The Value of $7 Billion: The Affordable Connectivity Program and the Future of Access and Adoption

The Affordable Connectivity Program (ACP) provides eligible customers a discount of up to $30 per month for broadband services. The benefits of the ACP—especially compared to other programs—is that it is tech-neutral; it does not limit users to a specific means of connection and gives customers choices over what service they want. Absent congressional intervention, the program is due to run out of funding as early as April 2024. Federal Communications Commission Chairwoman (FCC) Jessica Rosenworcel has warned congressional leaders they will begin winding down the program and stopping new enrollment on February 7, 2024 if there is no additional funding. With the end date approaching and 23 million customers waiting with baited breath, the question remains what is the future of the ACP? The best chance of preserving the ACP as a permanent program is to roll it into a future Universal Service Fund (USF) Program. Unlike the ACP which depends on congressional appropriations, the USF Program is funded by a tax on interstate end-user revenues. Congress is in a perfect position to make reforms to the USF Program that reflects the modern connected landscape and maintains a light-touch program that gives customers flexibility to choose services that suit their needs, without additional burdens to providers.