ACP Stopgap Funds Not in FY24 Minibus; $3B for Rip and Replace Also Doubtful

Stopgap funding for the FCC’s affordable connectivity program is not included in an FY 2024 appropriations “minibus” package Congress is aiming to approve this week, several lobbyists told us Tuesday. The omission also makes it doubtful congressional leaders attached an additional $3.08 billion for the Secure and Trusted Communications Networks Reimbursement Program, lobbyists said. Advocates of both programs were pushing for their funding in the minibus (see 2403150063) as recently as last weekend. The White House and Capitol Hill reached a deal on FY24 funding for the FCC and most other agencies over the weekend; they reached a final agreement on the bill Monday night.

Congressional leaders had not released final bill text as of Tuesday afternoon, with some officials expecting the language to go public Wednesday morning. ACP backers were certain stopgap money for that program wasn’t in the minibus because congressional leaders were unable to reach a deal to pay for it via spectrum auction language, which was the only clear funding mechanism. The Biden administration in October sought $6 billion to keep the initiative running through FY24 and the subsequent ACP Extension Act (HR-6929/S-3565) proposed $7 billion (see 2401100056). A deal to attach additional rip-and-replace money to the package would likely also have required accompanying spectrum sales revenue, although there were some proposals in the mix that eyed other funding sources, lobbyists said.

The FCC Wireline Bureau said Tuesday its estimated May ACP reimbursements (see 2403040077) will range $7-$16 for the non-tribal service benefit; $18-$39 for the tribal benefit; and $24-$53 for a connected device. The bureau said in a public notice in docket 21-450 that the estimates considered “open claims for past service months, recent program activity, and claims trends.” The notice reminded providers that May is “the last month” that providers can seek ACP reimbursement absent additional congressional funding.

An ACP wind-down “is certain to increase inequality in broadband adoption, though by how much is unknown,” Phoenix Center Chief Economist George Ford said in a paper Tuesday. “While many low-income households participating in the ACP may remain online when the subsidy expires, it is undoubtedly true that many may abandon broadband service altogether while many others will have to forgo some services or else subscribe to more limited services.” Although “broadband adoption has become more equal over the years, in part due to” ACP and the preceding emergency broadband benefit, “some members of Congress are apparently concerned that the reduction in inequality is not worth the cost, which is about $9 billion annually,” Ford said: “Those costs could be reduced, perhaps, by altering the qualifications for the program or restricting subsidies to certain types of services.”

The House Commerce Committee, meanwhile, said Monday night it plans a Wednesday markup that will include votes on the Future Uses of Technology Upholding Reliable and Enhancing Networks Act (HR-1513) and three communications equipment security measures. Also on the agenda: the Foreign Adversary Communications Transparency Act (HR-820), Countering CCP Drones Act (HR-2864) and Removing Our Unsecure Technologies to Ensure Reliability and Security Act (HR-7589). The markup session, which also will include two-dozen other bills within House Commerce’s jurisdiction, is set to begin at 10 a.m. in 2123 Rayburn.

House Commerce is expected to easily advance HR-1513 and the other communications measures, lobbyists told us. The Communications Subcommittee unanimously advanced all four bills last week (see 2403120073). HR-820 would require the FCC to publish a list of communications companies with FCC licenses or other authorizations in which China and other foreign adversaries’ governments hold at least a 10% ownership stake (see 2210250067). HR-1513 would direct the FCC to establish a 6G task force that provides recommendations about ensuring U.S. leadership in developing that technology’s standards. HR-2864 would add Chinese drone manufacturer Da-Jiang Innovations (DJI) to the FCC’s covered entities list. HR-7521 would direct the Commerce Department to “specify what transactions involving routers, modems, or devices that combine a modem and a router are prohibited” under a 2019 executive order by then-President Donald Trump’s that barred transactions involving information and communications technologies that pose an “undue risk of sabotage to or subversion of” U.S.-based communications services (see 1905150066).