RNA polymerase II (pol II) is subject to an early elongation delay induced by negative factors Spt5/Spt4 and NELF, which is overcome by the positive factor P-TEFb (Cdk9/cyclin T), a protein kinase that phosphorylates the pol II C-terminal domain (CTD) and the transcription elongation factor Spt5. Although the rationale for this arrest and restart is unclear, recent studies suggest a connection to mRNA capping, which is coupled to transcription elongation via physical and functional interactions between the cap-forming enzymes, the CTD-PO 4 , and Spt5. Here we identify a novel interaction between fission yeast RNA triphosphatase Pct1, the enzyme that initiates cap formation, and Schizosaccharomyces pombe Cdk9. The C-terminal segment of SpCdk9 comprises a Pct1-binding domain distinct from the Nterminal Cdk domain. We show that the Cdk domain interacts with S. pombe Pch1, a homolog of cyclin T, and that the purified recombinant SpCdk9/Pch1 heterodimer can phosphorylate both the pol II CTD and the C-terminal domain of S. pombe Spt5. We provide genetic evidence that SpCdk9 and Pch1 are functional orthologs of the Saccharomyces cerevisiae CTD kinase Bur1/Bur2, a putative yeast P-TEFb. Mutations of the kinase active site and the regulatory T-loop of SpCdk9 abolish its activity in vivo. Deleting the C-terminal domain of SpCdk9 causes a severe growth defect. We suggest a model whereby Spt5-induced arrest of early elongation ensures a temporal window for recruitment of the capping enzymes, which in turn attract Cdk9 to alleviate the arrest. This elongation checkpoint may avoid wasteful rounds of transcription of uncapped pre-mRNAs.The 5Ј-cap is the defining structural feature of eukaryotic mRNA. Consisting of m 7 G linked via an inverted 5Ј-5Ј triphosphate bridge to the initiating nucleoside of the transcript, the cap is formed by enzymatic modification of pre-mRNAs as they are being synthesized by RNA polymerase II (pol II). 1 Capping entails three reactions: (i) the 5Ј-triphosphate end of the nascent pre-mRNA is hydrolyzed to a diphosphate by RNA triphosphatase, (ii) the diphosphate RNA end is capped with GMP by RNA guanylyltransferase, and (iii) the GpppN cap is methylated by RNA (guanine-N7) methyltransferase (1). Targeting of cap formation to pre-mRNAs depends on interactions of the capping enzymes with the phosphorylated C-terminal domain (CTD) of the largest subunit of pol II (Ref. 2 and citations therein). Recruitment of the capping apparatus to the elongation complex requires the TFIIH-associated CTD kinase (Kin28 in yeast, Cdk7 in mammals), which phosphorylates Ser-5 of the CTD heptad repeat YSPTSPS (3, 4).Other protein-protein contacts may also be involved in coupling capping to pol II transcription elongation. The pol II elongation factor Spt5 binds directly to the triphosphatase and guanylyltransferase components of the mammalian and Schizosaccharomyces pombe capping apparatus (5, 6). The fission yeast S. pombe employs a distinctive strategy of cap targeting whereby the triphosphatase (Pct1) and guanylyltrans...