ACP funding lapse imminent despite various paths forward

As May nears its final days, so does the Affordable Connectivity Program (ACP). The ACP, which entered a partial payment period at the start of the month, will officially end on May 31, unless Congress decides to save it. While there are myriad efforts underway to compromise on a path forward, saving the program is still seen as unlikely. "As time goes on, the ISPs and ACP recipients will adjust to a post ACP world, with new funding and new requirements adding to what is already an administrative and customer service challenge," said Blair Levin in an analyst note for New Street Research. The latest and ongoing paths under consideration are:

• On May 20, House Rep. Brandon Williams (R-NY) announced new legislation to fund the ACP with $6 billion, with alterations. Dubbed the Affordable Connectivity Program Improvement and Extension Act of 2024, the legislation would refund the ACP with $6 billion by amending the Consolidated Appropriations Act of 2024.
• Efforts are still somewhat underway to fund the ACP via spectrum legislation, through a proposal from Senator Maria Cantwell (D-WA). However, a Senate markup session on that bill was twice delayed, and leading Democrats and Republicans remain at odds, with Sen. Ted Cruz (R-TX), an ACP opponent, proposing an amendment to slash the benefit in urban areas and spend half of ACP's budget on auditing.
• Following the failure to amend the FAA bill, Sen. Ben Ray Lujan (D-NM) introduced that amendment as a standalone bill in the Senate. As of this writing, the bill text had yet to be published, but the legislation had five bipartisan co-sponsors, including: Senators JD Vance (R-OH), Steve Daines (R-MT), Roger Wicker (R-MS), Peter Welch (D-VT) and Jacky Rosen (D-NV).
• The ACP Extension Act, a bill in the House to fund the program with $7 billion—introduced by Rep. Yvette Clarke (D-NY) in January—still has the most visible bipartisan support, with 230 co-sponsors, including 24 Republicans, according to congress.gov. But neither that bill, nor a discharge petition to vote on the bill without the blessing of House Speaker Mike Johnson (R-LA), has seen movement, despite technically having enough support to pass the House.