may, in its sole discretion, grant
extensions to the period of performance upon request from Recipients.
11 Neither the Davis-Bacon Act nor Davis-Bacon Act related provisions requirements apply to projects
funded solely with award funds from the Capital Projects Fund, except for Capital Projects Fund-funded
construction projects undertaken by the District of Columbia. The Davis-Bacon Act specifically applies to the
District of Columbia when it uses federal funds (Capital Projects Fund or otherwise) to enter into contracts
over $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings
or public works. Recipients may be subject to the requirements of the Davis-Bacon Act, when Capital
Projects Fund grant funds are used on a construction project in conjunction with funds from another federal
program that requires enforcement of the Davis-Bacon Act. Additionally, corollary state prevailing-wage-in-
construction laws (commonly known as “baby Davis-Bacon Acts”) may apply to projects.
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II. GRANT PROCESS FOR TRIBAL GOVERNMENTS
This Section provides a summary of the steps for Tribal Governments, as defined, to access
Capital Projects Fund grant funds. The process for accessing Capital Projects Fund grant funding
involves the following steps:
1. Submission of an Application to verify Applicant eligibility and eligible use of funds.
2. Execution of a Grant Agreement with Treasury.
3. Submission of certain additional information (for complex Applications and for Eligible
Applicants that do not opt for a “presumptively eligible” use of funds).
A. APPLICATION CONTENTS
a) Requested Grant Amount
Eligible Applicants must specify the amount of Capital Projects Fund grant funding that they wish
to receive, not to exceed $167,504.
b) Designation Letter
If anyone other than an Eligible Applicant’s duly authorized Tribal official is submitting the
Application, then the Application must include a designation letter signed by the Eligible
Applicant’s duly authorized Tribal official that identifies and delegates authority, as appropriate,
to an authorized representative. The authorized representative is the individual who will sign the
necessary certifications, submit the Application, and sign the Grant Agreement on behalf of the
Eligible Applicant. Authorized representatives may include organizations or persons that apply
on behalf of the Eligible Applicant. In the event of a delay receiving the designation letter, the
authorized representative may still apply on behalf of the Eligible Applicant, but the grant
payment will be withheld until Treasury receives the designation letter. If the designation letter is
not received by June 1, 2022, the Eligible Applicant’s grant award will be forfeited.
c) Points of Contact
The authorized representative may designate one or more points of contact to communicate with
Treasury regarding the Capital Projects Fund Application.
d) Eligibility and Payment Information
The Eligible Applicant must provide its IRS Employer Identification Number (EIN) and its Dun &
Bradstreet D-U-N-S Number, a unique nine-digit identification number linked to the Eligible
Applicant’s physical location. Eligible Applicants will also be required to provide bank account
information necessary to make Capital Projects Fund grant payments, and may be asked to
provide additional information to allow Treasury to validate eligibility.
e) Proposed Uses
Eligible Applicants must provide a short description of and identify the proposed use for the
grant funds, either by:
• Selecting one of the presumptively eligible uses in the Application form;
• Selecting “Other” and briefly describing the eligible use. If this option is selected,
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Treasury will review the proposed eligible use on a case-by-case basis and may request
additional information. Case-by-case reviews may add time to the Application review
process; or
• Selecting “Additional Time Required” and providing Treasury with the eligible use at a
later date. If this option is selected, the Eligible Applicant may still sign a Grant
Agreement, but payment will be withheld until the Eligible Applicant notifies Treasury of
its proposed uses of the grant funds. If the Eligible Applicant fails to notify Treasury of its
proposed uses by June 1, 2022, Treasury may deem its Capital Projects Fund grant
forfeited.
B. SUBMITTING APPLICATIONS
Accessing the Capital Projects Fund Portal. To gain access to the Capital Projects Fund Portal
and submit an Application, the authorized representative and/or points of contact (see II.A.c), as
appropriate, must have a registered username and password through the ID.me identity
verification service. ID.me is an approved Treasury service provider. ID.me registration requires
a one-time identity verification process that involves validation of multiple forms of identification
(e.g., passports) using a mobile phone camera. All personally identifiable information provided to
ID.me is encrypted and disclosed only with the express consent of the user. Users who are not
able to validate their identity using ID.me should contact the Capital Projects Fund (see Section
V).
Application Form. Applications will only be accepted through the Capital Projects Fund Portal,
accessible at: https://portal.treasury.gov/. A .pdf sample of the Application content will be
available on the Treasury website at the address provided below at Section V.
Application Deadline. Eligible Applicants or their designees must complete the Application by
June 1, 2022 to receive funding under the Capital Projects Fund program. The exact deadline will
be posted on Treasury’s website. If a Tribal Government fails to submit a complete
Application, including a signed designation letter if necessary and an accurate use of
funds description by June 1, 2022, the Capital Projects Fund grant funds allocated to the
Tribal Government may be forfeited and may be reallocated to other Tribal Governments
that submitted complete Applications within the application window. Eligible Applicants
are therefore encouraged to submit Applications well in advance of the deadline to allow
time for remediation prior to the deadline, if needed.
Treasury will post the specific timeframe during which it will accept Capital Projects Fund
Applications on its website. Capital Projects Fund grant funding may not remain available to
Eligible Applicants who fail to submit a timely Application. Eligible Applicants may submit
information related to use of Capital Projects Fund grant funds following the submission of the
Application.
Tribal Governments may apply individually, jointly with other tribes, or through an organization,
consortium, or similar entity. Only one Application shall be accepted for each eligible entity. If
anyone other than the Eligible Applicant’s duly authorized Tribal official is submitting the
Application, a designation letter is required (see III.A.b). Eligible Applicants should coordinate
internally to ensure that only one Application is submitted.
C. EXECUTION OF AGREEMENTS
Treasury Determinations. Treasury will review Applications for completeness, Applicant eligibility,
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and consistency with Capital Projects Fund requirements. Treasury will also review additional
required or requested material as well as any other reasonable supplementary information
submitted by Eligible Applicants. Treasury may consult with other U.S. Government components
in reaching its determinations, but final Application determinations will be at Treasury’s sole
discretion.
Grant Agreements. Once Treasury has validated Application completeness and Applicant
eligibility, the Eligible Applicant’s authorized representative (see Section II.A.c) will execute a
Grant Agreement. Grant Agreements will be standard program documents that are not subject to
negotiation. The Grant Agreement will, among other things contain terms and conditions related
to the following:
• Roles and responsibilities;
• Grant payments;
• Eligible and ineligible uses of funds (see Section I.C);
• Period of performance on the Capital Projects Fund grants, which ends on December 31,
2026;
• Accounting and reporting requirements;
• Compliance requirements and remedies for noncompliance, including but not limited to return
of funds where appropriate;
• Audits, recordkeeping, and internal controls; and
• Other terms required or permitted by federal law.
Treasury may increase the grant amount based on funds available after the Application deadline
for Tribal Governments. Treasury will publish additional information related to the availability of
additional funding at a future date.
D. PAYMENT OF GRANT FUNDS
After executing a Grant Agreement, Recipients that selected a presumptively eligible use will
receive their total requested grant amount. Eligible Applicants that selected “Other” will have their
proposed eligible use information reviewed by Treasury prior to payment. Treasury may require
modifications to eligible use proposals prior to payment.
E. APPLICATION ASSISTANCE
Treasury is available to answer questions about the grant process and the Capital Projects Fund
in general; e-mail correspondence is preferred but not required. The Capital Projects Fund
program contact information is provided below at Section V. Treasury may also host webinars
and post FAQs on its website.
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III. OTHER REQUIREMENTS
This Section provides a summary of other requirements that Recipients must meet, including
construction, reporting, and compliance requirements. Treasury will release detailed reporting
and compliance requirements soon after the Capital Projects Fund Portal Launch.
A. PUBLIC REPORTING
Treasury is required by transparency laws to disclose the names of Capital Projects Fund
Recipients and the amounts of Capital Projects Fund grants, and Treasury may disclose other
information provided by Recipients in their Applications to the public. Treasury will post this
information on its website and report this information on the usaspending.gov website, which
allows the public to see how the federal government has distributed COVID-19 relief funding.
B. COMPLIANCE REQUIREMENTS FOR CONSTRUCTION
Projects funded by the Capital Projects Fund must comply with all applicable federal
environmental laws. Generally, the National Environmental Policy Act does not apply to Projects
funded by the Capital Projects Fund. 12 Prior to funding a Capital Project, Recipients may
complete an environmental checklist, to be made available on the Capital Projects Fund website,
to determine whether certain environmental laws apply. Generally, Capital Projects that do not
involve construction activities will not be subject to federal environmental review requirements.
Projects must reach substantial completion before December 31, 2026. Substantial completion is
defined as the date for which the Project can fulfill the primary operations that it was designed to
perform, delivering services to end-users. At substantial completion, service operations and
management systems infrastructure must be operational. Recipients may request extensions
beyond this timeframe to the extent that factors outside of the Recipient’s control have impacted
Project delivery timelines. Treasury will approve extension requests on a case-by-case basis.
C. REPORTING
In general, Recipients will be responsible for satisfying the following reporting requirements:
• Project and Expenditure Reports submitted annually to Treasury that include data
regarding Projects, expenditures, Project status, subawards, civil rights compliance,
equity indicators, community engagement efforts, programmatic data such as geospatial
data for Broadband Infrastructure Projects, and other measures as determined by
Treasury. To provide public transparency on whether Projects are using practices that
promote on-time and on-budget delivery, Treasury will seek information from Recipients
on their workforce plans and practices related to Capital Projects Fund Projects, as well
as information about subcontracted entities.
Treasury will release detailed reporting guidance soon after the Capital Projects Fund Portal
Launch.
12 Projects supported with payments from the Capital Projects Fund may still be subject to NEPA review if
they are also funded by or otherwise involve actions from other federal programs or agencies.
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D. OVERSIGHT
Recipients and Subrecipients will be subject to audit or review by the Treasury Inspector
General and Government Accountability Office.
E. APPLICATION OF UNIFORM GUIDANCE
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, 2 C.F.R. Part 200 apply to the Capital Projects Fund grant, except for any provisions
Treasury may determine are inapplicable to an award and subject to such exceptions as may be
otherwise provided by Treasury. Subpart F – Audit Requirements of the Uniform Guidance,
implementing the Single Audit Act, shall apply to this award.
F. SANCTIONS
In the event of a Recipient’s noncompliance with applicable law or Capital Projects Fund program
requirements or guidance, Treasury may impose additional conditions on the receipt of additional
Capital Projects Fund funds by the Recipient, terminate further payments from the Capital Projects
Fund, seek the repayment of previous Capital Projects Fund payments, or take other available
remedies pursuant to 2 C.F.R. 200.339.
G. CONFIDENTIALITY OF ELIGIBLE APPLICANT INFORMATION
Treasury may publicly share information from the Application. Eligible Applicants are encouraged
not to include any confidential or proprietary information in their Applications. If any such
information is included, Eligible Applicants must identify and label it.
H. COMPLIANCE WITH APPLICABLE LAWS
Recipients are responsible for complying with all applicable federal, Tribal, and state laws. Tribal
governments may review Section III.H, Civil Rights Compliance, of the Guidance for the
Coronavirus Capital Projects Fund for States, Territories and Freely Associated States for
information on legal requirements relating to nondiscrimination and nondiscriminatory use of
federal financial assistance, to the extent applicable.
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IV. DEFINITIONS
Treasury will apply the following definitions for purposes of this guidance. These definitions
supplement and interpret certain terms in Section 604(b) of the Statute. Terms not defined herein
shall have the definitions contained in Uniform Guidance
(a) “Allocation Table” means a summary of all contemplated funding sources and uses for
Program funded with Capital Projects Fund grant funding.
(b) “Application” means the form hosted on the Capital Projects Fund Portal where
Applicants will demonstrate eligibility, provide information, and respond to
requirements necessary for receiving a Capital Projects Fund Grant.
(c) “Broadband Infrastructure Project” has the meaning set forth in Section I.C.a.
(d) “Capital Project” or “Project” has the meaning set forth in Section I.C.c.
(e) “Capital Projects Fund Grant Plan” or “Grant Plan” means a plan for deploying Capital
Projects Fund grant funding that is submitted by a Recipient as part of the request for
funding.
(f) “Capital Projects Fund Portal” means the electronic submissions portal where Eligible
Applicants can submit their Application, Capital Projects Fund Grant Plan, and other
information necessary to receive a Capital Projects Fund award. The Capital Projects
Fund Portal may be reached at: https://portal.treasury.gov/.
(g) “Capital Projects Fund Portal Launch” means the date at which Treasury begins
accepting Applications via the Capital Projects Fund Portal to receive Capital Projects
Fund grant funding.
(h) “Digital Connectivity Technology Project” has the meaning set forth in Section I.C.a.
(i) “Eligible Applicant” has the meaning set forth in Section I.A.
(j) “Grant Agreement” means the standardized agreement executed between the Eligible
Applicant’s authorized representative and Treasury that outlines the terms and conditions
of the funds, reporting and recordkeeping, and other requirements.
(k) “Multi-Purpose Community Facility Project” has the meaning set forth in Section I.C.a.
(l) “Program” means one or more Capital Projects with common characteristics (e.g., a group
of Multi-Purpose Community Facility Projects that directly enable work, education, and
health monitoring) for which an Eligible Applicant is seeking funding under the Capital
Projects Fund.
(m) “Program Administrative Cost” means the costs incurred by a Recipient related to the
administration of Capital Projects Fund awards, the provision of technical assistants to
potential Sub-recipients, and compliance with grant administration and audit requirements.
(n) “Program Plan” means a plan submitted by a Recipient containing a description of a
Program for which the Recipient is seeking funding under the Capital Projects Fund.
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(o) “State” has the meaning set forth in Section I.A.
(p) “Statute” means Section 604 of the Social Security Act.
(q) “Treasury” means the U.S. Department of the Treasury.
(r) “Tribal Government” means the recognized governing body of any Indian or Alaska Native
tribe, band, nation, pueblo, village, community, component band, or component
reservation, individually identified (including parenthetically) in the list published most
recently as of the date of enactment of this Act pursuant to Section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131) and the State of Hawaii (for
exclusive use of the Department of Hawaiian Home Lands and the Native Hawaiian
Education Programs to assist Native Hawaiians).
(s) “Uniform Guidance” means the Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards located in Title 2 of the Code of Federal
Regulations (2 C.F.R. 200).
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V. CONTACT INFORMATION
E-mail correspondence is preferred. Correspondence by mail may be subject to significant
delays.
CapitalProjectsFund@treasury.gov
U.S. Department of the Treasury Attn: Capital Projects Fund
1500 Pennsylvania Ave NW
Washington, DC 20220
https://www.treasury.gov/CPF
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