Affordable Connectivity Program (ACP)

The California Public Utilities Commission will audit carriers for compliance with the state’s April 2023 shift to connections-based contribution to universal service public purpose programs. In a Wednesday ruling, CPUC Administrative Law Judge Hazlyn Fortune directed the agency's utility audit branch to ensure carriers are reporting and remitting the surcharge in a reasonable manner and as directed in the CPUC's October 2022 decision (docket R.21-03-002). T-Mobile has resisted the contribution mechanism change in the courts (see 2310170042). In a separate ruling Wednesday, ALJ Robyn Purchia clarified that California LifeLine pilot programs using federal affordable connectivity program (ACP) funds will continue through at least May 31. "If the ACP receives additional federal funding, the pilot programs may continue up to June 8, 2025," said the ALJ: If the ACP doesn't receive more funding by April 30, providers must notify California LifeLine customers by May 1 "that their service may be discontinued or otherwise changed."

House Commerce Committee ranking member Frank Pallone (N.J.), Communications Subcommittee ranking member Doris Matsui (Calif.) and 10 other subpanel Democrats urged NTIA Administrator Alan Davidson Tuesday "to continue to prioritize affordability in your administration of" the $42.5 billion broadband equity, access and deployment (BEAD) program as the agency reviews states' plans for the money. The Democrats wrote Davidson days after Congress approved the Further Consolidated Appropriations Act FY 2024 minibus spending package without hoped-for stopgap money for the FCC's affordable connectivity program or Secure and Trusted Communications Networks Reimbursement Program (see 2403210067). "Access to internet service is meaningless to consumers if the cost of signing up is a barrier,” the lawmakers said in their letter. “Studies show that nearly half of all broadband non-adopters cited cost as the primary reason they did not have home internet service." The 2021 Infrastructure Investment and Jobs Act, which created ACP and BEAD, "includes separate affordability provisions that are specific to the BEAD program," the lawmakers said: "Congress decided to allocate BEAD funds to states and territories since they are best situated to determine the needs of their communities, but it did not change any existing authority to oversee broadband or pricing." NTIA has "administrative oversight and programmatic support responsibilities to ensure the funds would be spent consistent with Congressional intent, including the review and approval of proposals after significant consultation between the state or territory and NTIA," the Democrats said. "These are critical procedures for NTIA to follow in determining whether low-cost plans are in fact affordable for the areas and markets where they are proposed." It "would be a significant missed opportunity in the administration of BEAD if these affordability provisions are not exercised to their fullest to help middle-class and low-income Americans afford the cost of internet service, consistent with the statute," the lawmakers said. Congressional Republicans have criticized NTIA's reviews of state plans' affordability provisions as a form of rate regulation (see 2312180063).

Senate Commerce Committee Chair Maria Cantwell, D-Wash., told us Thursday she hopes to soon file legislation on a five-year renewal of the FCC’s lapsed spectrum auction authority without language authorizing sales of specific bands, despite Republican criticism during a Thursday hearing about omitting an airwaves pipeline. Senate Commerce ranking member Ted Cruz, R-Texas, and Communications Subcommittee ranking member John Thune, R-S.D., emphasized their 2024 Spectrum Pipeline Act (S-3909) as an antidote to concerns about the Biden spectrum strategy, as expected (see 2403200001). The hearing also revealed clear divisions among panel Republicans about continuing to explore 5G use of the 3.1-3.45 GHz band, which has drawn opposition from DOD and top Capitol Hill allies (see 2403200061).

Senate Commerce Committee Democrats and Republicans who back allocating an additional $3.08 billion for the FCC’s Secure and Trusted Communications Networks Reimbursement Program and stopgap funding for the commission’s ailing affordable connectivity program used a Thursday spectrum-focused hearing (see 2403210063) to vent about the Hill's failure thus far to address either priority. The Further Consolidated Appropriations Act FY 2024 minibus spending bill, which congressional leaders released early Thursday morning as an amendment to legislative vehicle HR-2882, as expected (see 2403190062) includes neither ACP nor rip-and-replace funding.

A Thursday Senate Commerce Committee hearing is likely to highlight stark differences between panel leaders’ competing proposals for a spectrum legislative package, including whether it should mandate sales of specific bands before NTIA completes studies of those frequencies in keeping with the Biden administration’s national spectrum strategy (see 2403120006). Lawmakers’ apparent failure to reach a deal allocating additional money for the FCC’s affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program (see 2403190062) as part of a FY 2024 still-unreleased “minibus” spending package also ratchets up the pressure for a spectrum bill to use future auction revenue to pay for multiple telecom priorities, officials and lobbyists told us.

The Further Consolidated Appropriations Act FY 2024 minibus spending bill released early Thursday morning doesn't include stopgap funding for the FCC's affordable connectivity program or the Secure and Trusted Communications Networks Reimbursement Program, as expected. The measure allocates almost $390.2 million to the FCC for FY24 and $425.7 million to the FTC. It also includes $535 million for CPB in FY 2026, turning back House Appropriations Committee Republicans' attempt to end that entity's advance funding.

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.

Vexus Fiber will pay $100,000 for violating the FCC's affordable connectivity program rules. An Enforcement Bureau order Friday said Vexus admitted it violated the program's rule prohibiting downselling broadband services to ACP-eligible households by "preventing customers from applying the ACP benefit to any residential broadband internet access service plan they selected."

Advocates of additional federal funding for the FCC’s affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program were closely monitoring congressional negotiations Friday in hopes appropriators would reach a deal addressing both priorities as part of a second tranche of FY 2024 spending bills lawmakers want approved before midnight March 22. Rip-and-replace supporters voiced strong optimism that the next “minibus” package would include $3.08 billion to fully fund that program. ACP backers were, at least privately, growing less hopeful of a deal including their priority.

Senate Commerce Committee Chair Maria Cantwell, D-Wash., told us she's considering a clean FCC reauthorization bill that could pay for some of congressional leaders’ telecom priorities but wouldn’t necessarily mandate that the commission begin sales of specific frequencies. Senate Commerce plans a March 21 hearing on that and other spectrum policy issues, Cantwell told us Thursday ahead of a formal panel announcement. Cantwell's proposal would be in line with her pursuit of a slimmed-down measure (see 2403110066) drawing some elements of the stalled House Commerce Committee-cleared Spectrum Auction Reauthorization Act (HR-3565).