Infrastructure Investment and Jobs Act

On May 2, the Senate will hold a hearing on “The Future of Broadband Affordability.” The Affordability Connectivity Program (ACP) that provides subsidies for more than 20 million low-income households will expire in May. Without the extension, these families will see the cost of the internet service increase by up to $30 per month and prompt some families to drop internet service altogether.

Sen John Fetterman (D-PA) introduced the Promoting Affordable Connectivity Act which would sustainably fund the Affordable Connectivity Program (ACP) by removing it from the appropriations process and incorporating it into Universal Service Fund (USF) distribution. The ACP has provided discounts on internet service to more than 23 million households—including over 700,000 in Pennsylvania—that could not otherwise afford it.

More than 23 million low-income American households will soon see a new line item in monthly expense statements: prohibitively expensive internet bills. For some, the new cost will eat into other essential areas of their budget—for others, it will mean going without the internet altogether. While the federal price tag for monthly internet subsidies under the Affordable Connectivity Program comes to $8.4 billion annually, our research indicates that, for low-income communities, the economic impact of losing the ACP will be more than twice that.

May 1 begins the final month that Affordable Connectivity Program households will receive any benefit on their internet bills. Without Congressional action to extend funding for the program, millions of Americans will see their internet bills go up or lose internet access at the end of this month.

Elon Musk’s satellite internet service, Starlink, is expected to play a role in the Biden administration’s $42 billion program to bring high-speed internet to every American home, as Washington comes up against some hard math in its effort to build networks reaching the most remote corners of the nation. The growing discussion of using Starlink to fill in coverage gaps is an acknowledgment of just how expensive and challenging it would be to run new internet cables up every mountain and down every valley nationwide.

A group of bipartisan US senators and representatives have called for an additional $7 billion that would extend the Affordable Connectivity Program through the end of 2024. The White House has expressed support, but the proposal hasn’t yet advanced in Congress. In the meantime, some ISPs are offering short-term subsidies and new discount plans to try to support low-income households that were previously relying on ACP.  First implemented in 2021, the ACP was part of a massive, $1.2 trillion Biden administration deal called the Infrastructure Investment and Jobs Act.

This Memorandum of Understanding (“MOU”) is entered into by the Federal Communications Commission and the Federal Trade Commission for the purpose of facilitating their joint and common goals, obligations, and responsibilities to protect consumers and the public interest. The Agencies recognize and acknowledge that each agency has legal, technical, and investigative expertise and experience that is valuable for rendering advice and guidance to the other relating to the acts or practices of Internet service providers. It is agreed that: 

President Biden’s Investing in America agenda is making once-in-a-generation investments in America’s infrastructure and our clean energy future that are creating good-paying and union jobs, establishing and growing new industries in the United States, tackling the climate crisis, and helping lower costs for families. To deploy these investments, the Biden-Harris Administration has taken aggressive action to accelerate project permitting and environmental reviews.

The ACCESS BROADBAND Act requires the National Telecommunications and Information Administration's Office of Internet Connectivity and Growth (OICG) to submit to relevant congressional committees and publish on its website an annual report that contains a description of OICG’s work for the previous year and the number of U.S.

Since 2021, struggling Americans have made ends meet with the help of a popular federal benefit known as the Affordable Connectivity Program (ACP), which covers home internet service. But in just a few weeks their internet bills could skyrocket by hundreds of dollars a year. That’s because the ACP is running out of funds—and Congress shows no signs it will approve more. Policy experts have described the situation as a fast-approaching economic crisis and a major step backward for closing the digital divide between internet haves and have-nots.