Affordable Connectivity Program (ACP)

A top California communications lawmaker pushed back on industry opposition to a bill that would require $30 affordable internet plans as a condition of receiving California Advanced Services Fund (CASF) infrastructure grants. The Assembly Communications Committee voted 8-2, with two Republicans voting no, to advance SB-424 at a Wednesday hearing. In addition, the committee voted 10-0 for bills that set broadband labor standards (SB-1460) and expand eligibility for CASF public housing broadband grants (SB-1383). All three pieces of legislation, previously passed by the Senate, will go to the Appropriations Committee.

Contrary to some expectations, a draft order and Further NPRM allowing schools and libraries to use E-rate support for off-premises Wi-Fi hot spots and wireless internet services wasn’t expanded to include fixed wireless access and partnerships with nontraditional providers, based on the text of the draft released Thursday. Commissioners will vote July 18.

House Democrats rang alarm bells Wednesday over the Appropriations Commerce, Justice, Science and Related Agencies (CJS) Subcommittee’s proposal reducing FY 2025 allocations for NTIA and other Commerce Department agencies. The subpanel advanced its FY25 bill on a voice vote Wednesday after Republicans defended the proposed cuts, including a significant slashing of annual funding for the DOJ Antitrust Division. Commerce Secretary Gina Raimondo fielded repeated questions during a House Innovation Subcommittee hearing Wednesday about Republicans’ claims that NTIA’s requirement that broadband equity, access and deployment (BEAD) program participants offer a low-cost connectivity option constitutes rate regulation.

The Affordable Broadband Campaign and WTA asked the FCC to reconsider its decision granting ISPs forbearance from Communications Act Section 254(d), which governs USF contributions. The contribution mechanism isn't "stable or equitable" and the declining revenue base is "hindering the ability of the commission to ensure that universal service is properly evolving," the groups said in a petition filed Monday in docket 23-320. The FCC granted ISPs forbearance in its May order restoring its net neutrality framework and reclassification of broadband as a Title II telecom service (see 2404190043).

Congress should renew the affordable connectivity program (ACP) and protect local authority in the right of way (ROW), mayors attending the U.S. Conference of Mayors conference said Sunday. City leaders adopted resolutions on ACP, ROW compensation and opposing the American Broadband Act (HR-3557), which is a package of GOP-led connectivity permitting revamp measures (see 2311060069). The conference adopted the resolutions as part of a unanimous consent agenda Sunday after the Technology and Innovation Committee approved them unanimously Friday. ACP “has been one of the most effective broadband benefit programs to date with its direct-to-consumer model to enroll low-income households and help ensure they can afford the internet connections they need for work, school [and] healthcare,” the first resolution said: The conference urges Congress to renew and extend ACP this year “to ensure eligible households have access to affordable high-speed internet.” The second resolution on local compensation noted that some members of the FCC, Congress and state legislatures “have wrongly characterized this balancing act among competing interests for the public rights-of-way and maintenance of local authority as a barrier to broadband deployment, putting the interests of national corporations ahead of the needs of communities by effectively granting those corporations subsidized access to local public rights-of-way that do not belong to the federal or state government.” Congress should pass a bill amending the Cable Act’s franchise fee section to correct the FCC and the 6th U.S. Circuit of Appeals misreading of the act “and make clear that no other provision of the Cable Act limits or preempts state or local fees or taxes on cable operators or on the non-cable services they provide,” it said. Also, Congress should approve the Protecting Community Television Act (HR-907 and S-340) “to make clear that the cost of non-monetary franchise obligations do not constitute a ‘franchise fee’ under the Cable Act,” the resolution said. And the FCC should act soon on a related remand from the 6th Circuit that has been waiting for action for more than two years, it said. The third resolution urged that Congress drop HR-3557, which “would bestow on broadband providers an unprecedented federal grant of access to state and local public property but impose no obligations on those providers to serve ‘unserved’ and ‘underserved’ Americans.”

Supporters of the FCC's expired affordable connectivity program acknowledge the Senate Commerce Committee’s impasse (see 2406180067) on the Spectrum and National Security Act (S-4207) may spur a reexamination of alternatives for addressing broadband pricing. This realization comes amid weakening odds that Congress can address ACP funding via a broader package aimed at restoring the FCC's lapsed airwaves sales authority. Lawmakers continue insisting a legislative solution is possible this year even though Senate Commerce’s cancellation of its planned Tuesday markup of S-4207 (see 2406170066) was its fourth pulling of the measure since early May. Other stakeholders are urging a shift to emphasizing nonlegislative solutions.

Public recriminations escalated Monday night and Tuesday after the Senate Commerce Committee yanked a planned committee vote on the Spectrum and National Security Act (S-4207) for the fourth time (see 2406170066). The panel described Tuesday's markup as “canceled” but characterized previous situations as postponed. Senate Commerce planned a vote on a revised version of the measure (see 2406140062) Tuesday that the Commerce Department, DOD and the Joint Chiefs of Staff endorsed last week. Observers cited the finger-pointing to justify their doubts that there's a path forward for the measure or another major spectrum package during this Congress.

Revisions to the Spectrum and National Security Act (S-4207) last week (see 2406140062) have at least solidified Democrats' support for the measure ahead of a planned Tuesday Senate Commerce Committee vote, lobbyists told us. The more doubtful wild card is whether any Republican panel members publicly back the measure Tuesday despite Chair Maria Cantwell, D-Wash., making revisions that reflect their desire to protect military interests, lobbyists said. Several believed there was still a strong chance Senate Commerce would again postpone a vote on S-4207 after already yanking it from the agenda three times (see 2406110079). The panel’s meeting is set to begin at 10 a.m. in 253 Russell.

State lawmakers may be more inclined to pursue broadband affordability policies in the wake of recent FCC and court rulings as well as last month's ending of the federal affordable connectivity program (ACP), multiple telecom experts said last week. Connecticut Senate Majority Leader Bob Duff (D) told Communications Daily he hopes “these developments will lead to stronger support in 2025” for an affordable broadband proposal that failed this year. However, some anticipate ISPs will likely object, and fiscal constraints could limit states' efforts.

The House Appropriations Committee continued debating Thursday afternoon the Financial Services Subcommittee’s FY 2025 funding bill, which increases the FCC’s annual allocation to $416 million and decreases the FTC’s annual funding to $388.7 million (see 2406050067). Communications policy lobbyists said panel Democrats might attempt removing riders from the measure that bar the FCC from using funding for implementing its net neutrality and digital discrimination orders, but they hadn’t sought votes on such amendments at our deadline.