Lead Republican lawmakers’ recent charge that the FCC was “deeply misleading” about the affordable connectivity program’s efficacy (see 2312150068) has solidified perceptions on and off Capitol Hill that it will be extremely difficult to reach a deal allocating additional money before the initiative's funding runs out next year, lobbyists and observers told us. Estimates peg ACP as likely to exhaust its initial $14.2 billion tranche from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060). The White House is pushing for Congress to appropriate an additional $6 billion to fully fund the program through the end of 2024 (see 2310250075).
Affordable Connectivity Program (ACP)
What is the Affordable Connectivity Program (ACP)?
The Affordable Connectivity Program was a recently expired subsidy for low-income households to lower the cost of purchasing broadband internet and connected devices. The program was signed into law as part of the 2021 Infrastructure Investment and Jobs Act and administered by the FCC up until June 1, 2024, due to expiration of the ACP’s funding.
Will the ACP Return?
Congress continues to debate restoring ACP funding, with immediate next steps likely to come from the Senate Commerce Committee or Congressional discussions on revising the Universal Service Fund.
Latest News on the Affordable Connectivity Program
Louisiana is the first state to get full NTIA approval of its initial proposal for the broadband, equity, access and deployment (BEAD) program. NTIA approved volume 2 of the state's plan, the agency said Friday. On a videoconference with reporters Thursday, outgoing Louisiana Gov. John Bel Edwards (D) said he has no concerns that Gov.-elect Jeff Landry (R) “will depart from the commitment that we have made in our submission.”
Four lead Republicans on the House and Senate Commerce committees and their Communications subpanels raised major concerns Friday with the FCC’s “deeply misleading” claims about the affordable connectivity program's efficacy. Some lobbyists think this is a problem given the Biden administration’s push for Congress to appropriate an additional $6 billion to fully fund the initiative through the end of 2024 (see 2310250075). Estimates peg ACP as likely to exhaust its initial $14.2 billion tranche from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060).
Don’t cut a free broadband requirement from California Advanced Services Fund public housing account (PHA) rules, The Utility Reform Network (TURN) urged this week. The California Public Utilities Commission posted comments and replies this week on a staff proposal in docket R.20-08-021. TURN reacted to a suggestion by the California Emergency Technology Fund (CETF) to consider removing the proposal's requirement to provide five years free.
FCC Commissioner Anna Gomez wants to focus on empowering and engaging with underserved consumers and combating media disinformation, she said Tuesday during the Congressional Hispanic Caucus Institute’s inaugural Celebrating Latina Excellence event. A news release from her office called it “her first major speech.” Gomez was sworn in Sept. 25. In a news conference after her remarks Tuesday, Gomez said that her most immediate policy goals for the FCC are implementing continued funding for the affordable connectivity program and spectrum auctions authorization, both of which would require congressional action before the agency could act. “I am a firm believer in the power of competition to drive innovation that improves services and lowers prices for consumers,” Gomez said. “But competition only works when the market works”
Republican condemnation of the FCC’s actions since it shifted to a Democratic majority in late September -- and Democrats’ defense of the commission’s recent record -- dominated a Thursday House Communications Subcommittee hearing on agency oversight, as expected (see 2311290001). The hearing’s slightly rancorous tone signaled a return to more overtly partisan oversight, in contrast to relatively more bipartisan discussion when FCC commissioners testified in front of the subpanel in June, while the commission was still tied 2-2 (see 2306210076).
The California Public Utilities Commission should reject a proposed change to NTIA’s broadband, equity, access and deployment (BEAD) model rules that would affect how the state treats licensed fixed wireless (LFW) services, wireless industry groups said this week. The CPUC released comments Tuesday on volumes one and two of draft BEAD initial proposals (docket R.23-02-016). AT&T, CTIA and California’s cable association urged the commission to reject a cheap broadband requirement proposed in case Congress doesn’t renew the affordable connectivity program (ACP).
Some ISPs tell Wall Street they aren't expecting notable subscriber losses should funding run out for the Affordable Connectivity Program. They expect to keep subs -- though at perhaps lower speed tiers and cheaper service offerings. Advocates say ACP helps make connectivity affordable for current subscribers and ensures accessibility items that the broadband equity, affordability and deployment (BEAD) program addresses translate into adoption.
LA QUINTA, Calif. -- The FCC seemed more open to collaboration with states in its final NPRM for its rulemaking to possibly reclassify broadband as a Title II service, a California Public Utilities Commission staffer said during a panel Tuesday at NARUC’s meeting here. NARUC Telecom Committee Chairman Tim Schram told us Monday that the state regulator association would probably have a resolution about the FCC net neutrality rulemaking at its February meeting in Washington (see 2311130063).
Twenty-six governors are urging federal lawmakers to ensure additional funding for the Affordable Connectivity Program. "Preserving the ACP will allow us to build upon the progress we’ve made in expanding connectivity rather than falling behind in a mission we cannot afford to lose," the bipartisan group said in a letter Tuesday to House and Senate Majority and Minority leaders. Agency officials also called on Congress to provide additional funding during a Connect20 Summit Tuesday hosted by Network:On, National Digital Inclusion Alliance and Broadband Breakfast. "If you're going to have a goal of affordable, reliable high-speed internet for every American, you have to make a serious commitment to the affordable piece," said Capital Projects Fund Director Joseph Wender, "and that serious commitment is the ACP." Wender cautioned that "we are approaching a cliff where it will run out of money at some point early next year" and there could be "cascading effects" should the program be forced to sunset. ACP "has been a really critical way for all of our agencies to make sure that once we help support the infrastructure costs, that it's affordable for consumers," said Rural Utilities Service Assistant Administrator-Telecom Program Laurel Leverrier. The program has especially benefited rural areas where "the economics aren't there for a lot of rural providers," Leverrier said, and it's "a really critical piece for our rural communities." NTIA is "fully invested" in ensuring that ACP "remains an active program," said Principal Deputy Assistant Secretary-Deputy Administrator Sarah Morris, "both to connect these households and also for the ongoing success of our BEAD program."