Affordable Connectivity Program: Congress Fights to Refuel Low-Cost Broadband Program Amid Looming Expiration

By Madz Dizon

May 02, 2024 10:57 PM EDT

Affordable Connectivity Program: Congress Fights to Refuel Low-Cost Broadband Program Amid Looming Expiration — Ethernet cables are seen running from the back of a wireless router in Washington, DC on March 21, 2019.
(Photo : MANDEL NGAN/AFP via Getty Images)

The Affordable Connectivity Program provides low-income or eligible households with inexpensive or free internet.

However, the program will expire unless Congress continues it. According to the FCC, the initiative is being discontinued owing to a lack of funds.

Congress Proposes Bills to the Save Affordable Connectivity Program

According to the Federal Communications Commission, Congress allocated $14.2 billion for the program under the Bipartisan Infrastructure Law, but a lack of further money is causing the program's benefits to expire.

As the remaining funding for the government's Affordable Connectivity Program (ACP) runs dry this month, two new bills have been introduced to replenish the program.

Sen. Maria Cantwell (D-WA) introduced the Spectrum and National Security Act of 2024 on Friday. The bill aims to increase the availability of wireless spectrum for broadband and other purposes, prioritizing this goal, according tp PCMag.

Additionally, the bill would reinstate the FCC's power to conduct spectrum auctions, a responsibility that Congress neglected to renew last March, much to the confusion of the industry.

Furthermore, a significant portion of the revenue, amounting to $7 billion, would be allocated towards the restoration of ACP funding.

Lack of ACP Funding

An additional allocation of $3.08 billion has been proposed to replenish funds for reimbursing wireless carriers for the removal and replacement of network equipment from Chinese vendors Huawei and ZTE.

According to carrier estimates, the total bill is expected to reach $5.6 billion. Significant portions of the upcoming spectrum-auction revenue will be allocated to various initiatives.

This includes $5 billion for the expansion of research funding as authorized by the CHIPS And Science Act of 2022. Additionally, $2 billion will be dedicated to Next Generation 911 and the support of designated technology hubs.

April was the final month when ACP households received the full discount, although they may receive a half discount in May. After May, ACP benefits will no longer be provided, Rochester Democrat and Chronicle reported.

According to the FCC, over 23 million eligible families have joined the program and are receiving the monthly discount, with over 1.3 million New York homes participating as of May 2023.