Upcoming policy issue

The Affordable Connectivity Program is about to run out—and Congress is watching it happen. When the ACP was created in 2021 as part of the bipartisan Infrastructure Investment and Jobs Act, the $14.2 billion Congress allocated was expected to last five years. But demand for the benefit was so high that in January the Federal Communications Commission announced the program would be winding down at the end of April, after just three years.

Congress is currently deliberating changes to the E-rate program, and one proposal has raised eyebrows: requiring schools to ban social media access over their networks as a condition for receiving E-rate funding. While the intention—to protect children from social media risks—is commendable, we have reservations about using the E-rate program as a lever to address this issue.

Some 23 million households receive broadband subsidies through the Affordable Connectivity Program, which is more than the number on food stamps. Households qualify if they earn 200% or less than the poverty line or participate in other welfare programs such as Medicaid. This includes relatively affluent households with public-school students in localities like New York City that provide universal free school meals. Broadband providers have said in recent earnings calls that they don’t expect to lose many subscribers once the program ends.

Electric cooperatives serve 92% of the nation’s persistent poverty counties and are deploying broadband networks in many hard-to-reach parts of the country. The National Rural Electric Cooperative Association conducted a survey in the summer of 2023 that showed strong participation in and support for the Federal Communications Commission's Affordable Connectivity Program by member co-ops.

The US Congress faces an imminent decision about the future of the Affordable Connectivity Program (ACP) and the connectivity it delivers to 23 million households.

Federal Communications Commission Chairwoman Jessica Rosenworcel made a final plea to Congress, asking for money to continue a broadband-affordability program that gave out its last round of $30 discounts to people with low incomes in April. The Affordable Connectivity Program (ACP) has lowered monthly Internet bills for people who qualify for benefits, but Congress allowed funding to run out. People may receive up to $14 in May if their ISP opted into offering a partial discount during the program's final month.

Senate Agriculture Committee Chairwoman Debbie Stabenow (D-MI) unveiled the Rural Prosperity and Food Security Act, which contains more than 100 bipartisan bills and puts the 2024 Farm Bill back on track to being signed into law by the end of 2024. The Rural Prosperity and Food Security Act reflects more than two years of bipartisan work on the Senate Agriculture Committee and incorporates more than 100 bipartisan bills and the work of Senators on and off the Committee.

At least two senators are demanding that a program subsidizing high-speed internet for lower-income families be extended as part of the airline safety bill making its way through the Senate. Sen J.D.

On May 1, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel wrote to Congressional leaders with a final update on the Affordable Connectivity Program (ACP). April was the last month of full funding for the program, which will fully exhaust during May without additional funding from Congress. "If additional funding is not promptly appropriated, the one in six households nationwide that rely on this program will face rising bills and increasing disconnection.

Slowing growth in the market for telecommunications services appears to be putting additional pressure on network operators in the US. Mergers and acquisitions are on the rise. Layoffs appear to be accelerating.