The Affordable Connectivity Program Creates $16.2 Billion in Annual Benefits to Subscribers

Created by Congress in 2020 and renewed in 2021, the Affordable Connectivity Program (ACP) is helping 23.3 million households afford internet access. But funding for ACP—the largest, most successful internet affordability program in US history—is set to expire on May 30, 2024. This week, President Joe Biden proposed short- and long-term funding solutions in his budget. And a House bill to provide funding through the end of 2024 had 180 cosponsors in the House of Representatives. For anyone who may question the investment in affordable broadband, I’ve just completed an analysis of existing research that demonstrates that ACP creates $16.2 billion in annual benefits to users of the service subsidy, nearly twice the $8.4 billion it costs for the $30 monthly subsidy (which increases to $75 per month in Tribal lands and high-cost areas). In other words, every $1 of ACP service subsidy results in close to $2 in benefits. The upshot is clear: ACP can have positive impacts on beneficiaries’ lives—benefits that are much greater than the program’s costs. As policymakers consider the ACP’s future, they should do so knowing that the program’s costs have positive and substantial payoffs.

[John B. Horrigan is a Benton Senior Fellow and a national expert on technology adoption, digital inclusion, and evaluating the outcomes and impacts of programs designed to promote communications technology adoption and use.]