Closing the Digital Divide With the Affordable Connectivity Program

The federal government is in the process of deploying billions in broadband funding—including more than $80 billion in the Infrastructure Investment and Jobs Act (IIJA) and American Rescue Plan Act (ARPA) dollars—to ensure that every American has access to reliable, high-speed internet. But even when infrastructure investments deliver network access to unserved and underserved communities, families won’t benefit unless they can afford internet service. In fact, a 2021 survey of unconnected households found that the mean price respondents said they could pay was $10, but a majority said zero. Moreover, given the influence of cost on customer demand and the high capital costs of deploying broadband, internet service providers have little reason to upgrade existing networks or build new ones in low-income areas. Although public funds such as loans or grants can help offset the cost of capital expenses, internet service providers (ISPs) require additional funding to keep these high-cost communities online. In 2021, Congress took action on these supply and demand issues by establishing the Affordable Connectivity Program (ACP). This program has become a vital tool in securing broadband access, with more than 18 million households enrolled in the program. Enrollment has been high in both rural and urban areas, polling shows strong, bipartisan support for ACP among voters, and the program plays a critical role in meeting the Congressional mandate that every American household have access to high-speed, affordable internet. But despite this success, ACP is projected to run out of funds by March 2024 unless Congress acts. Failure to reauthorize ACP could also jeopardize the success of other federal broadband access initiatives.