Supporters of the FCC's expired affordable connectivity program acknowledge the Senate Commerce Committee’s impasse (see 2406180067) on the Spectrum and National Security Act (S-4207) may spur a reexamination of alternatives for addressing broadband pricing. This realization comes amid weakening odds that Congress can address ACP funding via a broader package aimed at restoring the FCC's lapsed airwaves sales authority. Lawmakers continue insisting a legislative solution is possible this year even though Senate Commerce’s cancellation of its planned Tuesday markup of S-4207 (see 2406170066) was its fourth pulling of the measure since early May. Other stakeholders are urging a shift to emphasizing nonlegislative solutions.
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.
Public recriminations escalated Monday night and Tuesday after the Senate Commerce Committee yanked a planned committee vote on the Spectrum and National Security Act (S-4207) for the fourth time (see 2406170066). The panel described Tuesday's markup as “canceled” but characterized previous situations as postponed. Senate Commerce planned a vote on a revised version of the measure (see 2406140062) Tuesday that the Commerce Department, DOD and the Joint Chiefs of Staff endorsed last week. Observers cited the finger-pointing to justify their doubts that there's a path forward for the measure or another major spectrum package during this Congress.
Revisions to the Spectrum and National Security Act (S-4207) last week (see 2406140062) have at least solidified Democrats' support for the measure ahead of a planned Tuesday Senate Commerce Committee vote, lobbyists told us. The more doubtful wild card is whether any Republican panel members publicly back the measure Tuesday despite Chair Maria Cantwell, D-Wash., making revisions that reflect their desire to protect military interests, lobbyists said. Several believed there was still a strong chance Senate Commerce would again postpone a vote on S-4207 after already yanking it from the agenda three times (see 2406110079). The panel’s meeting is set to begin at 10 a.m. in 253 Russell.
State lawmakers may be more inclined to pursue broadband affordability policies in the wake of recent FCC and court rulings as well as last month's ending of the federal affordable connectivity program (ACP), multiple telecom experts said last week. Connecticut Senate Majority Leader Bob Duff (D) told Communications Daily he hopes “these developments will lead to stronger support in 2025” for an affordable broadband proposal that failed this year. However, some anticipate ISPs will likely object, and fiscal constraints could limit states' efforts.
The House Appropriations Committee continued debating Thursday afternoon the Financial Services Subcommittee’s FY 2025 funding bill, which increases the FCC’s annual allocation to $416 million and decreases the FTC’s annual funding to $388.7 million (see 2406050067). Communications policy lobbyists said panel Democrats might attempt removing riders from the measure that bar the FCC from using funding for implementing its net neutrality and digital discrimination orders, but they hadn’t sought votes on such amendments at our deadline.
Aides to Senate Commerce Committee supporters of the Spectrum and National Security Act (S-4207) say revisions that the Commerce Department and military leaders endorsed Tuesday night will sway enough Republicans to ease the bill's path forward in the chamber. Senators told us much will depend on the language in a new substitute version of S-4207 that was still under development Wednesday afternoon. The bill would restore the FCC’s spectrum auction authority for five years, allocate $7 billion to the expired affordable connectivity program during FY 2024 and fully pay for the Secure and Trusted Communications Networks Reimbursement Program.
A Senate Commerce Committee spokesperson said Tuesday afternoon the panel remains on track to mark up the Spectrum and National Security Act (S-4207) Wednesday, but negotiations between leaders signaled the situation remained extremely fluid, lobbyists told us. Senate Commerce postponed two May markups of S-4207 amid strong opposition from top committee Republicans (see 2405010051). The measure would restore the FCC’s spectrum auction authority through Sept. 30, 2029. It would lend the commission more than $10 billion in FY 2024 funding for the expired affordable connectivity program and fully pay for the Secure and Trusted Communications Networks Reimbursement Program. The Senate Commerce meeting will begin at 10 a.m. in 253 Russell.
The House Rules Committee will decide Tuesday about allowing a floor vote on an amendment from Reps. Nikki Budzinski, D-Ill., and Mike Carey, R-Ohio, to the Servicemember Quality of Life Improvement and FY 2025 National Defense Authorization Act (HR-8070) that mirrors an earlier bipartisan Senate proposal that allocates funding for the FCC’s expired affordable connectivity program and Secure and Trusted Communications Networks Reimbursement Program. The Budzinski-Carey proposal, like the amendment Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., unsuccessfully sought to attach to the FAA reauthorization law in May (see 2405090052), allocates $6 billion in FY 2024 ACP stopgap funding and $3.08 billion for rip and replace. It also proposes major structural changes for ACP, including ending the initiative’s $100 device subsidy and altering its eligibility rules. Another amendment, led by Rep. Derek Kilmer, D-Wash., would direct that the Federal Emergency Management Agency's director “clarify and document the responsibilities and decision-making process” for the Integrated Public Alert Warning System “to deliver tsunami alerts to the Emergency Alert System.” House Rules’ meeting on HR-8070 amendments will begin at noon in H-313 in the Capitol.
ISPs and industry groups told the FCC that while competition and access remain strong in the broadband marketplace, additional regulation could harm future investment and deployment. Those views were included in feedback the FCC sought about its biannual State of Competition in the Communications Marketplace report to Congress (see 2404220050). In comments, some wireless groups urged making additional spectrum available. MVPDs and broadcasters said the FCC should recognize the increasing competition they face from streaming video and accordingly relax regulations. Comments were posted Thursday and Friday in docket 24-119.
Congressional leaders haven't reached a consensus on how to resurrect the FCC's expired affordable connectivity program. In interviews this week, lawmakers pointed to a range of options, including an expected third attempt at a Senate Commerce Committee markup next week (see [2405310070]) of the Spectrum and National Security Act (S-4207). The FCC formally shuttered ACP Friday after supporters on Capitol Hill failed numerous times at allocating stopgap funding (see 2403280001).