The Affordable Connectivity Program’s (ACP) Funding Crisis

Nearly 20.4 million U.S. households receive financial help for internet connectivity under the Affordable Connectivity Program (ACP) that provides reduced internet fees for qualifying households. The average ACP subscriber pays about $40 for the internet. Although $14.2 billion was allocated in 2023 for the ACP to be set up it is unclear how long that initial amount was intended to last and by now most of it has been spent with participating broadband ISPs. The fund will run out of money by April 2024 and while there’s little doubt the ACP will be refunded it’s unclear if legislators know exactly how much should be allocated with approximately 52 million households being eligible according to the Pew Trust.

This issue was discussed during a House Energy & Commerce FCC Oversight Hearing. President Biden has requested $6 billion from Congress to ensure the program's continuation but that’s less than half the $14.2 billion set aside for ACP in 2023. Representative Yvette Clarke (D-NY) announced that she will introduce new legislation to address the funding gap before the 2023 working session ends. Clarke is the Vice Chair of the Energy and Commerce Committee and the Subcommittee on Communications and Technology. She also serves on the House Smart Cities Caucus. The House Energy and Commerce Committee chair is Republican Cathy McMorris Rogers.

The FCC administers the ACP under Commission Chairwoman Jessica Rosenworcel. There are several related programs that will impact funding decisions. These include rural broadband programs, the Universal Service Fund, and various Broadband Equity, Access and Deployment projects.

During the hearing, other representatives, including Marc Veasey and Debbie Dingell, also expressed concerns about the future of the ACP. Representative Tony Cárdenas emphasized the program's significant impact on his constituents.

As concerns about the ACP's future mount, there are suggestions to eliminate ineffective or redundant rural broadband programs and to integrate the ACP into the Universal Service Fund framework. The fate of the program not only affects consumers but also influences where broadband operators decide to expand their services.