The ACP Is Dead: Long Live the ACP

As of June 1, the Affordable Connectivity Program (ACP) is officially exhausted. This means that the 23 million households that rely on it can no longer receive a $30 per month discount on fixed or mobile broadband service. Despite strong bipartisan support, Congress has yet to advance legislation to provide either a short- or long-term extension. R Street has advocated for this important program and stressed its superiority to other broadband programs. So, where do we go from here? How can policymakers address broadband affordability in a market-friendly way and ensure that this multibillion-dollar investment in broadband infrastructure successfully bridges the digital divide? 

Without the ACP, customers’ main option is the antiquated Lifeline program, which offers $9.25 per month toward broadband service. Though it has existed for decades, Lifeline is significantly smaller and far more limited in scope than the ACP—its subscribers number just 7 million versus the ACP’s 23 million. The program also places significant burdens on participating providers and offers vastly inferior service. Unfortunately, without the ACP, Lifeline is the primary option left for customers who depend on affordability programs. 

States are also considering how to fill the void left by the ACP. The Broadband Equity, Access, and Deployment (BEAD) program provides states with money for broadband deployment and “digital equity,” which could include affordability programs. The problem with this is that BEAD primarily focuses on broadband deployment, leaving only a nominal amount to address affordability. It also suffers the same issue as the ACP—once funds are exhausted, these programs will end. 

Another concern with states enacting their own programs is the resulting patchwork of burdens and requirements, which could deter providers from opting in to state programs. One national unified broadband affordability program is the best course of action to keep Americans online. 

Providers say they can mitigate damage caused by failure to renew the ACP by offering broadband service at $30 or less to ensure families remain connected. But this does not help customers who are unable to afford the cost of broadband services entirely. 

Congress alone can remedy this problem with a comprehensive solution to broadband affordability. Thankfully, they have already done the work to create a free-market, light-touch program that gives customers flexibility to choose broadband services that meet their needs. Both Republicans and Democrats have introduced proposals to provide a short-term extension for the ACP. These proposed bills include meaningful reforms that would ensure the program’s longevity, target those who depend on the ACP to remain connected, and ensure long-term sustainability. Congress is also working toward reforming the Universal Service Fund (USF), which could sustain the ACP in perpetuity. 

While the best time to find a long-term solution for the ACP was months ago, the second-best time is now. Congress must come together and bring votes to the floor to ensure this important program can continue in a revenue-neutral way and give themselves a runway for meaningful USF reform to provide a long-term solution to broadband affordability.