Digital Divide

A group of 33 senators urged Senate leadership to include funding for the Affordable Connectivity Program (ACP) as part of future must-pass legislation, including the next government funding package. We write to urge you to take immediate action to fund the Affordable Connectivity Program (ACP) and the Secure and Trusted Communications Networks Reimbursement Program. Both of these programs are vital for closing the digital divide, by making connectivity affordable to millions of working families and ensuring providers are able to continue serving rural communities.

Created by Congress in 2020 and renewed in 2021, the Affordable Connectivity Program (ACP) is helping 23.3 million households afford internet access. But funding for ACP—the largest, most successful internet affordability program in US history—is set to expire on May 30, 2024. This week, President Joe Biden proposed short- and long-term funding solutions in his budget. And a House bill to provide funding through the end of 2024 had 180 cosponsors in the House of Representatives.

There’s a lot of talk about how the Rural Digital Opportunity Fund (RDOF) might make a mess of things with the Broadband Equity, Access & Deployment (BEAD) program. That’s because if a location is covered by an RDOF award, then it’s ineligible for a BEAD grant. Unfortunately, many RDOF awardees have officially defaulted on their obligations to build fiber, or they just haven’t made any progress in deploying the fiber.

This week, the Biden-Harris Administration announced its proposed 2025 fiscal year (FY) budget. According to the White House, President Biden's top economic priority in the FY 2025 budget is to lower costs for American consumers–reducing junk fees, lowering healthcare costs, and the prices of everyday goods and services.

On March 9, 2024, President Joe Biden signed the Consolidated Appropriations Act, 2024 (H.R. 4366) legislation that funds, through September 30, departments and agencies of the Federal Government covered by six appropriations bills. Here we look at broadband-related funding for the U.S. Department of Agriculture (USDA) and the U.S. Department of Commerce's National Telecommunications and Information Administration (NTIA). 

On March 14, the Federal Communications Commission adopted its annual assessment of whether broadband is being deployed in a reasonable and timely fashion.

Federal broadband expansion efforts aim to ensure that every American household has a reliable and affordable internet connection in order to learn, work and access online services. But even with a fiber connection, many challenges still stand in the way of access to the internet and digital services. Some are unable to afford the necessary devices or internet services. Others lack a high-quality connection or digital literacy skills altogether.

Even though there are enough Republicans in Congress to pass an extension of the soon-expiring Affordable Connectivity Program, industry observers are pessimistic about its passage. Because House Speaker Mike Johnson (R-LA) is not supportive, said Blair Levin, the measure is unlikely to get a vote before the House of Representatives. Paul Gallant, a technology policy analyst for investment bank TD Cowen, agreed. “Congress is probably going to do nothing,” said Levin. "If it were to hit the floor, it would pass, and I don’t think Speaker Johnson is going to let it go to the floor.

I believe we can’t ignore the history of our industry if we want to avoid the worst of it from happening again. There are a variety of factors that led to the rural mess that created the need for BEAD and other broadband grant programs. I think the downward trajectory started with the divestiture of AT&T into AT&T as a long-distance company and large regional telephone companies. The newly-formed company lobbied hard to be able to make profits over and above the low, but steady profits that could be earned by a regulated utility.

The Eliminating Barriers to Rural Internet Development Grant Eligibility (E-BRIDGE) Act removes hurdles for broadband projects under Economic Development Administration (EDA) grants, including difficult last-mile efforts that often delay rural broadband deployment.  It also ensures that local communities can partner with the private sector in carrying out broadband projects and gives communities more flexibility in complying with their funding match requirements.