President Joe Biden's efforts to provide affordable internet access for all Americans are facing uncertainty as a subsidy program is set to expire this spring. The Affordable Connectivity Program (ACP), which offers monthly subsidies of $30 for eligible families (and $75 for those on tribal lands), will run out of funds by the end of April unless Congress extends it.
Governor Roy Cooper of North Carolina, a Democrat who has worked with bipartisan governors to promote the program, emphasizes the importance of the ACP. He believes it should be a high priority for Congress, as the $30 monthly subsidy makes a significant difference for many families. One such recipient, Shirleen Alexander from Charlotte, relies on the subsidy to cover her grocery bills and ease the financial burden of medical expenses. Taking away the ACP would have a detrimental impact on her and many other senior citizens living on fixed incomes.
The ACP is a crucial component of President Biden's plan to provide internet access to every American by 2030. He has compared it to the Rural Electrification Administration, which brought electricity to rural areas during the New Deal era. Currently, only 43% of eligible households nationwide have signed up for the ACP subsidy. However, the program has proven to be immensely valuable for those who have enrolled, as it enables them to avoid financial trade-offs and provides access to essential services like telehealth, remote schooling, and work.
If the program expires, nearly 900,000 participating families in North Carolina, along with others across the country, will either lose their internet access or face increased expenses to stay connected. North Carolina is one of the states leading in ACP enrollment, with over 50% of eligible households registered for the program.
A bill to sustain the ACP through the end of 2024 with an additional $7 billion in funding has been proposed by a bipartisan group of lawmakers. This funding request exceeds President Biden's initial proposal, but it remains uncertain if the bill will gain enough support in a divided Congress. The Federal Communications Commission has already taken steps to wind down the program, instructing internet providers to notify customers about its projected end and halting new enrollments after February 7th.
Nate Denny, the deputy director for broadband in North Carolina, expresses his concerns about the winding down of the subsidy program, particularly as the state is set to receive $1.5 billion in federal funds for internet infrastructure. The ACP has played a crucial role in reducing the grant money internet providers need to build infrastructure in lower-income communities. It has provided a steady customer base and enabled providers to stretch their capital further, making state investments more effective.
The $42.5 billion Broadband Equity, Access and Deployment (BEAD) program, part of the Biden administration's strategy to bridge the digital divide, will provide the infrastructure funding. States have submitted draft plans incorporating lower-cost internet access options that would be viable with ACP support. Although the program's expiration could impact these plans, the National Telecommunications and Information Administration ensures that BEAD will still connect everyone and offer affordable plans for newly connected households.
Various Biden administration officials, including Secretary of Commerce Gina Raimondo, have emphasized the need for additional funding for the ACP during their visits across the country. Governor Cooper of North Carolina remains hopeful that Congress will continue to support the subsidies and keep the program alive, while also recognizing the state's commitment to providing affordable internet access.
As the ACP stands at a critical juncture, its fate lies in the hands of Congress. Balancing the urgent need for affordable internet access with the challenges of funding and political divisions will ultimately determine if the program can fulfill President Biden's goal of connecting all Americans to reliable high-speed internet.
