New Brattle Study Finds the Affordable Connectivity Program Pays for Itself

New economic analysis of the Affordable Connectivity Program—which offered monthly broadband service subsidies to low-income households—finds that the economic benefits generated by the program far outweigh its costs. Highlights include:

• By improving access to telehealth alone, the ACP generates an estimated $28.9–$29.5 billion in annual healthcare cost savings. Increased access to virtual care reduces the need for in-person medical visits while generating better health outcomes.
• A switch from one physical visit to telehealth for one single Medicaid recipient could save enough money to fund 5 years of ACP support for one Medicaid recipient.
• Over 80% of the annual costs of the ACP could be offset solely from $6.0 billion in Congressional Budget Office (CBO) scorable telehealth-induced cost savings under Medicaid.
• Reinstating the ACP would improve students’ academic performance and benefit their future earnings by over $3.7 billion per year, starting approximately 10 years after high school.
• $2.1–$4.3 billion in annual wage gains from expanded labor force participation could be generated if the program were reinstated.