Affordable Connectivity Program (was Emergency Broadband Benefit Program)

In an era where internet access is as essential as water and electricity, many residents in Los Angeles remain digitally left behind due to rising costs, poor service quality, and discrimination. This report delves into the growing movement for publicly owned internet services, highlighting successful municipal broadband for all initiatives across the nation. These initiatives have proven effective in increasing access, lowering costs, and fostering stronger community engagement.

The Affordable Connectivity Program (ACP) was a crucial resource that made the internet more affordable for the 23 million households previously enrolled. ACP—which offered $30 per month for internet bills, $75 per month on Tribal lands, and a one-time discount for devices—was a safety net for eligible households, particularly those living in rural and underserved areas.

The internet plays an essential, everyday role in the lives of Americans. Internet access—both fixed and mobile—is a critical resource that allows individuals and families to participate in work and education opportunities, receive telehealth services, access public benefits and services, communicate with loved ones, and more.  Yet affordability remains one of the primary barriers to reliable broadband access.

The Affordable Connectivity Program lapsed in May 2024. At the time the program ended, there were more than 13 million ACP recipients getting a discount on a cellphone plan and 10 million getting a discount on landline broadband.

Comcast's broadband business showed some surprising strength as the operator said it would've gained broadband subscribers in Q3 2024 if not for the demise of the Affordable Connectivity Program (ACP). Comcast lost 87,000 broadband subs in the third quarter, comprised of a loss of 79,000 residential customers and 8,000 business customers, lowering its grand total to 31.98 million.

A bipartisan group of senators is looking into Universal Service Fund (USF) reform and, even better, there are solutions on which both parties can agree.

Subsidies like the Affordable Connectivity Program (ACP) are unaffordable and set communities up for failure, according to Eric Sasaki, the manager of major programs at L.A. County’s internal services department. To address the digital divide in Los Angeles County, Sasaki said the county has chosen another path. “We were very flexible in terms of how we approached our model,” Sasaki said.

When millions of Americans cast their ballots on Election Day, the Affordable Connectivity Program won't be up for a vote, but the results could dictate whether we see an internet subsidy of its size again. The ACP was passed in 2021 as part of the Infrastructure Investment and Jobs Act, when Congress dedicated $14.2 billion to making the internet more affordable to low-income users.

Broadband is one of the last remaining, truly bipartisan issues, according to Chip Pickering, the CEO of Incompas. Pickering said there might be a movement in Congress to restore and modernize broadband subsidies to help low-income earners afford services. “It is a national consensus and commitment of connecting every American,” said Pickering, who also served for 12 years in Congress representing Mississippi’s 3rd congressional district.

The Enforcement Bureau of the Federal Communications Commission has entered into a Consent Decree to resolve its investigations into whether AT&T violated the FCC’s Emergency Broadband Benefit Program (EBB) and Affordable Connectivity Program (ACP) rules. To settle these matters, AT&T agrees to a total settlement value of $2,299,990 to fully resolve the FCC’s investigations, which includes (i) a civil penalty of $1,921,068, and (ii) repayment to the United States Treasury in the amount of $378,922.