Dallas city staff sitting on $43 million in unused American Rescue Plan Act money

Loading Video…

This browser does not support the Video element.

Dallas sitting on $43M in unused pandemic money

Dallas city staff proposed using the $43 million in American Rescue Plan Act dollars to build a fiber network intended to increase internet access in the city. However, council members' questions revealed then that the plan would just duplicate a fiber network that already exists.

Some Dallas City Council members want to know why the city is sitting on $43 million in federal cash.

The money was distributed to cities as emergency funding during the pandemic. The last time Dallas city staff briefed the money was more than a year ago. 

Dallas city staff proposed using the $43 million in American Rescue Plan Act dollars to build a fiber network intended to increase internet access in the city. However, council members' questions revealed then that the plan would just duplicate a fiber network that already exists. 

Now, some city council members want to know what is the city planning to do with the money now and how much longer will it take. 

Councilwoman Cara Mendelsohn along with Mayor Pro Tem Tennel Atkins drafted a memo asking the city manager to change course. 

"What our goal was to actually help the residents get connected to the internet. And so we want to see the city staff refocused on those efforts to help everyone get connected," Mendelsohn said.

Atkins said he doesn't see the wisdom in the city trying to get into the internet provider business.

"You have other companies who have their own infrastructure in place," he said. "Also, it’s gonna be a cost once you put it in place. What is it gonna cost us to maintain it and what it’s gonna cost the citizens to maintain it?"

A representative with Charter Spectrum told city council members in June last year that the company already has fiber that reaches the vast majority of the city. 

The Texas Broadband development map has since confirmed that Dallas is one of the most digitally connected cities in the state. 

At that June 2022 meeting, Mendelsohn touched a nerve when questioning if the city should take on more it issues.                 

"I have no interest in adding a new function at city hall to be an internet service provider. It is the weakest link at city hall," she said.

"When you start a statement about this and say it is weakest link in the city, you raise an issue unrelated around DPD and cloud issues. That has no connection in dropping fiber," said Dallas City Manager T.C. Broadnax.

Despite a promise to provide an update to council members in September last year, city staff has been silent since that briefing about how to move forward with the tens of millions in federal funding. 

"I think this got a little bit off track. And so I'm glad that there's so many council members coming together to say let's accomplish the goal we set out to do," Mendelsohn said.

FOX 4 reached out to the city to get a response to the memo. While the request for comment was acknowledged, the city has not yet provided a statement. 

The city manager's proposed budget is expected to be released this week.