GUIDANCE FOR THE CORONAVIRUS 

CAPITAL PROJECTS FUND 

FOR TRIBAL GOVERNMENTS

U.S. Department of the Treasury
1 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. 
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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 government3 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-recognizedby-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 lowcost 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 computers6

 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 MultiPurpose 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 assets7 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-inconstruction laws (commonly known as “baby Davis-Bacon Acts”) may apply to projects.
13 Guidance for the Coronavirus Capital Projects Fund for Tribal Governments

U.S. Department of the Treasury

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
21 Guidance for the Coronavirus Capital Projects Fund for Tribal Governments

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