The Federal Communications Commission said it will run out of money to fund the Affordable Connectivity Program (ACP), the largest such broadband subisdy in U.S. history, by April of this year unless Congress acts. The program has provided billions of dollars in subsidies that go to internet-service providers for providing service to rural and other communities lacking sufficient high-speed broadband.
The commission Thursday (January 11) issued an order detailing how that broadband subsidy program would be wound down, a process that has begun given that Congress has so far failed to extend the program's funding.
FCC chair Jessica Rosenworcel, who has urged continued funding, wrote to Congress on January 8, saying more money was needed so the program “can continue to support the households that rely on it and reach others that may be on the wrong side of the digital divide.”
Currently, there is a bipartisan bill in Congress, the Affordable Connectivity Program Extension Act, that would extend the funding and save the program.
Also Read: FCC Approves Rules for ACP Broadband Subsidy
The $14.2 billion ACP program, part of the Biden administration's effort to close the digital divide by decade’s end, provides subsidies of up to $30 per month toward broadband service (up to $75 for tribal communities) and up to $100 toward a broadband access device, excluding smartphones.
That is money that goes to the ISPs providing that service, so it is a program broadband operators are solidly behind.
Rosenworcel has pointed out that if the funding runs dry, “millions of households” will lose the benefit and some 1,700 internet service providers will be affected.
Not surprisingly, ISPs were speaking out in support of the new funding.
“[We] urge Congress to swiftly approve the Affordable Connectivity Program Extension Act of 2024,” NCTA–The Internet & Television Association said. “With the internet such an integral part of our daily lives, ensuring the ACP has adequate funding is a critical national priority.”
Jonathan Spalter, president of telco trade group USTelecom, said: “The ACP helps nearly 23 million low-income American households access affordable, reliable broadband. [D]espite the program’s immense success, its funding is expected to run out in a matter of months. The ACP Extension Act of 2024 is a critical and common-sense step towards keeping these millions of families online and fulfilling our nation’s bipartisan commitment to bridging the digital divide once and for all.”
The Communications Workers of America, the union representing workers for whom the ACP funding means more work, was also speaking out. “We urge Congressional leaders to support this funding request and to work with us to ensure that internet service remains affordable for everyone,” the CWA said in a statement.
