This week, the Information Technology and Innovation Foundation Director of Broadband Joe Kane issued a news release announcing that the Affordable Connectivity Program is expected to run out of money in 2024. The Information Technology and Innovation Foundation's new report warns that any lapses in ACP-funded plans would disproportionately affect the most financially vulnerable U.S. households.
“Congress has created effective subsidy programs that render older programs duplicative and wasteful. Yet the old programs persist, siphoning funding away from more effective ones and increasing phone bills.” ITIF Director of Broadband and Spectrum Policy Joe Kane said.
According to a new research published by the Information Technology and Innovation Foundation on July 17, the Affordable Connectivity Program is expected to run out of money in 2024, and the most financially precarious American households will suffer the most from any failures in ACP-funded programs. The report requests that Congress find $5 to $6 billion from duplication and ongoing broadband subsidy programs. The research examines the state of current broadband subsidy programs in the United States. ITIF asserts that Lifeline, a Federal Communication Commission initiative that gives low-income individuals a discount on broadband connection, is superseded and outmoded by the ACP. The Broadband Equity, Access, and Deployment program, which is more successful, has replaced the FCC Universal Service Fund High Cost initiative, which attempts to bridge the rural-urban digital divide. The U.S. Department of Agriculture's ReConnect initiative, for example, is redundant and ineffective in comparison to the BEAD program, the analysis concludes.
The ITIF suggests a strategy to maintain inexpensive connectivity by discontinuing outmoded broadband initiatives and breaks down the average annual costs for Lifeline, High-Cost, and ReConnect. The study urges Congress to take the following actions: 1. Put an end to all (non-tribal) federal programs such as High-Cost, Lifeline, ReConnect, and others focusing on broadband deployment or individual broadband affordability. 2. Adequate resources to support the ACP, equal to the average annual expenditure for such programs. 3. To make up for any leftover deficiency, alter the ACP benefit's size and eligibility requirements.
The paper ends by pointing out that some American populations would continue to be offline even if this plan is implemented. To attain complete digital inclusion, these groups would need a separate set of legislative measures. The government should put its greatest priority on providing ample resources and widely dispersed, accurate data to support initiatives to increase digital inclusion, according to ITIF.
In light of this report, policymakers face the challenge of balancing existing subsidy programs while ensuring equitable access to affordable broadband for all Americans, particularly the financially vulnerable households at risk of being left behind in an increasingly digital society.
