Lifeline/Low-Income Consumers

The US Department of Agriculture (USDA) is investing $63 million to bring high-speed internet access to people living and working in rural areas in Illinois, Michigan, Minnesota, and Mississippi. The investments include funding from the Infrastructure Investment and Jobs Act. The $63 million in grants comes from the third funding round of the ReConnect Program, in which USDA invested a total of $1.7 billion. The four projects being funded are:

It was worth the wait. The third round of the US Department of Agriculture's ReConnect Loan and Grant Program closed in 2022, after awarding $759 million in rural broadband grants and loans to 49 deployers, mostly small local exchange carriers (LECs). The average cost of passing each home, farm, other business, or school was just over $4,500, compared to $4,100 in 2019 and almost $6,000 in 2020. All awardees in this round, and almost all in previous rounds, told USDA they were deploying fiber to the premises.

T-Mobile is expanding its participation in the federal government’s Affordable Connectivity Program (ACP) through its Lifeline Assistance brand – Assurance Wireless. Lifeline is a Federal Communications Commission program for low-income consumers, which provides a discount on qualifying monthly phone and broadband services. T-Mobile said that it is offering ACP in seven more states, bringing the total number to 48 states and the District of Columbia.

In response to the impact of the COVID-19 pandemic in the US, the Federal Communications Commission's Wireline Competition Bureau has waived certain Lifeline program rules in thirteen previous Orders to provide relief for low-income households. The Bureau finds good cause exists to continue to waive the Lifeline recertification and re-verification requirements for those Lifeline subscribers residing on Tribal lands through April 30, 2023.

Here’s what the Federal Communications Commission will consider at our February open meeting.

The National Lifeline Association (NaLA) announces the establishment of the National Agent Coalition (NAC), the national trade association for distributors and representatives who conduct in-person enrollment into the Lifeline and Affordable Connectivity Programs (ACP). NAC will serve as a voice for agents, who are on the front lines of bridging the digital divide through these programs. They will support the industry by providing resources for agents, increasing agent impact and ensuring eligible consumers are enrolled.

Reducing the broadband affordability gap is an important and noble goal. Unfortunately, it is far from clear whether Lifeline, the federal program tasked with getting low-income households online, actually addresses this problem. For over a decade, academics, government watchdogs, and independent auditors have criticized the Federal Communications Commission’s inability or unwillingness to measure the program’s effectiveness—while private studies suggest much of this spending may be misdirected toward families at no risk of losing internet access.

The year 2023 could prove to be a volatile year for the Federal Communications Commission as it wrestles with a number of lawsuits concerning its Universal Service Fund (USF) program.

Federal Communications Commission Chairwoman Jessica Rosenworcel appointed seven members to the Board of Directors of the Universal Service Administrative Company (USAC). The three-year term for these positions begins on January 1, 2023.

The Lifeline program and the Affordable Connectivity Program (ACP) serve a vital role in providing low-income Americans with affordable access to essential communication services. Between November 21 and December 8, 2022, the National Lifeline Association (NaLA) surveyed more than 60,000 customers who use the Lifeline and/or ACP program about who they are and how they use the programs. Survey results indicate that low-income consumers use Lifeline and/or ACP service to connect to family and to access other government programs, healthcare, jobs and online education.