May 3, 2024
White House Calls on Congress to Extend ACP Funding
On May 1, the White House released a fact sheet urging Congress to extend funding for ACP and calling on ISPs to ensure low-income and vulnerable households continue to stay connected even if ACP funding expires. The White House noted that “[w]ithout Congressional action to extend funding for the program, millions of Americans will see their internet bills go up or lose internet access at the end of this month.”
With ACP Winding Down, Cable Providers Are Committed to Keeping Customers Connected
On May 2, NCTA published a web article highlighting cable broadband providers’ commitment to keeping customers connected and closing the digital divide. “To assist ACP households in preparing for the program’s conclusion, internet providers have communicated to customers about the program’s end and its impact on internet bills and services. These notices have also included information on alternative internet options and resources for transitioning to post-ACP arrangements, including:
- Comcast’s Internet Essentials – a $9.95/month service for those who receive the National School Lunch Program (NSLP), housing assistance, Medicaid, Supplemental Nutrition Assistance Program (SNAP), or other select government programs.
- Comcast’s Lift Zones – whether you are a Comcast customer or not, you can access 1,250 WiFi-connected Lift Zones nationwide that provide free internet access in neighborhood locations.
- Cox’s Connect2Compete Internet Plan – a $9.95/month service for families with a child in grades K-12 in the home who participate in the NSLP, SNAP, or other select federal programs.
- Spectrum’s Internet Assist – an affordable internet option for low-income households that benefit from NSLP, Community Eligibility Provision (CEP) of the NSLP, or Supplemental Security Income (for applicants age 65+ only).”
Senate Holds Hearing on Broadband Affordability
On May 2, the Senate Commerce Communications Subcommittee held a hearing entitled “The Future of Broadband Affordability.” Witnesses included Jennifer Case Nevarez, Community Learning Network, in addition to being a member of the Broadband and Digital Equity Support Team for New Mexico and the Office of Broadband Access and Expansion; Kathryn de Wit, The Pew Charitable Trusts; Blair Levin, New Street Research; and Dr. Paul Winfree, Economic Policy Innovation Center.
During opening statements, Subcommittee Chairman Ben Ray Luján highlighted the crucial role of ACP in connecting underserved populations to vital services such as healthcare and education. With over 23 million households relying on the program, Luján emphasized the significant social and economic benefits, citing a study which found that every dollar that is put into ACP returns nearly $2 in impact for the recipient of the benefit. He expressed urgency in securing further funding to prevent the program’s expiration, which would reduce benefits and potentially end the program altogether.
Full Committee Ranking Member Ted Cruz (R-TX) argued that increased regulations under the current administration are stifling innovation and increasing internet costs. He criticized ACP for inefficiency and its inflationary impact on internet prices, suggesting that the program has not effectively targeted those most in need and that resources might be better allocated towards enhancing competition and reducing regulatory barriers.
Subcommittee Ranking Member John Thune (R-SD) also expressed concerns about ACP’s efficiency, noting that a large proportion of the subsidies may not be reaching those truly in need. He advocated for a more targeted approach to support connectivity among low-income consumers and called for a reevaluation of federal strategies to close the digital divide.
During testimony, Nevarez spoke in support of extending ACP before it lapses, emphasizing the impact it has on military families and tribal communities. She also noted that the investment of resources involved in standing up ACP cannot be overlooked.
De Wit stressed the importance of a two-part approach to universal broadband requiring both supply solutions and demand incentives that support the building of infrastructure and lower cost services. She cautioned that a lapse of ACP will impact ISPs participation in the BEAD Program due to the uncertainty of a stable customer base. She urged Congress to extend ACP funding to avoid disruption but agreed they need better data and transparency around enrollment to understand impacts of any changes to the program on the households.
Levin also said that ACP needs to be extended. He emphasized that rural areas need to be connected now more than ever due to the rise of telehealth options and ongoing rural hospital closures. He highlighted how getting people online also benefits the government as it correlates with increased job placements and education.
Dr. Winfree cited his economic analysis which suggests that subsidies like ACP can inadvertently lead to higher overall prices for broadband services. He argued that the end of ACP would result in greater competition of price and quality among ISPs, resulting in lower market prices.
During Q&A, there was bipartisan agreement that ACP should be extended with Republican Senators urging further guardrails and transparency for the program. Sens. J.D. Vance (R-OH) and Amy Klobuchar (D-MN) asked about the net benefit of ACP and how it encourages investment in rural broadband infrastructure. Levin posited that the entire economy would suffer if ACP is allowed to expire and cited a recent study which found that for every dollar spent on ACP, the nation’s GDP increases by $3.89—nearly twice the multiplier of the far larger BEAD Program. De Wit noted that unserved households are the most expensive and difficult to serve and that without ACP, BEAD connections will be even more expensive. She added that rural providers may not be able to shoulder the cost of the operations and the capital deployment without the subsidy.
Sen. Cruz asked Winfree how his Spectrum Pipeline Act (S. 3909) would compare to ACP in promoting long-term broadband affordability to which Winfree noted that spectrum auctions would increase competition and bring more players into the market, ultimately reducing prices. He argued that ACP has a one-size-fits-all approach that is not a strong solution for rural areas. Winfree suggested the following changes to ACP and USF: 1) that Congress recapture ACP funds for low-income populations, 2) that Congress look at ways to take regional differences into account for rural vs. urban areas, and 3) explore requiring social security numbers to receive broadband benefits.
Sens. Gary Peters (D-MI) and Shelley Moore Capito (R-WV) argued that the lapse of ACP would be detrimental to the success of BEAD since BEAD participants rely on the guaranteed customers provided by ACP to determine where to apply for funding. Sen. Capito said she believes there is a need to narrow the eligibility requirements for ACP to ensure the program reaches those who are in the most need. Winfree posited that ACP benefits urban areas more than rural ones. He argued that like the Affordable Care Act, tax credits for ACP are being provided to people who do not need them.
Sen. John Hickenlooper (D-CO) asked about expanding the current USF contribution base and what the FCC can do currently without additional congressional action. Levin noted that the base could be expanded to broadband providers but not to big tech operations. He advocated for a short-term extension of ACP to ensure people stay connected. He said fundamentally, this is a congressional decision and called on reforms to the USF program.
The discussions underscored a bipartisan understanding of the importance of broadband access, though opinions varied on methods and regulatory approaches. The urgency to act to preserve ACP and other related programs was a recurrent theme, highlighting the significant reliance of many Americans on these services for basic healthcare, education, and economic activities. Senators also discussed the need to restore the FCC’s spectrum auction authority.
New Dems Lead Letters Advocating for FY2025 Funding for Rural Development
On May 1, New Democrat Coalition members led a total of 63 New Dem signatories on four separate letters to the House Appropriations Committee, including one that outlines the Coalition’s priorities related to development for the upcoming FY 2025 appropriations process.
In its rural development letter, Coalition members wrote that federal funds would “help rural Americans afford their energy and broadband utility costs and aids in providing energy and information connections to communities where providers would otherwise not affordably offer services.” Furthermore, they requested that the Appropriations Committee provide $112.4 million for the ReConnect program and $60 million for Distance Learning and Telemedicine grants.
Sens. Schatz and Cruz Introduce Bill to Keep Kids Off Social Media
On May 1, Sen. Brian Schatz (D-HI) and Senate Commerce Ranking Member Ted Cruz led a bipartisan coalition of their colleagues in introducing The Kids Off Social Media Act. The legislation updates a bill Sen. Schatz introduced last spring and would set a minimum age of 13 to use social media platforms and prevent social media companies from feeding algorithmically-boosted content to users under the age of 17. This legislation also includes Sen. Cruz’s previously introduced Eyes on the Board Act, a bipartisan bill to block social media access at schools. While existing law requires schools collecting federal subsidies to certify that a firewall blocks access to obscenity, pornography, and other harmful sexual content, there is currently no similar restriction blocking access on school networks to distracting and addictive social media apps and websites.
In a press release, Sen. Cruz said he is “grateful to Sen. Schatz for his dedication to finding solutions to the significant challenges facing millions of parents of young children and am hopeful that our bipartisan legislation, along with other proposals like KOSA and COPPA 2.0, will greatly reduce the physical and emotional dangers threatening many of America’s youth.”
Sen. Schatz added that “[t]he growing evidence is clear: social media is making kids more depressed, more anxious, and more suicidal. This is an urgent health crisis, and Congress must act.”
Rep. Bilirakis Op-Ed Calls for Light-Touch Regulation of the Internet
On April 25 (the same day the FCC reinstated net neutrality rules), the Tampa Bay Times published an Op-Ed by Rep. Gus Bilirakis (R-FL) arguing that “the internet should be shaped by the principles of the free market, not burdened by heavy-handed regulations like those proposed under the guise of net neutrality… Instead of pursuing heavy-handed regulations, we should focus on fostering a competitive marketplace that encourages investment and innovation. Policies that support the expansion of broadband access, such as the removal of bureaucratic barriers to deployment, can help connect more Americans without imposing unnecessary burdens on ISPs.”
Upcoming Hearings
- The Senate Commerce Committee Executive Session, which was initially scheduled for May 1, has been postponed. We will let you know when the Committee has rescheduled the markup session during which they plan to consider a few telecommunications bills, including the discussion draft of the Spectrum and National Security Act, the Rural Broadband Protection Act of 2023 (S. 275) and the Protecting Kids on Social Media Act (S. 1291).
- The House Energy & Commerce Communications Subcommittee postponed a hearing initially scheduled for May 7 to consider the budget of the FCC. All five commissioners were expected to testify. We will let you know when the hearing is rescheduled.
- On Wednesday, May 8, the House Appropriations Commerce, Justice, Science, and Related Agencies Subcommittee will hold a hearing to discuss President Biden’s FY2025 Budget Request for the U.S. Department of Commerce. Commerce Secretary Gina Raimondo is expected to testify. Please follow the Committee’s website for updates.
- Also on Wednesday, May 8, the Senate Commerce Consumer Protection Subcommittee will hold a hearing entitled “Strengthening Data Security to Protect Consumers.” Witnesses will include James Lee, Identity Theft Resource Center; Sam Kaplan, Palo Alto Networks; and Prem Trivedi, New America’s Open Technology Institute. Please follow the Committee’s website for updates.
- On Wednesday, May 15, the House Energy & Commerce Communications Subcommittee plans to hold a hearing to consider the budget of NTIA (with Alan Davidson testifying). Please follow the Committee’s website for updates.
- Finally, on Thursday, May 16, the House Appropriations Financial Services and General Government Subcommittee plans to hold a hearing to consider President Biden’s FY2025 Budget Request for the FCC. FCC Chair Jessica Rosenworcel and Commissioner Brendan Carr are expected to testify. Please follow the Committee’s website for updates.
White House Calls on Congress to Extend ACP Funding
On May 1, the White House released a fact sheet urging Congress to extend funding for ACP and calling on ISPs to ensure low-income and vulnerable households continue to stay connected even if ACP funding expires. The White House noted that “[w]ithout Congressional action to extend funding for the program, millions of Americans will see their internet bills go up or lose internet access at the end of this month.”
With ACP Winding Down, Cable Providers Are Committed to Keeping Customers Connected
On May 2, NCTA published a web article highlighting cable broadband providers’ commitment to keeping customers connected and closing the digital divide. “To assist ACP households in preparing for the program’s conclusion, internet providers have communicated to customers about the program’s end and its impact on internet bills and services. These notices have also included information on alternative internet options and resources for transitioning to post-ACP arrangements, including:
- Comcast’s Internet Essentials – a $9.95/month service for those who receive the National School Lunch Program (NSLP), housing assistance, Medicaid, Supplemental Nutrition Assistance Program (SNAP), or other select government programs.
- Comcast’s Lift Zones – whether you are a Comcast customer or not, you can access 1,250 WiFi-connected Lift Zones nationwide that provide free internet access in neighborhood locations.
- Cox’s Connect2Compete Internet Plan – a $9.95/month service for families with a child in grades K-12 in the home who participate in the NSLP, SNAP, or other select federal programs.
- Spectrum’s Internet Assist – an affordable internet option for low-income households that benefit from NSLP, Community Eligibility Provision (CEP) of the NSLP, or Supplemental Security Income (for applicants age 65+ only).”
Senate Holds Hearing on Broadband Affordability
On May 2, the Senate Commerce Communications Subcommittee held a hearing entitled “The Future of Broadband Affordability.” Witnesses included Jennifer Case Nevarez, Community Learning Network, in addition to being a member of the Broadband and Digital Equity Support Team for New Mexico and the Office of Broadband Access and Expansion; Kathryn de Wit, The Pew Charitable Trusts; Blair Levin, New Street Research; and Dr. Paul Winfree, Economic Policy Innovation Center.
During opening statements, Subcommittee Chairman Ben Ray Luján highlighted the crucial role of ACP in connecting underserved populations to vital services such as healthcare and education. With over 23 million households relying on the program, Luján emphasized the significant social and economic benefits, citing a study which found that every dollar that is put into ACP returns nearly $2 in impact for the recipient of the benefit. He expressed urgency in securing further funding to prevent the program’s expiration, which would reduce benefits and potentially end the program altogether.
Full Committee Ranking Member Ted Cruz (R-TX) argued that increased regulations under the current administration are stifling innovation and increasing internet costs. He criticized ACP for inefficiency and its inflationary impact on internet prices, suggesting that the program has not effectively targeted those most in need and that resources might be better allocated towards enhancing competition and reducing regulatory barriers.
Subcommittee Ranking Member John Thune (R-SD) also expressed concerns about ACP’s efficiency, noting that a large proportion of the subsidies may not be reaching those truly in need. He advocated for a more targeted approach to support connectivity among low-income consumers and called for a reevaluation of federal strategies to close the digital divide.
During testimony, Nevarez spoke in support of extending ACP before it lapses, emphasizing the impact it has on military families and tribal communities. She also noted that the investment of resources involved in standing up ACP cannot be overlooked.
De Wit stressed the importance of a two-part approach to universal broadband requiring both supply solutions and demand incentives that support the building of infrastructure and lower cost services. She cautioned that a lapse of ACP will impact ISPs participation in the BEAD Program due to the uncertainty of a stable customer base. She urged Congress to extend ACP funding to avoid disruption but agreed they need better data and transparency around enrollment to understand impacts of any changes to the program on the households.
Levin also said that ACP needs to be extended. He emphasized that rural areas need to be connected now more than ever due to the rise of telehealth options and ongoing rural hospital closures. He highlighted how getting people online also benefits the government as it correlates with increased job placements and education.
Dr. Winfree cited his economic analysis which suggests that subsidies like ACP can inadvertently lead to higher overall prices for broadband services. He argued that the end of ACP would result in greater competition of price and quality among ISPs, resulting in lower market prices.
During Q&A, there was bipartisan agreement that ACP should be extended with Republican Senators urging further guardrails and transparency for the program. Sens. J.D. Vance (R-OH) and Amy Klobuchar (D-MN) asked about the net benefit of ACP and how it encourages investment in rural broadband infrastructure. Levin posited that the entire economy would suffer if ACP is allowed to expire and cited a recent study which found that for every dollar spent on ACP, the nation’s GDP increases by $3.89—nearly twice the multiplier of the far larger BEAD Program. De Wit noted that unserved households are the most expensive and difficult to serve and that without ACP, BEAD connections will be even more expensive. She added that rural providers may not be able to shoulder the cost of the operations and the capital deployment without the subsidy.
Sen. Cruz asked Winfree how his Spectrum Pipeline Act (S. 3909) would compare to ACP in promoting long-term broadband affordability to which Winfree noted that spectrum auctions would increase competition and bring more players into the market, ultimately reducing prices. He argued that ACP has a one-size-fits-all approach that is not a strong solution for rural areas. Winfree suggested the following changes to ACP and USF: 1) that Congress recapture ACP funds for low-income populations, 2) that Congress look at ways to take regional differences into account for rural vs. urban areas, and 3) explore requiring social security numbers to receive broadband benefits.
Sens. Gary Peters (D-MI) and Shelley Moore Capito (R-WV) argued that the lapse of ACP would be detrimental to the success of BEAD since BEAD participants rely on the guaranteed customers provided by ACP to determine where to apply for funding. Sen. Capito said she believes there is a need to narrow the eligibility requirements for ACP to ensure the program reaches those who are in the most need. Winfree posited that ACP benefits urban areas more than rural ones. He argued that like the Affordable Care Act, tax credits for ACP are being provided to people who do not need them.
Sen. John Hickenlooper (D-CO) asked about expanding the current USF contribution base and what the FCC can do currently without additional congressional action. Levin noted that the base could be expanded to broadband providers but not to big tech operations. He advocated for a short-term extension of ACP to ensure people stay connected. He said fundamentally, this is a congressional decision and called on reforms to the USF program.
The discussions underscored a bipartisan understanding of the importance of broadband access, though opinions varied on methods and regulatory approaches. The urgency to act to preserve ACP and other related programs was a recurrent theme, highlighting the significant reliance of many Americans on these services for basic healthcare, education, and economic activities. Senators also discussed the need to restore the FCC’s spectrum auction authority.
New Dems Lead Letters Advocating for FY2025 Funding for Rural Development
On May 1, New Democrat Coalition members led a total of 63 New Dem signatories on four separate letters to the House Appropriations Committee, including one that outlines the Coalition’s priorities related to development for the upcoming FY 2025 appropriations process.
In its rural development letter, Coalition members wrote that federal funds would “help rural Americans afford their energy and broadband utility costs and aids in providing energy and information connections to communities where providers would otherwise not affordably offer services.” Furthermore, they requested that the Appropriations Committee provide $112.4 million for the ReConnect program and $60 million for Distance Learning and Telemedicine grants.
Sens. Schatz and Cruz Introduce Bill to Keep Kids Off Social Media
On May 1, Sen. Brian Schatz (D-HI) and Senate Commerce Ranking Member Ted Cruz led a bipartisan coalition of their colleagues in introducing The Kids Off Social Media Act. The legislation updates a bill Sen. Schatz introduced last spring and would set a minimum age of 13 to use social media platforms and prevent social media companies from feeding algorithmically-boosted content to users under the age of 17. This legislation also includes Sen. Cruz’s previously introduced Eyes on the Board Act, a bipartisan bill to block social media access at schools. While existing law requires schools collecting federal subsidies to certify that a firewall blocks access to obscenity, pornography, and other harmful sexual content, there is currently no similar restriction blocking access on school networks to distracting and addictive social media apps and websites.
In a press release, Sen. Cruz said he is “grateful to Sen. Schatz for his dedication to finding solutions to the significant challenges facing millions of parents of young children and am hopeful that our bipartisan legislation, along with other proposals like KOSA and COPPA 2.0, will greatly reduce the physical and emotional dangers threatening many of America’s youth.”
Sen. Schatz added that “[t]he growing evidence is clear: social media is making kids more depressed, more anxious, and more suicidal. This is an urgent health crisis, and Congress must act.”
Rep. Bilirakis Op-Ed Calls for Light-Touch Regulation of the Internet
On April 25 (the same day the FCC reinstated net neutrality rules), the Tampa Bay Times published an Op-Ed by Rep. Gus Bilirakis (R-FL) arguing that “the internet should be shaped by the principles of the free market, not burdened by heavy-handed regulations like those proposed under the guise of net neutrality… Instead of pursuing heavy-handed regulations, we should focus on fostering a competitive marketplace that encourages investment and innovation. Policies that support the expansion of broadband access, such as the removal of bureaucratic barriers to deployment, can help connect more Americans without imposing unnecessary burdens on ISPs.”
Upcoming Hearings
- The Senate Commerce Committee Executive Session, which was initially scheduled for May 1, has been postponed. We will let you know when the Committee has rescheduled the markup session during which they plan to consider a few telecommunications bills, including the discussion draft of the Spectrum and National Security Act, the Rural Broadband Protection Act of 2023 (S. 275) and the Protecting Kids on Social Media Act (S. 1291).
- The House Energy & Commerce Communications Subcommittee postponed a hearing initially scheduled for May 7 to consider the budget of the FCC. All five commissioners were expected to testify. We will let you know when the hearing is rescheduled.
- On Wednesday, May 8, the House Appropriations Commerce, Justice, Science, and Related Agencies Subcommittee will hold a hearing to discuss President Biden’s FY2025 Budget Request for the U.S. Department of Commerce. Commerce Secretary Gina Raimondo is expected to testify. Please follow the Committee’s website for updates.
- Also on Wednesday, May 8, the Senate Commerce Consumer Protection Subcommittee will hold a hearing entitled “Strengthening Data Security to Protect Consumers.” Witnesses will include James Lee, Identity Theft Resource Center; Sam Kaplan, Palo Alto Networks; and Prem Trivedi, New America’s Open Technology Institute. Please follow the Committee’s website for updates.
- On Wednesday, May 15, the House Energy & Commerce Communications Subcommittee plans to hold a hearing to consider the budget of NTIA (with Alan Davidson testifying). Please follow the Committee’s website for updates.
- Finally, on Thursday, May 16, the House Appropriations Financial Services and General Government Subcommittee plans to hold a hearing to consider President Biden’s FY2025 Budget Request for the FCC. FCC Chair Jessica Rosenworcel and Commissioner Brendan Carr are expected to testify. Please follow the Committee’s website for updates.