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Funds Run Out in 2024

Renewing ACP 'Critical,' Broadband Experts Warn

Broadband experts raised concerns about the future of the FCC's affordable connectivity program Wednesday during a Broadband Breakfast webinar (see 2310040072). With more than 20 million households enrolled in the program to date, panelists urged policymakers to replenish the generally popular program. Some also urged the FCC and Congress to consider longer term solutions to address broadband affordability and adoption.

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ACP has been "one of the best tools in the toolbox to help people be able to afford broadband," said Kirsten Compitello, Michael Baker International national broadband digital equity director. It "acknowledges that the cost of broadband is just too expensive for a lot of people, and we have this adoption gap," Compitello said. Public Knowledge President Chris Lewis agreed, saying the program is a "huge step" toward closing the digital divide. "The support is there" to continue funding ACP, Lewis said: "I just feel like the dysfunction is something that needs to be cut through."

With the program forecast to run out of funds in April, "it's going to take some real political will" to renew the program, Lewis said. ACP is unique because it's a "tech neutral voucher" established by Congress that "flows directly to the customer," said R Street Institute Policy Counsel-Technology and Innovation Jonathan Cannon. Congress can "adapt and react in real time to issues" if there are any concerns about the structure of the program, Cannon said, noting GAO's and the FCC Office of Inspector General's oversight of any fraud or abuse "has been a strength of the program."

It's "critical" that ACP be renewed because without it, NTIA's broadband, equity, access and deployment program also "cannot be a success," said consultant Debra Lathen, former FCC Cable Bureau chief. "You will not be able to reach the Americans who really need access to the internet" without maintaining an affordability component, Lathen said, saying the economy will depend on having people with digital literacy skills. There are also "a lot of moving parts right now in the broadband space," Compitello said. There are still many questions as states continue preparing for BEAD and other federal broadband programs, she said. The question that must be answered now is "whether people are going to lose their broadband access" if ACP runs out of funding, Compitello said, adding the program has had a "multigenerational impact" on low-income households.

"Now is the time to replenish the dollars of the fund" so Congress and the FCC can find a long-term solution to addressing broadband affordability for low-income consumers, Lewis said, saying he hopes for action on that through USF reform. "We're stuck in a really frustrating situation where Congress is looking to cut costs everywhere they can," Cannon said, but ACP could be used as a model for any changes to other broadband affordability programs. Lathen warned that adding ACP to the conversation about USF now would be "the quickest way that we will not have funding."