Policy No-Brainer: Extend The Affordable Connectivity Program For 5 Years With $30 Billion

With a $14 billion appropriation from the Infrastructure Investment and Jobs Act (IIJA), the Affordable Connectivity Program (ACP) has enrolled more than 14 million households in a short period of time and may be the most effective broadband benefit program to date with its direct-to-consumer model. The innovative program offers a valuable policy learning opportunity as lawmakers consider sustainable long-term funding options to continue it. Many features of the ACP reflect guidance from policy academics and researchers that supports a model that allows consumers more options. ACP recipients can choose the broadband plan of their choice and are not limited because of credit status or prior debt with the provider. Moreover, as the ACP is universally applicable, it allows consumers to switch providers and plans and does not charge recipients for early termination. There is broad bipartisan support for broadband support for low-income Americans, though the path through Congress is uncertain at this time. Estimates based on current trends show that the ACP is likely to run out of funding by mid-2024. Funding ACP for an additional five years could cost $30-$35 billion. Ideas to create a more sustainable source of funding for the ACP include: reforming the Universal Service Fund (USF); incorporating market solutions; or creating a short-term appropriation for the program through Congressional action.