New Suspension and Removal Rules for the Affordable Connectivity Program To Have Major Impact on Participating Providers

On March 16, 2022, the vast majority of the new rules for the Affordable Connectivity Program (ACP) – the successor program to the Emergency Broadband Benefit (EBB) Program created by Congress in 2021 to help offset the cost of broadband subscription and broadband-capable devices for qualified low-income consumers – became effective. One of the biggest differences between the pre-existing rules for the EBB Program and the new rules for the ACP is the adoption of new involuntary removal rules modeled after the Office of Management and Budget (OMB) Guidelines to Agencies on Government Debarment and Suspension. Under the new suspension and removal rules for the ACP, a participating carrier could be subject to a suspension or removal proceeding by the Federal Communications Commission not only for violations of the rules or requirements of the ACP or its predecessor EBB Program, but also the Lifeline program, the Emergency Connectivity Fund (ECF) Program or successor programs, as well as any of the FCC’s Universal Service Fund (USF) programs. Given that there are over 1,200 participating providers in the ACP, and that the OMB Guideline departs from existing suspension and removal procedures for USF program participants in a few significant ways, all participating providers of ACP should review the new rules carefully to understand their potentially far-reaching impact and ensure ongoing compliance with the program requirements.

[Shawn Chang, Edgar Class and Charles McKee are partners at Wiley.]