In 2023, 16 million households could afford internet thanks to the Affordable Connectivity Program (ACP) subsidies. In 2024, those subsidies are expected to run out. With an election looming, some observers fear the subject of renewal could get political, and the ACP could be “completely obliterated.”
As we implement the historic federal investment of $65 billion in broadband spending and move past build-outs to affordability in the coming years, observers will likely repeat the same fears when those funds come up for renewal. Fortunately, for the ACP and the Broadband Equity, Access, and Deployment (BEAD) funding to come, universal broadband access is an ideal that transcends politics.
Universal broadband may take some time to build out and deploy and more time to educate people on the subsidies and opportunities available to them, but during that time, it’s in everyone’s best interest to keep broadband universally affordable.
Subsidies May Not Last
The potential fallout from failing to maintain subsidies for affordable high-speed broadband is already upon us. When COVID hit, internet usage skyrocketed, unlikely to return to pre-pandemic levels. With technology rapidly changing the face of our future economy, broadband access went from a luxury to a household need. In response, the government launched the Emergency Broadband Benefit (EBB) in Feb 2021, and about nine million households enrolled for the $50 subsidy. The ACP replaced the EBB in December of that year, dropping the discount to $30 but opening up for more people to qualify.
With only one-third of eligible households signed up, broadband service providers have already claimed over $6.1 billion of the subsidy funds in reimbursements. Experts predict the remaining funds will be gone by next year. While the BEAD program will soon infuse states with more potential subsidy money, new build-outs connecting new customers will introduce even more households in need of affordability. If everything goes as planned, states should start releasing BEAD subsidy funds in 2024, just as ACP funds are expected to run out.
With state mapping now finalized, the National Telecommunications and Information Administration (NTIA) will first need to allocate BEAD funds based on state needs. Then, states must develop and submit initial and final proposals to release those allocated funds. Once received, states can begin implementing the subsidies to connect as many eligible people as possible, informing eligible households of new discounts and enrolling them. Unless Congress renews the ACP subsidies, delays in this process could leave 16 million currently connected households suddenly unable to afford internet.
Sustaining Universal Broadband Transcends Politics
Unlike entitlement programs politicians frequently endorse or rail against to gain popular support, maintaining universal broadband is a universal economic need. Pulling the plug on over 16 million American households could cost them their jobs, destroy small businesses, and devastate families and entire communities. The longer they stay cut off from the internet as technology advances, the harder it becomes to catch them back up to digital competency, weakening our labor pool, destabilizing local stability, and setting us back as a country. Universal broadband is more than a state or community issue—it’s a national imperative.
Americans agree. In a January 2023 poll of 1,000 voters by the bipartisan policy research firm, the Digital Progress Institute, 64% of Republicans, 95% of Democrats, and 70% of Independents supported the continuation of the ACP. While a Democratic president was behind the $1 trillion infrastructure bill that included $65 billion in broadband spending, nineteen Republican senators voted in favor of the legislation. In 2021, Republicans introduced the Eliminating Barriers to Rural Internet Development Grant Eligibility (E-BRIDGE) Act to remove hurdles for federally-funded broadband projects and the Broadband For Rural America Act to fund vital infrastructure projects in some of the least-connected regions. Even at a time of high political partisanship, everyone recognizes the need for universal broadband.
Overcoming Limits To Implement True Universal Broadband
Behind the need to keep subsidies funded is the need to get those subsidies into eligible citizens’ hands. If only one-third of qualifying homes took advantage of BEAD subsidies as with ACP subsidies, we would miss our goal of universal access by a long shot. Some people in low-income, rural areas may resist an overly complicated or invasive sign-up process. Many households will simply be unaware of their eligibility. For universal broadband to succeed, we need to ensure everyone who needs broadband subsidies gets them and has enough digital competency to use them.
Some broadband service providers are already investing in efforts to get more people signed up for broadband subsidies. Cox Communication spent $25 million on ACP awareness campaigns, partnering with local organizations to help educate customers on their eligibility. Comcast partnered with thousands of community organizations to bring awareness to broadband options and expand digital literacy in underserved areas.
Cities like Wilmington, North Carolina, are also getting involved. They recently announced a $2.5 million investment to provide free digital skills training and job matching to qualifying individuals. We need more leaders like these to drive awareness and digital literacy initiatives to get everyone connected and take advantage of broadband opportunities while also bringing in more paying customers for service providers and municipal utilities.
People can be divided on major social issues, especially those hotly debated along party lines. But for universal broadband, the only role politics needs to play is for politicians to take action and make it happen. Staying connected today is less about luxuries like social media and video games and more about better education, healthcare, and economic opportunities; a better quality of life. If the future of the modern global economy is online, we need every American citizen capable of participating in it.