Affordable Connectivity Program (was Emergency Broadband Benefit Program)

Service providers will not be required to list information related to the Affordable Connectivity Program (ACP) on their broadband labels, according to guidance issued by the FCC's Wireline Competition Bureau (WCB) on Monday.

The Federal Communications Commission is poised to raise taxes through its Universal Service Fund—a regressive, hidden tax on consumers' phone bills that funds a series of unaccountable, bloated internet subsidy programs. Rather than giving the FCC carte blanche to expand its balance sheet, Congress must reform the USF's structural problems, reevaluate its component programs, and get the FCC's spending under control. Here is my plan to do that. 

April will officially be the last full month for the Affordable Connectivity Program (ACP) due to insufficient funding. The FCC will let providers know soon about the amount to expect per customer in May, leaving the providers with a choice to make. Should they end their participation in the program after April? Should they pass on a partial benefit to customers for May and require the customers to pay the extra portion?

This white paper ultimately represents the story of how our newly formed office found an efficient and effective way to address the digital divide in our community through the development of a novel local benefit program, as told by our associate Augusta Groeschel-Johnson.

The Federal Communications Commission formally notified Affordable Connectivity Program (ACP) providers that, due to a lack of additional funding from Congress, the agency will only be able to fully fund the program through the month of April. The Public Notice also (1) provides guidance on the May 2024 partial reimbursement month; (2) reminds participating providers of the notices they must send to ACP households; and (3) provides guidance on the consumer protections for ACP households during wind-down and after the ACP ends.

23,269,550. This was the number of households participating in the Affordable Connectivity Program (ACP) when enrollment closed on February 8th, 2024. It is more than one out of every six households in the United States. But 23,269,550 is also a very high precipice from which to fall. If the ACP ends, all enrollees will experience some combination of bill shock, disconnections, financial sacrifice, service downgrades, and/or household debt.

In the final days of 2020, Congress approved a COVID-relief package that included $3.2 billion for the Federal Communications Commission to establish the Emergency Broadband Benefit Program to help households that were struggling to afford broadband. The program was up-and-running by spring, and the public’s response was overwhelming. It immediately became clear that demand for this program was going to outlast the pandemic, and Congress responded with a longer-term solution to the broadband affordability challenge.

In December 2023, the Federal Communications Commission conducted a survey of Affordable Connectivity Program (ACP) recipients to enhance its understanding of the program's impact and how the end of the program may impact access to broadband services. Survey respondents were also given the opportunity to submit written responses to questions about how losing ACP support would impact them.

In less than two months, if Congress does not act, tens of millions of people could find themselves unable to stay connected to high-speed internet.

Our federal deficit is exploding, and America’s financial house is in disarray. The country’s borrowing costs are at their highest level in over 20 years, and the national debt has surpassed $34 trillion for the first in history. In this environment, implementing stringent fiscal policy should be the standard operating procedure for all conservatives.