In the wake of the Affordable Connectivity Program’s (ACP) expiration in June 2024, millions of Americans face an uncertain digital future. The program provided up to $30 per month towards internet service for eligible low-income households and was a lifeline for many. As we look ahead to 2025 and beyond, the question looms: How will the United States ensure broadband remains affordable for all?
“Tell me, what faith do they have in us?” former Democratic FCC commissioner Mignon Clyburn asked at a recent industry event. “That we can implement a program that’s sustainable, that they can count on next year and the year after?” This sentiment echoes the concerns of many as policymakers and industry leaders grapple with the challenge of keeping Americans connected in a post-ACP landscape.
The end of the ACP has left a significant void in the nation’s efforts to bridge the digital divide. A Federal Communications Commission (FCC) contractor found that 25% of former ACP users had or were canceling their internet service. At the same time, the Benton Institute for Broadband & Society reported that 36% of 8.3 million households would downgrade to a cheaper or slower plan. These statistics underscore the program’s importance and the potential consequences of its discontinuation. Joe Kane, director of broadband and spectrum policy at the Information Technology and Innovation Foundation (ITIF), emphasizes the need for a new approach.
Closing the digital divide should remain a major priority for American broadband policy, but the causes of that divide have changed more quickly than our policies to address them have.”
As the dust settles from the ACP’s expiration, several potential solutions are emerging:
- State-Level Initiatives: Some states are taking matters into their own hands. Colorado and Oregon have instituted their programs to make broadband more affordable, either adding to the federal Lifeline program or establishing separate subsidies with state funds.
- Regulatory Approaches: New York’s law requiring providers to offer $15 service at 20 Mbps for low-income households has withstood legal challenges, and similar bills are before the California and Massachusetts legislatures.
- Community Networks: Where lobbyist-driven laws don’t intervene, some communities have started networks to compete with big providers or pursue public-private partnerships.
- Provider-Led Initiatives: Some internet service providers (ISPs) are creating their low-income plans. The National Digital Inclusion Alliance’s Grading Internet for Good site evaluates these services for quality and affordability.
- Federal Programs: While the ACP has ended, other federal initiatives like the Broadband Equity Access and Deployment (BEAD) Program aim to expand high-speed internet access[17]. However, these programs focus more on deployment than affordability.
Many experts argue that a new federal program must address the affordability gap. The ITIF has proposed a “New ACP” that would provide a $30 per month benefit to households at or below 135 percent of the federal poverty level or in their first three months of unemployment insurance.
EducationSuperHighway is a non-profit organization that has advocated for a permanent broadband affordability benefit. EducationSuperHighway focuses on unconnected households as they believe internet access is a right, not a privilege. They have proposed repurposing funds from the Universal Service Fund (USF) High-Cost Program to achieve this goal, and they may be moving on to something. Repurposing funds is a sound plan, especially if it makes universal internet access a reality. We need to be able to do more for those who don’t have the same access as others.
In the long run, universal access to the internet is a worthy goal. Suppose we can create a society where everyone can access the internet. In that case, we will be able to bridge the digital divide and reduce disparities in income and access to education and information. These are big challenges, and internet access can be a big help in tackling them.
Proponents of a new affordability program point to its economic benefits. A Benton Institute analysis found that the ACP created $16.2 billion in annual benefits to users, nearly twice its $8.4 billion cost. This suggests that every dollar invested in broadband affordability could yield significant returns. In the absence of a federal program, some ISPs are taking action. Verizon has announced “Verizon Forward,” offering home internet for as low as $20 per month, with new customers paying $0 for the first six months. AT&T continues to offer its “Access from AT&T” plan, providing 100 Megabit speeds for $30 per month.
The path to affordable broadband remains uncertain as we move into 2025 and beyond. What is clear, however, is that a multi-faceted approach involving federal, state, and private sector initiatives will be necessary to ensure that all Americans can participate in the digital economy. The challenge is significant, but as Joe Kane of ITIF notes, “An active, long-term program that provides smaller benefits to fewer people is better than no benefits at all.” As policymakers debate the future of broadband affordability, millions of Americans wait, hoping for a solution that will keep them connected in an increasingly digital world.
