House, Senate Commerce Republicans Question ACP's Future, in Probe Request
Top Republican leaders on the House and Senate Commerce committees want the FCC's Office of Inspector General to review the commission's management of broadband money it received during the COVID-19 pandemic, saying in a Monday letter to acting IG Sharon Diskin "it's important to understand" the affordable connectivity program's "record to date" as they decide whether to back extending its life. They are seeking answers by June 1. The request came before two congressional hearings later this week on federal broadband spending and may provide further insight into whether there’s a consensus for making legislative changes to existing programs.
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House Commerce Chair Cathy McMorris Rodgers of Washington and other GOP leaders told Diskin they have "serious concerns" about "the effectiveness of temporary" initiatives like ACP. "Despite the good intentions" of ACP and the predecessor emergency broadband benefit program, "questions have been raised regarding their effectiveness and FCC oversight over how program dollars have been spent," the lawmakers said. Also on the letter: Senate Commerce ranking member Ted Cruz of Texas, House Communications Subcommittee Chairman Bob Latta of Ohio and Senate Communications Subcommittee ranking member John Thune of South Dakota. "While much focus has been paid to reports of fraud ... it is equally if not more important to evaluate what quantifiable benefits have been delivered by the subsidies," it said.
Rodgers and the other GOP leaders asked OIG to "determine to what extent the programs have accomplished the FCC’s stated goal of 'reduc[ing] the digital divide for low-income consumers' and ascertain the data behind" FCC Chairwoman Jessica "Rosenworcel’s statement that 'millions of families who previously could not get online or struggled to pay for this modern-day necessity are now connected' due to ACP." There "are strong indications that the programs have not been effective in increasing broadband adoption," the lawmakers said.
The Republicans cited a 2022 Phoenix Center study that said "only five to 10 percent of subsidized participants were not previously online" and FCC surveys of ACP participants that showed "only 16 percent of respondents had no internet access prior to subscribing with" ACP. "This data suggests that the vast majority of tax dollars have gone to those who already subscribed to broadband plans prior to the subsidy and that the programs have been poorly targeted to the stated goal of reducing the digital divide," the lawmakers said. "This fact has been confirmed by telecom companies participating in the programs, too."
"Unsurprisingly, it does not appear that the FCC has studied whether" ACP "is successfully targeting non-adopters," the GOP leaders said. To "the extent that the FCC has attempted to measure success, it has focused predominantly on program participation rates." Demonstrating “the program is popular does not prove its benefits,” the lawmakers said. They seek detailed data on whether the FCC adequately targeted ACP "to households currently without broadband" and whether it "developed specific goals and metrics to track the ACP’s effectiveness and progress over time." The Republicans also want to know if the FCC "adequately communicated with participating providers to prepare for potential lapses in ACP funding."
The FCC didn’t comment. Rosenworcel and Commissioner Geoffrey Starks are to promote ACP during separate events this week. Rosenworcel will tout the program Tuesday in Phoenix with Mayor Kate Gallego (D), the commission said Monday in an email. “Over 17 million households have enrolled” in ACP so far “and are receiving monthly discounts on their internet bills,” Rosenworcel said in a statement. “The response to this program demonstrates that an internet connection is vital for success in today’s world, but there are still more families we can reach.” Starks plans a joint Saturday event with House Minority Leader Hakeem Jeffries, D-N.Y., in Brooklyn, the commissioner’s office said.
Lobbyists expect Rodgers and other Republicans to raise concerns about ACP during a planned Wednesday House Commerce Oversight Subcommittee hearing on existing federal broadband programs (see 2305030055). GAO Director-Physical Infrastructure David Von Ah is the only scheduled witness and the watchdog agency’s January report that criticized the FCC’s ACP implementation drew attention from congressional Republicans (see 2301260055). The hearing will be Commerce’s first foray into what’s expected to be a more critical look at recent broadband spending now that Republicans have the chamber majority (see 2305030055).
Thursday's Senate Communications Subcommittee hearing (see 2304270078) is likely to focus mainly on a potential legislative USF revamp, but GOP concerns about ACP may filter into the discussion since the FCC oversees both programs, lobbyists said. Scheduled witnesses include Incompas President Angie Kronenberg and Public Knowledge Government Affairs Director Greg Guice. Also on the panel: Tim Chavez, technology director-Cuba (N.M.) Independent School District, Golden West Telecom Cooperative CEO Denny Law and Boston College Law School professor Daniel Lyons. The hearing is to begin at 10 a.m. in 253 Russell.