Is the Affordable Connectivity Program doomed?

The fate of the Affordable Connectivity Program (ACP) hangs in the balance. Amid warnings that the internet subsidy program will shut down this spring without additional funds, Congress proposed legislation that would allocate another $7 billion to the ACP pool. But chances of the bill becoming law is “significantly below 50%,” said New Street Research’s Blair Levin. The $7 billion allotment is slightly higher than the $6 billion figure the Federal Communications Commission requested, saying it would extend ACP benefits through the end of the year. Just under $4 billion remains in the program’s funding pot. An ACP shutdown would have a rippling effect on consumers, internet service providers, and BEAD. “ACP is the best program we've ever had to address the affordability component of the digital divide,” said Joe Kane, director of broadband and spectrum policy at the Information Technology and Innovation Foundation. “Letting ACP [lapse] would be a significant step backward in broadband policy,” he concluded.