Luján, Heinrich Push to Secure Funding for Affordable Connectivity Program in Forthcoming Government Funding Package

WASHINGTON— In a letter to Senate leadership, U.S. Senators Ben Ray Luján (D-N.M.), Chair of the Subcommittee on Communications, Media, and Broadband, and Martin Heinrich (D-N.M.) urged funding for the Affordable Connectivity Program (ACP) to be included as part of future must-pass legislation, including the next government funding package. 

Earlier this month, the FCC Chair notified Congress that funding for the program will run out at the end of April, causing families to see higher internet costs. Heinrich and Luján voted to create the ACP, which is part of the Infrastructure Law, to lower costs for New Mexicans and increase high-speed internet connectivity. 

“We write to urge you to take immediate action to fund the Affordable Connectivity Program (ACP) and the Secure and Trusted Communications Networks Reimbursement Program. Both of these programs are vital for closing the digital divide, by making connectivity affordable to millions of working families and ensuring providers are able to continue serving rural communities,” wrote the senators. 

“A lapse in ACP funding will therefore limit the positive impact of Congress’ historic $42 billion investment in connecting every unserved American under the Broadband, Equity, Access, and Deployment (BEAD) Program. Taking immediate action to continue funding ACP today is essential to keep Americans connected while this important work is done to enact meaningful improvements, limit waste, fraud, and abuse, and identify a long-term funding mechanism for the program,” the senators continued. 

The letter was led by U.S. Senator Jacky Rosen (D-Nev.). 

Alongside Heinrich and Luján, the letter was signed by U.S. Senators John Fetterman (D-Pa.), Raphael Warnock (D-Ga.), Chris Coons (D-Del.), Tammy Baldwin (D-Wis.), Catherine Cortez Masto (D-Nev.), Jack Reed (D-R.I.), Tim Kaine (D-Va.), Ben Cardin (D-Md.), Peter Welch (D-Vt.), Michael Bennet (D-Colo.), Amy Klobuchar (D-Minn.), Sheldon Whitehouse (D-R.I.), Alex Padilla (D-Calif.), Sherrod Brown (D-Ohio), Tammy Duckworth (D-Ill.), Laphonza Butler (D-Calif.), Ron Wyden (D-Ore.), Debbie Stabenow (D-Mich.), Mazie Hirono (D-Hawaii), Bob Casey (D-Pa.), Ed Markey (D-Mass.), Mark Warner (D-Va.), Cory Booker (D-N.J.), Kyrsten Sinema (I-Ariz.), Mark Kelly (D-Ariz.), Jeanne Shaheen (D-N.H.), Elizabeth Warren (D-Mass.), Bob Menendez (D-N.J.), Gary Peters (D-Mich.), and Angus King (I-Maine) 

The full text of the letter is HERE and below:  

Dear Majority Leader Schumer, Minority Leader McConnell, Speaker Johnson, and Minority Leader Jefferies: 

We write to urge you to take immediate action to fund the Affordable Connectivity Program (ACP) and the Secure and Trusted Communications Networks Reimbursement Program. Both of these programs are vital for closing the digital divide, by making connectivity affordable to millions of working families and ensuring providers are able to continue serving rural communities. Congress must leverage upcoming must-pass legislation to invest in these key programs and ensure that families across the country are not left without access to affordable high-speed internet. 

As part of the historic Bipartisan Infrastructure Law – the largest investment in broadband in American history – Congress created ACP, recognizing the barrier affordability poses to connecting low-income households. This critical law provides qualifying households a $30 discount on their monthly internet bill, up to $75 for households located on tribal lands. 

Unfortunately, earlier this month, Federal Communications Commission (FCC) Chair Jessica Rosenworcel notified Congress that, due to high demand for the program, April will be the final full month of funding available for ACP. This potential lapse in funding will jeopardize millions of Americans’ affordable access to a reliable, high-speed internet connection. Over 23 million households use ACP to connect to the internet each month. A recent survey conducted by the FCC showed that nearly 80 percent of ACP subscribers would lose or change their internet service plan if the program ceases.  Access to a dependable internet connection is essential in the 21st Century, connecting families to critical needs like work, school, and healthcare, and Congress must not allow the program making connectivity possible for millions of Americans lapse. 

ACP has been an unmatched success – a pivotal catalyst in providing every American, no matter their geography or income, access to the same opportunities an internet connection provides. A recent report found that for every dollar spent on ACP, households receive nearly twice in economic benefits. That report did not quantify the significant benefits associated with broadband adoption like increased household income and employment, women’s labor force participation, farm productivity, and lower healthcare costs. Additionally, the benefits of ACP extend beyond the households that receive this transformative benefit each month. A 2022 study found that the ACP reduces costs to deploy broadband in rural areas by 25 percent per household. A lapse in ACP funding will therefore limit the positive impact of Congress’ historic $42 billion investment in connecting every unserved American under the Broadband, Equity, Access, and Deployment (BEAD) Program. 

We recognize the important work being done by the Senate’s Universal Service Working Group to reform and modernize the FCC’s Universal Service Fund, while addressing long-term funding for ACP. Taking immediate action to continue funding ACP today is essential to keep Americans connected while this important work is done to enact meaningful improvements, limit waste, fraud, and abuse, and identify a long-term funding mechanism for the program. 

A significant funding gap also exists in securing and maintaining our rural wireless networks. In 2020, Congress took steps to protect and strengthen our national security by passing the Secure and Trusted Communications Networks Act of 2019, which required companies to remove highrisk Chinese equipment in their communications network by June 30, 2024. The FCC was authorized to reimburse companies for the cost of ripping out and replacing this equipment, but Congress has only provided 39.5 percent of the funding needed to reimburse providers for replacing covered equipment. Small and rural providers are disproportionately affected and without additional funding, many will be forced to eliminate service in critical areas of their networks. Multiple providers have reported that, without additional funding through this initiative, they will reduce coverage areas by over half, with some eliminating service by 90 percent in certain states, threatening communities’ access to basic wireless communication and emergency services. Estimated coverage cuts would be catastrophic for communities across our nation – we cannot let insufficient funds for this effort to widen the digital divide in rural America. 

We stand ready to work with you in a bipartisan way to stave off the funding shortfalls for both 

of these critical initiatives, including how to pay for new investments in each. Many of us have ideas about potential pay-fors – whether spending offsets or revenue raisers – that can bridge the gaps for ACP and the Secure Networks Program, giving Congress time to consider a longer-term package that sustains these programs, maintains American leadership in telecommunication innovation, and addresses critical national security concerns. 

Failing to fund ACP and the Secure Networks Program would be an enormous loss for millions of Americans across the United States and represent a profound erosion in progress made to close the digital divide. As Congress finalizes the remaining FY2024 spending bills and puts together must-pass legislation, we urge you to work with us to ensure American families remain connected. 

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