FCC Chair Urges Additional Funding for Affordable Connectivity Program

Federal Communications Commission Chair Requests Additional Funding for Affordable Connectivity Program

The Federal Communications Commission chair, Jessica Rosenworcel, has urged Congress to allocate additional funding for the Affordable Connectivity Program (ACP), which offers monthly discounts on broadband services for low-income households. The program's funding has run out, and without further support, the 23 million households enrolled in the program will lose their financial help in May. Rosenworcel warns that this could lead to disrupted service or dropped Internet service entirely for these households. The ACP started with $14.2 billion allocated by Congress in late 2021, and the White House has urged Congressional Republicans to support funding for the program.

Key Takeaways

• The Federal Communications Commission (FCC) chair has requested additional funding from Congress to continue the Affordable Connectivity Program (ACP), which offers monthly broadband discounts to people with low incomes.
• The ACP has provided financial assistance to 23 million households, but funding has run out and people may only receive up to $14 in May if their Internet Service Provider (ISP) offers a partial discount.
• If additional funding is not provided, 1 in 6 households relying on the ACP will face rising bills and potential disconnection, with 77% of participating households reporting that losing this benefit would disrupt their service.
• The ACP was allocated $14.2 billion in late 2021, replacing the previous $50 monthly subsidy from the Emergency Broadband Benefit Program.
• Republican members of Congress have called the program "wasteful", while FCC survey data shows that 68% of ACP households stated they had inconsistent or zero connectivity prior to ACP.
• The White House has urged Congress to fund the program and blamed Republicans for not supporting funding proposals.

Analysis

The Federal Communications Commission's call for additional funding for the Affordable Connectivity Program (ACP) highlights the financial strain on the program, which has assisted 23 million low-income households with monthly broadband discounts. The expiration of ACP's funding could lead to disrupted or lost Internet services for these households in May. The consequences of inaction may disproportionately affect already vulnerable populations, as 68% of ACP households reported inconsistent or no connectivity prior to program enrollment. Internet Service Providers may also face challenges, as the potential loss of ACP subsidies could result in increased unpaid bills or customer churn. The political impasse between the White House and Congressional Republicans over funding the ACP may lead to further delays, given their differing views on the program's value and potential wastefulness. Overcoming this stalemate will likely require a bipartisan solution and prioritization of bridging the digital divide.

Did You Know?

• Affordable Connectivity Program (ACP): The ACP was initiated by the Federal Communications Commission (FCC) to provide monthly discounts on broadband services for low-income households. The program was previously known as the Emergency Broadband Benefit Program, offering a $50 monthly subsidy, but was replaced with the ACP, which provides up to $30 per month.

• Funding for the ACP: The ACP was initially allocated $14.2 billion by Congress in late 2021. However, due to the increasing number of low-income households relying on the program, the funding has run out, and without further support, the 23 million households enrolled will lose their financial assistance in May.

• Impact of Funding Shortage: If additional funding is not provided, it could lead to disrupted or dropped Internet service for the 23 million households relying on the ACP. This could affect 1 in 6 households and disrupt the service for 77% of participating households that have previously reported inconsistent or zero connectivity.