Affordable Connectivity Program (ACP)

Pennsylvania’s biggest incumbent, Verizon, launched an all-out attack on state USF in comments Friday, urging that the Pennsylvania Public Utility Commission eliminate the fund. The carrier said the USF is archaic. In addition, AT&T joined Verizon in urging the PUC to reduce regulations, such as carrier of last resort (COLR) obligations. However, rural LECs argued that they will continue needing state USF support for as long as Pennsylvania heavily regulates them.

FCC Commissioner Geoffrey Starks traveled to Nevada with Rep. Steven Horsford, D-Nev., to push for continuing the affordable connectivity program (see 2402120068). "The harms that millions of Americans will face in the absence of ACP are real," Starks said in a statement following the Friday event: "For them, and for a brighter future for our country, we must act." Starks met families and local officials at the Southern Nevada Regional Housing Authority, hearing "what ACP meant to them" and "the challenges that Nevadan families will face in maintaining connectivity if ACP sunsets."

Wireless Infrastructure Association President Patrick Halley Thursday called for Congress to fund an extension of the affordable connectivity program, which is set to expire. Rural networks are expensive to operate and maintain, Halley said: "Losing this broadband subsidy program will force families to make hard choices and will likely lead to many losing connectivity altogether. ... This is not a good result for our country.”

Broadband Grant Tax Treatment Act (HR-889/S-341) lead Senate sponsor Mark Warner, D-Va., is considering attaching the measure’s language to the House-approved Tax Relief for American Families and Workers Act (HR-7024) ahead of the upper chamber’s consideration of the package. Lobbyists question whether there’s sufficient momentum for swift action on HR-889/S-341 despite communications industry interest. Meanwhile, a potential bid to allocate $3.08 billion from an FCC reauction of 197 returned AWS-3 licenses to fully fund the Secure and Trusted Communications Networks Reimbursement Program (see 2401240001) is unlikely to become part of the 2024 National Security Act supplemental appropriations package but could be a factor in talks for other must-pass legislation this year.

Allowing the affordable connectivity program to lapse would have “significant downstream effect” on the economy, said FCC Commissioner Anna Gomez during a Q&A at ITI’s Intersect event Wednesday.

National Rural Electric Cooperative Association CEO Jim Matheson urged leaders of the House and Senate Commerce committees Monday night to “provide additional funding” for the FCC’s affordable connectivity program before its original $14.2 billion allocation runs out in April. Lawmakers are eyeing how to allocate as much as $7 billion in stopgap funding to keep ACP running through the end of this year (see 2401250075). FCC Chairwoman Jessica Rosenworcel confirmed last week that the Wireline Bureau will freeze new ACP enrollments Thursday as part of winding down the program (see 2402010075). “As more cooperatives, and other internet service providers, work to build broadband networks in hard-to-reach rural and low-income areas, affordability will become increasingly critical to adoption of these essential services,” Matheson said in a letter to Senate Commerce Chair Maria Cantwell, D-Wash., House Commerce Chair Cathy McMorris Rodgers, R-Wash., and their ranking members. “Should programs supporting affordability fail, it could jeopardize access to broadband services for millions of customers.” Ensuring “that there is a consistent, dependable, and effective low-income broadband program, such as the ACP, will allow rural providers to deliver the highest quality broadband service to their communities at an affordable price,” said Matheson, a former House Commerce member who represented Utah as a Democrat. Enacting the ACP Extension Act (HR-6929/S-3565), which would infuse $7 billion into the program for FY24 (see 2401100056), “or similar legislation would provide important short-term clarity and certainty ... while Congress works to address questions around the future of the program and develop a permanent funding solution.”

Congress should extend the affordable connectivity program, Wisconsin Public Service Commission Chairperson Summer Strand wrote Tuesday. “The ACP is an effective resource for millions of families,” said Strand. “Access to broadband infrastructure alone is not enough to bridge the digital divide … The path to internet affordability starts by extending the ACP.”

State broadband officials shed some light Tuesday into NTIA’s process for recommending changes to states’ broadband, equity, access and deployment (BEAD) initial plans. NTIA’s so-called “curing" process lacks the transparency from earlier in the process when states sought public comments on drafts, some state and industry officials said during an FCBA webinar. States said they expect to use a mix of network technologies to reach everyone who needs high-speed internet.

FCC Chairwoman Jessica Rosenworcel confirmed to congressional leaders Thursday that the Wireline Bureau will move forward with freezing new affordable connectivity program enrollments Feb. 8 amid the continued push to provide the program stopgap funding to keep it running once its original $14.2 billion allocation runs out in April (see 2401250075). Senate Communications Subcommittee ranking member John Thune, R-S.D., is beginning to cite a recent FCC Office of Inspector General report on its audit of ACP’s 2022 performance (see 2401300090) as vindicating Republicans’ misgivings about the program, which some lobbyists believe may complicate those funding efforts.

FCC Chairwoman Jessica Rosenworcel warned the FCC’s Disability Advisory Committee Tuesday that despite the FCC’s best efforts, the affordability connectivity program will run out of funding in April (see 2401250075). DAC approved a report from its Audio Description File Transmittal to IP Video Programming Working Group. The other four commissioners also spoke Tuesday.