Federal Funding for Affordable Broadband Plans Critical to Achieving Universal Access

Universal access to high-speed internet is achievable. But even with the federal government deploying billions of dollars to expand networks and connectivity, this goal can only be reached if all Americans can afford broadband subscriptions. Federal lawmakers initially allocated $14.2 billion in funding to the Affordable Connectivity Program (ACP), which has enrolled more than 20 million households, becoming a vital tool in the nationwide effort to connect every household and business. But ACP’s future is uncertain: Projections show program funding will run out by spring 2024 unless Congress acts. Here are some key facts lawmakers should have to understand ACP’s critical role and why it needs secure, ongoing funding to help close the digital divide:

• The Cost of High-Speed Internet is a Barrier for Many Americans: Research shows that income level is the greatest indicator of whether households have an in-home broadband subscription. In 2021, 57% of adults with annual household incomes under $30,000 did not have a home broadband subscription, and nearly half said the high monthly cost of a connection was one of the reasons.
• ACP Helps Americans Afford Broadband and Helps Internet Service Providers (ISP) Deliver It: ACP subsidies cover some, but not all, of the cost of broadband subscriptions: Households still pay a median price of $40 per month for internet service. By expanding the number of customers who can afford and maintain subscriptions, the program reduces customer turnover and reduces ISPs’ per-household break-even cost by 25% when building networks in new service locations.
• Failure to Fund ACP Will Harm Consumers, Businesses, and Nonprofits, and Undermine Billions of Dollars in Taxpayer Investments in Broadband Expansion: To ensure a sufficient subscriber base and thereby help defray the cost to taxpayers and ISPs of new or expanded networks, key federal broadband funding streams require providers to participate in ACP. If program funding is allowed to run out, many low-income households may be unable to afford subscriptions, potentially leaving those networks idle and the money spent to create them wasted.