More than 238,000 low-income Minnesotans use ACP – for now

MinnPost reports

More than 238,000 low-income Minnesotans like Arens need the Affordable Connectivity Program (ACP) to close the digital divide. But they may soon lose that help. So may 2.5 million others across the country.

The Federal Communications Commission, the agency that runs the pandemic-era program, warned last week that the $14.2 billion Congress appropriated for the program will run out in April. The agency said it has begun to wind down the program and will stop accepting new applications and enrollments on Feb. 7.

And without additional funding from Congress, the FCC said it will be forced to shut down the program later this year.

Here are the qualifications…

To qualify for the ACP, a household income must not exceed 200% of the federal poverty level of $30,120 for an individual and $62,400 for a family of four.

There are other ways to qualify for the program, too, including enrollment in food stamps, Medicaid or a federal housing assistance program. Students who receive a Pell grant would also qualify.

Eligible households can also receive a one-time discount of up to $100 to purchase a low-cost laptop, tablet or desktop computer.

There are some efforts to extend it…

Almost immediately after the FCC issued its warning last week, bipartisan groups in the U.S. House and U.S. Senate introduced the Affordable Connectivity Program Act, legislation that would appropriate $7 billion so the program could continue.

And some resistance…

However, some congressional Republicans criticized the program as “wasteful” in a letter to FCC Chairwoman Jessica Rosenworcel last month that said a majority of  low-income families had broadband before they applied for the subsidy.

Help from Benton Institute on How the FCC Plans to End the Affordable Connectivity Program

The Benton Institute for Broadband & Society reports

The Affordable Connectivity Program (ACP) is a federal benefit that helps qualifying low-income households pay for internet service and devices. Since January 2022, the ACP has grown to help over 22 million U.S. households (roughly one in six of all Americans) access the internet. However, the ACP is running out of funding. Congress originally appropriated $14.2 billion for the ACP, but over time that amount has been spent down to the point where the ACP is on course to run out of funding this Spring. Congress may yet appropriate additional funds, but, since that is not certain, the Federal Communications Commission (FCC) must proceed as if the program will end. Therefore, on Thursday, January 11, 2024, the FCC released guidance for the wind-down of the program. The guidance aims to inform interested parties about:

  • The process for notifying enrolled ACP households about the impact of program termination on their broadband service and bills;
  • Freezing of new enrollments in the program;
  • Advertising, awareness, and outreach requirements for providers and outreach partners;
  • The timing of claims submissions; and
  • Participation during a possible partially funded month of ACP.

 

Senators introduce legislation to extend Affordable Connectivity Program

Senators introduce legislation to extend Affordable Connectivity Program

Today, U.S. Senators Peter Welch (D-Vt.), JD Vance (R-Ohio), Jacky Rosen (D-Nev.), and Kevin Cramer (R-N.D.) and U.S. Representatives Yvette D. Clarke (NY-09) and Brian Fitzpatrick (PA-01) led their colleagues in the bicameral, bipartisan introduction of the Affordable Connectivity Program Extension Act. This legislation would provide $7 billion for the Affordable Connectivity Program (ACP), which provides affordable high-speed internet options to qualifying households across the U.S. The program, which is administered by the Federal Communications Commission (FCC) is projected to be exhausted by April 2024 without additional funding.

Since its implementation, over 22.5 million households have utilized the program’s monthly discount of up to $30 for internet service, and up to $75 monthly for those living on Tribal lands. This program has been utilized by over 800,000 veterans, one million college students, 3.1 million families with a K-12 student receiving free or reduced-price lunch, and 5 million seniors across the United States.

Affordable Connectivity Program increased funding soon to be available for high cost areas

FCC recently announced the upcoming opportunity for broadband providers to apply to be eligible for more funding to serve consumers in high-cost areas. The ACP subsidy increases from $30 per month to up to $75 per month…

In the ACP Sixth Report and Order, the Federal Communications Commission (Commission), as required by the Infrastructure Investment and Jobs Act (Infrastructure Act), established a mechanism by which a participating provider in the Affordable Connectivity Program (ACP) can apply to offer an enhanced monthly discount of up-to-$75 for broadband services to ACP-enrolled households in a high[1]cost area, upon the provider’s showing of particularized economic hardship.1 Through this Public Notice, the Wireline Competition Bureau (Bureau) provides additional information on the application process and announces that ACP providers may begin submitting applications on Wednesday, January 17, 2024 seeking approval to offer the high-cost area benefit in a given area.2

As directed by the Infrastructure Act and set forth in the ACP Sixth Report and Order, providers that seek to offer the high-cost area benefit must be facilities-based providers3 operating in a high-cost area designated by the National Telecommunications and Information Administration (NTIA).4 In applying to offer the high-cost area benefit, providers must submit to the Universal Service Administrative Company (USAC) documentation demonstrating particularized economic hardship in the high-cost area(s) where they are seeking to offer the high-cost area benefit. This documentation includes an income statement, a supporting affidavit, and any applicable federal tax filings or returns demonstrating operating loss in the high-cost area. 5 The supporting affidavit must include revenue and cost allocations and a description of the methodology employed consistent with Commission rules.6 A participating provider’s application must also include certifications from a company officer with knowledge of the provider’s cost and revenues.7 A provider will also need to specify whether it has previously applied for federal financial assistance in the three fiscal years prior to the provider’s application.8 Providers will be required to submit an application form alongside the supporting affidavit, income statements, and other required documents via e-mail to USAC. USAC will provide additional information about the application process and required documentation, including training and educational materials, prior to the January 17, 2024, start date for accepting applications. Providers will be required to certify to the accuracy of any statements or documents submitted as part of the ACP high-cost area benefit application process. As required under the Sixth Report and Order, USAC will inform providers in writing about the determination on their application and will also publicly issue information on which providers are approved to offer the high-cost area benefit and the high-cost areas where they are approved to offer it.9

We remind providers that the Commission may suspend or remove a participating provider from the ACP for a variety of reasons, including violations of the rules or requirements of the ACP or any action that indicates a lack of business integrity or undermines the integrity of the program.10

EVENT Nov 28: Paul Bunyan Communications, Leech Lake and IEDC Affordable Connectivity Program Sign Up Day

If you’re in the areas, or know folks who are, please let them know…

Paul Bunyan Communications, the Leech Lake Band of Ojibwe, Itasca County, and the Itasca Economic Development Corporation (IEDC) are holding a sign-up day for the Affordable Connectivity Program on Tuesday, November 28 from 11 a.m.-5 p.m. at S. Lake Community Center on County Road 4.

This event will provide the opportunity to explore many community resources including free/reduced Internet service through the Affordable Connectivity Program, job opportunities, education, social services, and Leech Lake Tribal IDs.  For more information on the Day of Connections call 218-328-8352.

The Affordable Connectivity Program will help to lower the cost of broadband service for eligible households struggling to afford internet service and provides a discount of up to a $30 per month toward broadband service for eligible households and up to $75 per month for qualifying households on qualifying Tribal lands.

A household is eligible if one member of the household meets at least one of the criteria below:

  • Has an income that is at or below 200% of the Federal Poverty Guidelines;
  • Participates in certain assistance programs, such as SNAP, Medicaid, Federal Public Housing Assistance, SSI, WIC, or Lifeline;
  • Participates inone of several Tribal specific programs, such as Bureau of Indian Affairs General Assistance, Tribal Head Start (only households meeting the relevant income qualifying standard) Tribal TANF, or Food Distribution Program on Indian Reservations;
  • Is approved to receive benefits under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision;
  • Received a Federal Pell Grant during the current award year; or

Eligible households can enroll at the sign-up event, through a participating broadband provider, or by going to http://www.getinternet.gov to submit an online application or print a mail-in application and contacting their preferred participating broadband provider and selecting a plan.  Additional information about the Emergency Broadband Benefit is available at http://www.getinternet.gov or by calling 877-384-2575 between 9 a.m. and 9 p.m. ET any day of the week.

ACP (Affordable Connectivity Program) is getting more people online

The Benton Institute for Broadband and Society reports

There is a positive and significant correlation between broadband adoption growth and Affordable Connectivity Program (ACP) enrollment. As of December 2022, ACP was aiding one in every eight residential broadband connections in metro and urban counties in the United States, many of them new subscribers.

New analysis of the 2022 American Community Survey (ACS) and ACP enrollment data points to important findings as Members of Congress consider additional funding for ACP.

  • First, places that have experienced strong broadband adoption growth in recent years generally have higher-than-expected rates of ACP enrollment, pointing to the likelihood that ACP has had an impact on that growth.
  • Second, places where ACP enrollment growth was strong throughout the 2022 calendar year tend to have above-average broadband subscription levels in 2022 data.

These findings come from analysis of ACS 2022 data at the county level and 2022 ACP enrollment data, also at the county level. The ability to match government-collected broadband adoption data with ACP enrollment in the same geographies offers a unique opportunity to draw early lessons on ACP’s effectiveness. For the counties included in this analysis, subscriptions to broadband of any type grew by 3.5 percentage points from 2019-2021 and a more modest 0.7 points from 2021-22. By the end of 2022, 12.5 million households were enrolled in ACP in the counties analyzed in this report, or 1 out of 8 broadband subscriptions of any sort.

It would be interesting to know how much money taxpayers save when more people get online. One tiny example, once everyone gets online a government agency can stop sending paper newsletters and send via email. Think of the saving in printing and postage. Could that money be reallocated to sustain the ACP?

Broadband makes short list of items White House wants to fund for National Security

The White House is asking the US House to look at ways to find common ground and support a number of projects under the umbrella of National Security Funding…

Over the coming weeks, the Administration looks forward to continued engagement with members of both parties to reach a comprehensive, bipartisan agreement to fund the Government and invest in critical national priorities. As part of that process, the Congress has an opportunity and obligation to advance our national security by addressing critical needs that should earn bipartisan support. Today, I am writing to provide you with the President’s request for Fiscal Year (FY) 2024 emergency supplemental funding for these key national security priorities.

Broadband is part of the plan…

Finally, our Nation faces additional urgent needs for millions of hard-working Americans. The Office of Management and Budget is refining our estimates of funding required to address recent natural disasters, avoid the risk that millions of Americans lose access to affordable high-speed internet or child care, provide additional resources for the Federal Emergency Management Agency’s Nonprofit Security Grant Program, and avert a funding cliff for wildland firefighter pay. I anticipate submitting a request for supplemental funds in these areas in coming days, and I continue to urge the Congress to address critical funding needs I communicated in September, including for the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

Bill introduced in US Senate to promote Lifeline and ACP

Senator Durbin’s website reports

In conjunction with Digital Inclusion Week, U.S. Senate Majority Whip Dick Durbin (D-IL) and U.S. Representative Robin Kelly (D-IL-02) today introduced a bicameral bill that would increase access to broadband service for low-income urban and rural Americans.  ThePromoting Access to Broadband Act would help states increase awareness and enrollment in the Federal Communications Commission’s (FCC) Lifeline program and Affordable Connectivity Program (ACP), which provide a monthly subsidy to help low-income households pay for their broadband and telephone service. …

The Promoting Access to Broadband Act would:

  1. Award grants to at least five states;
  1. Direct the FCC to consider several factors in evaluating applications, including states with a higher number of covered individuals, states with plans with the potential to reach a higher percentage of eligible-but-not-enrolled households, and geographic diversity;

  2. Allow states to use the funds to inform Medicaid enrollees, Supplemental Nutrition Assistance Program (SNAP) participants, and low-income individuals of potential eligibility, provide information on how to apply for Lifeline and ACP, and partner with non-profit and community-based organizations to assist individuals applying for Lifeline and ACP; and

  3. Require the FCC to issue a report to Congress within a year of establishing the grant program evaluating the grant’s effectiveness.

Increased promotion is a great way to reach new people who might qualify for ACP, especially if they find a way to continue funding ACP. (Senator Klobuchar co-sponsored the bill.)

Affordable Connectivity Program may expire next year

AP News reports on the longevity of the Affordable Connectivity Program

One of the features that President Joe Biden cited in his plan to bring internet to every home and business in the United States by 2030 was affordability. But an important federal program established to keep broadband costs down for low-income households is set to expire next year.

The Affordable Connectivity Program has not reached everyone who is eligible. According to an Associated Press analysis of enrollment and census data, less than 40% of eligible households have utilized the program, which provides monthly subsidies of $30, and in some cases, up to $75, to help pay for internet connections. …

But the program’s future is uncertain. Its primary source of funding, a $14.2 billion allocation, is projected to run out by the middle of 2024. That could end access to affordable broadband for millions of people and hinder the Biden administration’s push to bring connectivity to the people who need it most.

EVENT Aug 31: Paul Bunyan Communications and Leech Lake Band of Ojibwe Affordable Connectivity Program Sign Up

An invitation from Paul Bunyan Communications…

Paul Bunyan Communications and the Leech Lake Band of Ojibwe are holding a sign-up day for the Affordable Connectivity Program on Thursday, August 31 from 10 a.m.-2 p.m. at Cass Lake Boys and Girls Club.

The Affordable Connectivity Program will help to lower the cost of broadband service for eligible households struggling to afford internet service and provides a discount of up to a $30 per month toward broadband service for eligible households and up to $75 per month for qualifying households on qualifying Tribal lands.

A household is eligible if one member of the household meets at least one of the criteria below:

  • Has an income that is at or below 200% of the Federal Poverty Guidelines;
  • Participates in certain assistance programs, such as SNAP, Medicaid, Federal Public Housing Assistance, SSI, WIC, or Lifeline;
  • Participates inone of several Tribal specific programs, such as Bureau of Indian Affairs General Assistance, Tribal Head Start (only households meeting the relevant income qualifying standard) Tribal TANF, or Food Distribution Program on Indian Reservations;
  • Is approved to receive benefits under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision;
  • Received a Federal Pell Grant during the current award year; or

Eligible households can enroll at the sign-up event, through a participating broadband provider, or by going to http://www.getinternet.gov to submit an online application or print a mail-in application and contacting their preferred participating broadband provider and selecting a plan.  Additional information about the Emergency Broadband Benefit is available at http://www.getinternet.gov or by calling 877-384-2575 between 9 a.m. and 9 p.m. ET any day of the week.

FCC Acts to Provide Subsidy for Consumers in Certain High-Cost Areas

The FCC reports

The Federal Communications Commission today adopted an order to provide an up-to-$75 monthly broadband benefit for subscribers living in qualifying high-cost areas through the Affordable Connectivity Program (ACP), as directed by the Infrastructure Investment and Jobs Act (Infrastructure Act).  The Infrastructure Act specified that the $75 monthly benefit would support providers that can demonstrate that the standard $30 monthly benefit would cause them to experience “particularized economic hardship” such that they would be unable to maintain part or all of their broadband network in a high-cost area.  Congress separately directed the National Telecommunications and Information Administration (NTIA), in consultation with the Commission, to identify the high-cost areas that would be eligible for the enhanced ACP high-cost area benefit.

The Report and Order is expected to incentivize providers to participate in the ACP or remain in the ACP in rural and insular areas, further narrowing the digital divide.  The high-cost area benefit supports other federal initiatives, including those in the Infrastructure Act, to spur deployment and adoption in rural areas by strengthening the business case for providers to deploy broadband in rural and insular areas.

8 Policy Recommendations to improve digital access and equity

The FCC looked at provisions made during the COVID 19 pandemic online as quickly as possible. Then they asked the Community Equity and Diversity Council (CEDC) to look at what worked and what didn’t and make recommendations moving forward…

Recommendations from Public Convening

  1. The federal government should continue the Affordable Connectivity Program (ACP).
  2. There should be greater outreach efforts to educate families about the benefits of the ACP. Those outreach efforts should include many more languages than English.
  3. Make it easier for families to enroll in the ACP.
  4. Broadband service providers can implement their own low-cost broadband service programs with quality service and comparable speeds as high-income households and provide broadband connectivity centers within communities.
  5. Non-profit organizations, and community anchor institutions (such as libraries) can develop Wi-Fi centers within local communities funded by the federal, state, local government and/or in partnership with industry.
  6. To identify and overcome the challenges to broadband adoption, affordability, and greater participation in digital literacy skills training programs, broadband service providers and federal and state governments must collaborate and leverage the trusted relationships that anchor institutions have with their local communities.
  7. To develop broadband adoption and digital literacy skills training on a national scale, the non-profit and private sectors need to develop best practices for more broader collaboration.
  8. The federal government must ensure states receive funds to develop their digital equity plans

Affordable Connectivity Program helps Democrat and Republican communities

USC Annenberg reports

Discussions about funding for social programs are too often framed along predictable partisan lines. However, the reality on the ground is frequently more complex, and the Affordable Connectivity Program (ACP) is no exception. A simple look at the data reveals that the program supports connectivity for families in both red and blue communities, and that Republicans stand to lose as much as Democrats if the program is not renewed when the funds ran out sometime in 2024.

The report goes into great detail – but that’s the quick take.

EVENT Jul 19: Benton’s ACP Enrollment Performance Tool AMA Webinar July 19

An event hosted by Benton Institute for Broadband & Society…

On July 19th at 1 PM ET/10 AM PT, please join Benton Institute for Broadband & Society Senior Fellow John Horrigan and Elena Saltzman, Director of Campaigns, Civic Nation, for an Ask Me Anything (AMA) on the Affordable Connectivity Program Enrollment Performance Tool and how to best focus ACP outreach and enrollment efforts in your community.

The ACP Enrollment Performance Tool allows you to see how ACP sign-ups are going at a zip code level, comparing the actual number of ACP enrollees to the predicted enrollment for the area. The performance metric can help broadband planners and digital equity practitioners target enrollment efforts where they are most needed. We are currently updating the tool, including more recent data and adding information on how much money has been claimed in each zip code.

The webinar will be livestreamed on Youtube and Twitter. John and Elena will discuss how to use the performance tool for your ACP work (drawing on lessons from Civic Nation’s ACP Pilot Report) and answer questions submitted prior to the event as well as during a live Q&A.

Please submit your questions here and RSVP for the webinar here.

Affordable Connectivity Program is going well in rural areas

According to Benton Institute for Broadband & Society, the Affordable Connectivity Program (ACP) is going surprisingly well. Turns out 15 percent of rural households have enrolled in ACP; compared to 14 percent in metro or urban areas. There are some push and pull reasons. Percentage-wise, more rural households qualify for ACP. But some of those households live in areas with no service available – so no reason to apply for ACP. Also people in areas with less population density have not enrolled at the same rates and lack of access to support to know about or complete applications may be a factor. (It’s easy to ask the library down the road for help – but more difficult if that library is 30 miles away.)

They did find that subscription vulnerability played a role in getting folks to sign up…

Behind rural households’ strong embrace of ACP is subscription vulnerability. Many rural households are “subscription vulnerable,” in that they report difficulty in affording their monthly internet bill and may be subject to service interruptions if their household encounters a financial setback. Research shows that as many as 40% of all lower-income households fit the “subscription vulnerable” category – but fully 44% of rural homes are subscription vulnerable.

This suggests that, in rural America, ACP is helping households on the economic margin maintain service and more easily cope with the affordability burden a broadband bill imposes on cash-strapped homes. Although analysis suggests that as many as 25% of ACP households are new broadband subscribers, it is difficult to estimate that figure for rural households. It seems inevitable, though, that this figure is lower for rural households because of less network availability. For rural America, ACP today is more likely to mean easing cost burdens on existing service than adding more rural households to the ranks of broadband subscribers.

Going forward, strong rural ACP enrollment rates suggest that when new networks come online, there will be a ready customer base of lower-income subscribers – unless, of course, ACP sunsets. At present, ACP provides much-needed broadband cost relief for parts of the country where more households are “subscription vulnerable.” And it creates an opportunity for effective use of broadband network subsidies, as an ACP-seeded customer base can mitigate the risk of “networks to nowhere” in rural America.

It seems like building a customer-base of ACP customers not only helps lift those customers but also provides some financial stability for new broadband entrants to unserved areas.