House Republicans pushed back during a Friday Communications Subcommittee field hearing in Bakersfield, California, against calls for Congress to allocate stopgap funding to the FCC’s ailing affordable connectivity program and the rollout of NTIA’s $42.5 billion broadband equity, access and deployment program. ACP supporters believe they made progress last week toward securing a path that keeps the program funded in FY 2024 despite proposals attaching funding to the FAA Reauthorization Act (HR-3935) failing in the Senate (see 2405100046).
Affordable Connectivity Program (ACP)
What is the Affordable Connectivity Program (ACP)?
The Affordable Connectivity Program was a recently expired subsidy for low-income households to lower the cost of purchasing broadband internet and connected devices. The program was signed into law as part of the 2021 Infrastructure Investment and Jobs Act and administered by the FCC up until June 1, 2024, due to expiration of the ACP’s funding.
Will the ACP Return?
Congress continues to debate restoring ACP funding, with immediate next steps likely to come from the Senate Commerce Committee or Congressional discussions on revising the Universal Service Fund.
Backers of stopgap funding for the FCC’s ailing affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program believe they made progress last week toward their goal of firming up the initiatives even as a bid attaching funds to the FAA reauthorization legislation appeared all but dead. Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., emerged from the chamber Thursday night touting commitments from leaders to move forward on allocating the proposed money even as the body voted 88-4 to pass the FAA Reauthorization Act (HR-3935) without funding language he and others sought (see 2405070083).
A bipartisan bid aimed at attaching $6 billion in stopgap funding for the FCC’s affordable connectivity program and $3.08 billion for the Secure and Trusted Communications Networks Reimbursement Program to the FAA reauthorization package appeared likely to fail Thursday amid opposition from Senate leaders (see 2405080047). Amendment co-sponsor Sen. J.D. Vance, R-Ohio, conceded in an interview Thursday he and other backers appear to lack the necessary votes to hold up consideration of the FAA package. Senate Commerce Committee Chair Maria Cantwell, D-Wash., and amendment co-sponsor Sen. Peter Welch, D-Vt., separately confirmed to us that chamber leaders still resisted allowing a floor vote on the proposal because they view it as nongermane to the FAA package.
A new bid by Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., and other senators to attach stopgap funding for the FCC’s affordable connectivity program and additional money for the Secure and Trusted Communications Networks Reimbursement Program to the FAA Reauthorization Act (see 2405070083) faces resistance from chamber leaders. Senate Majority Leader Chuck Schumer, D-N.Y., and other leaders are skeptical about including nongermane language in the FAA package. A previous proposal to attach ACP money drew opposition during a Tuesday night “hotline” that Senate leaders ran to gauge lawmakers’ support for amendments in the package.
Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., said Thursday night he has secured commitments from chamber leaders to move forward on allocating $6 billion in stopgap funding for the FCC’s affordable connectivity program and $3.08 billion for the Secure and Trusted Communications Networks Reimbursement Program amid last-minute talks to pass an FAA reauthorization package. The Senate was still voting Thursday night on passing an amended version of the FAA Reauthorization Act (HR-3935) that doesn’t include the ACP/rip-and-replace language Lujan and others sought, as expected.
Senate Communications Subcommittee Chairman Ben Ray Lujan (D-N.M.), Sen. J.D. Vance (R-Ohio) and four other senators joined forces Tuesday night to file an amendment to the FAA reauthorization bill that would allocate $6 billion to the FCC’s affordable connectivity program for FY 2024 and $3.08 billion to fully fund the Secure and Trusted Communications Networks Reimbursement Program. Senate leaders were still in talks Tuesday night on what amendments to the FAA package they would allow floor votes on in hopes of securing a time agreement to speed consideration of the measure.
The National Lifeline Association raised concerns with FCC Wireline Bureau staff about the potential funding gap in the affordable connectivity program. Many providers will continue reduced or no-cost service offerings "for some period of time in hopes of an ACP funding solution," NaLa said in a letter Friday in docket 21-450. It asked the commission to forego requiring that ACP providers de-enroll subscribers from the national Lifeline accountability database as of June 1. The process of re-enrolling ACP subscribers "would be a tremendous burden on ACP providers and consumers," NaLa said.
Navajo Nation President Buu Nygren urged the FCC that it continue providing Lifeline funding for tribal households should the affordable connectivity program end. In a letter Friday in docket 21-450, Nygren said the Navajo Nation backed a Smith Bagley petition seeking an increase in tribal Lifeline support (see 2404080030). The temporary increase in support would "keep broadband affordable for tribal households, many of which are located in remote areas and are among the most in need of ACP and Lifeline support," Nygren said.
Heavy competition the cable industry faces from fiber and fixed wireless access (FWA) is moving downscale, with multiple cable operators telling Wall Street in recent days that there's more pressure at the lower end of the market. Some anticipate greater pressure on their internet subscriber numbers due to the looming end of the affordable connectivity program. Moreover, Charter Communications said it's already seeing effects from February's freeze on new ACP enrollments (see 2402010075).
Top Affordable Connectivity Program Extension Act (HR-6929/S-3565) backers Sens. J.D. Vance, R-Ohio, and Peter Welch, D-Vt., said Thursday they plan to press forward with an amendment to the bipartisan 2024 FAA Reauthorization Act that would appropriate $7 billion in stopgap funding for the ailing FCC broadband program (see 2405010055) despite opposition from Senate leaders. ACP stopgap funding advocates used a Senate Communications Subcommittee hearing that day to implore that Congress act while critics raised objections about what they said was a lack of clear information about the program's efficacy.