What the $14.2 billion Affordable Connectivity Fund could mean for broadband providers

Of the $65 billion that the infrastructure bill allocates for broadband projects, $14.20 billion is set aside for the establishment of the Affordable Connectivity Fund. The fund is an extension and reworking of the existing $3.2 billion Emergency Broadband Benefit (EBB) Program, a subsidy program established during the pandemic to help low-income households and Americans laid off during the pandemic stay connected to the internet. While the EBB was seen as temporary, the new fund is seen as more indefinite. Policy experts agree a longer-term broadband subsidy program will be a boon to consumers, but the differences between the original benefit program and the new connectivity fund — both in terms of requirements around eligibility and promotional outreach — mean the new fund could have a greater impact on operators. Also unclear are the effects of the new subsidy program on existing low-income internet plans from broadband providers. The Affordable Connectivity Fund gives the private sector new opportunities to find a more competitive marketplace for their services, according to Brookings senior fellow Nicol Turner Lee; still, Congress needs to ensure that any low-income programs or offerings do not turn into "low-income alternatives" that push consumers into second-class tiers of internet access.