Low-income

One of President Biden’s top economic objectives is “lowering prices” for high-speed internet. Central to the Biden Administration’s plan to accomplish this goal is the Affordable Connectivity Program (ACP). ACP is based on a temporary program initiated during the COVID-19 pandemic to provide a subsidy for eligible low-income households. The subsidy is paid directly to participating broadband service providers. Contrary to the President’s intentions,  ACP enrollment is associated with higher monthly charges for fixed broadband internet.

With less than four months before the projected Affordable Connectivity Program end date and without any immediate additional funding, the Federal Communications Commission expects to begin taking steps to start winding down the program to give households, providers, and other stakeholders sufficient time to prepare. The FCC expects funding to last through April 2024, and run out completely in May 2024. The FCC has released a fact sheet on the ACP which can be viewed here.

On January 8, 2024, Federal Communications Commission Chairwoman Jessica Rosenworcel wrote a letter updating lawmakers on the status of the Affordable Connectivity Program (ACP). Launched in 2021 under the Infrastructure Investment and Jobs Act, the Affordable Connectivity Program is the largest internet affordability program in US history, and has enrolled nearly 23 million households, helping close the digital divide by bringing more households online. The FCC expects funding for the ACP to last through April 2024, and

New polling shows that the Affordable Connectivity Program (ACP) continues to be overwhelmingly popular among Republican, Democratic, and Independent voters alike. Among Independents, the margin of support for ACP has jumped from 40 percent to 56 percent over the last year.

Illinoisans paid the highest state and local taxes for wireless cell phone service in the nation in 2023, spending more monthly than the combined rates of the two lowest states—Idaho and Nevada. Illinois wireless plan holders paid 23% in state and local taxes, fees and government surcharges on their monthly wireless bills in 2023. Residents in each state also paid 10.8% in federal taxes to the Universal Service Fund for cell phone service in 2023. That gave Illinois a grand total of 33.8% in government taxes on the cell bills compared to the 24.5% U.S. average.

The Texas Broadband Development Office (BDO), under the Texas Comptroller of Public Accounts, developed the Texas Digital Opportunity Plan to guide non-infrastructure-related digital opportunity investments. Another aim is to position the BDO to receive State Digital Equity Capacity Grant Program funds from the U.S. Department of Commerce's National Telecommunications and Infrastructure Administration (NTIA).

FloridaCommerce announced that more than $13 million in broadband grant funding is available through the Capital Projects Fund Digital Connectivity Technology Program to connect communities with digital devices. The program connects communities in need of broadband Internet access with funds for devices and equipment for digital workforce, education, and healthcare opportunities — like applying for a job, securing a degree, and attending a telehealth appointment.

The Florida Department of Commerce (FloridaCommerce) released the State of Florida’s Digital Adoption and Use Plan for public comment. FloridaCommerce developed this plan to serve as the state’s benchmark and roadmap for closing the digital divide and increasing digital access across the state.

The North Carolina Department of Information Technology’s (NCDIT) Division of Broadband and Digital Equity developed the North Carolina draft Digital Equity Plan. This plan is a comprehensive strategy that aims to ensure all individuals and communities have access to the digital tools, resources, and skills they need to participate fully in the digital environment.

The Universal Service Fund (USF) – which financially supports several of the Federal Communications Commission's high-cost and low-income broadband programs, at roughly $8 billion annually – has been going through a tough time. This past year saw the USF dragged before federal court in cases brought by a conservative public interest group questioning the fund's legality. The Fifth and Sixth Circuit courts initially ruled against the petitioners, but the Fifth Circuit then agreed to hear the case en banc in September and has yet to rule.