University of Southern California

This report presents the main findings from the 2023 Statewide Survey on Broadband Adoption Survey.

A look at potential changes to the Affordable Connectivity Program (ACP) eligibility criteria based on participation in social benefits programs such as Medicaid, Supplemental Nutrition Assistance (SNAP), Supplemental Security Income (SSI) and Public Assistance Income (PAP). These potential changes would have broad impacts since the National Verifier (NV) uses program participation rather than income to confirm eligibility for over 90 percent of ACP applications.

Congress is discussing a number of different scenarios to continue funding the Affordable Connectivity Program once the remaining funds are depleted, which is projected to happen in the first half of 2024. Several of the scenarios being considered involve changes to the current eligibility criteria. Here we examine the potential impact of lowering the household income eligibility threshold, currently set at 200 percent of the federal poverty line (FPL).

Discussions about funding for social programs are too often framed along predictable partisan lines. However, the reality on the ground is frequently more complex, and the Affordable Connectivity Program (ACP) is no exception.

The Affordable Connectivity Program (ACP) is the most ambitious federal initiative put into place to bridge the broadband connectivity gap for low-income Americans. The ACP launched in January 2022, serving almost 10 million households that were transitioned from the Emergency Broadband Benefit program (EBB). By the end of 2022, it had enrolled another 5.4 million households for a total of about 15.4 million subscribers in December 2022. Using data from the ACS 2021 1-year estimates, our estimation is that about 55.3 million households are eligible for ACP.

How can policymakers best estimate Affordable Connectivity Program (ACP) eligibility and participation rates? The key finding here is that using 200% of the Federal Poverty Level as the only eligibility criteria significantly undercounts eligible households and therefore inflates participation rates. Further, the undercount varies significantly across states (which we hypothesize is linked to whether states expanded Medicaid eligibility after 2010).

The phase-out of the Emergency Broadband Benefit Program (EBB) and the transition to the new Affordable Connectivity Program (ACP) represents an opportunity to take stock of the EBB program’s impact, and adjust key parameters to enhance the impact of the ACP.

This study examines how far is California from the goal of making 100 Mbps broadband available to all as laid out by Governor Gavin Newsom in August 2020. The study also discusses the broadband proposals (AB-14 and SB-4) currently before the California legislature. Among the key study findings are: