Affordable Connectivity Program (ACP)

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."

Charter Communications is warning some states that it won't be interested in broadband equity, access and deployment (BEAD) program opportunities there. States that closely follow NTIA proposed guidelines regarding internet tiers, pricing and labor practices "just won't be attractive states for us to bid in," CEO Chris Winfrey said Friday as the company announced Q3 financial results. He said Charter "will focus our investments in the states that allow us to retain flexibility to run the business, properly respond to market demand and ultimately earn a healthy return."

While Affordable Connectivity Program enrollment numbers are growing rapidly, "there is more work to do" given the gap between the number of households on federal housing assistance eligible to enroll and the number of those enrolled, FCC Commissioner Geoffrey Starks said last week at Housing and Urban Development's ConnectHomeUSA virtual summit, per posted prepared remarks.

The Biden administration’s Wednesday request for Congress to appropriate an additional $6 billion to fully fund the FCC’s affordable connectivity program (ACP) through the end of 2024 (see 2310250075) is drawing initial skepticism from top telecom-focused Republicans amid their push for the commission to be more transparent about how it has been spending the program’s existing $14.2 billion allocation. Congressional Democrats enthusiastically backed the White House’s request, noting it would give Capitol Hill more breathing room to examine whether and how to tie in changes to a longer-term ACP with a push for broader USF revamp legislation. Current estimates peg ACP as likely to exhaust its funding from the 2021 Infrastructure Investment and Jobs Act during the first half of 2024 (see 2309210060).

The Biden administration asked Congress Wednesday afternoon to allocate $6 billion in stopgap funding for the FCC’s affordable connectivity program, more than communications sector officials anticipated last week (see 2310200067). The White House also urged Capitol Hill appropriate an additional $3.08 billion to close the FCC’s Secure and Trusted Communications Networks Reimbursement Program funding shortfall (see 2310120067). The additional ACP money would “strengthen” ACP "by extending free and discounted high-speed internet for eligible households through December 2024,” the White House said in a fact sheet. ACP “is already helping over 21 million households save over $500 million per month on their monthly internet bills.” The program is “critical for the Administration’s high-speed internet deployment programs for rural, remote, and Tribal communities,” the administration said: “Without this funding, tens of millions of people would lose this benefit and would no longer be able to afford high-speed internet service without sacrificing other necessities.” USTelecom CEO Jonathan Spalter hailed the administration for seeking the ACP stopgap, saying the program “is a critical part of reaching our shared goal of universal connectivity” and “has already enabled more than 21 million low-income households to participate in our digital economy. We urge Congress to find a long-term solution to sustain this vital program.”

The Biden administration is expected to seek about $4 billion in additional money for the FCC’s affordable connectivity program as part of a second part of the supplemental federal funding request it will send to Congress this week, communications sector lobbyists told us. House Democratic leaders are already highlighting the to-be-announced money as a priority alongside the stalled regular FY 2024 appropriations process once the chamber can elect someone to replace ousted Speaker Kevin McCarthy, R-Calif.

Rework proposed rules for a $750 million broadband program to “meaningfully prioritize unserved communities,” the California Broadband and Video Association (CalBroadband) urged the California Public Utilities Commission in comments Wednesday. The California Public Utilities Commission could vote Nov. 2 on a proposed decision for the broadband loan loss reserve fund (BLLRF). The Center for Accessible Technology (CforAT) and Rural County Representatives of California (RCRC) applauded proposed rules.

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.

LONG BEACH, Calif. -- The Affordable Connectivity Program enjoys general bipartisan support in Congress, but it's soft support, with ACP's looming lack of funds still not rising to the level of lawmakers' top priority, said Angelina Panettieri, National League of Cities legislative director-technology and communications, at NATOA’s annual conference Thursday. Several speakers urged localities to be active in weighing in on states' broadband equity, access and deployment (BEAD) program plans, especially with advocacy on the challenge process design. "This is a zero sum game” since an inappropriately targeted BEAD subsidy means less money for areas with real needs, said Brian Roberts, policy analyst-city and county of San Francisco.

Broadband experts raised concerns about the affordability requirements for middle-income households through NTIA's broadband, equity, access and deployment program, speaking during an American Enterprise Institute event Monday. Some said imposing pricing requirements and the FCC's efforts to reclassify broadband as a Title II service could hurt the BEAD program's deployment goals (see 2309280084).