WASHINGTON, April 29, 2024 — Senate Commerce Committee Chair Maria Cantwell (D-Washington) has introduced a crucial amendment to the upcoming spectrum auction legislation, aiming to significantly increase the funding for the Affordable Connectivity Program (ACP). The proposed amendment would elevate the ACP funding from $5 billion to $7 billion, with the increased allocation to be financed through proceeds from spectrum auctions. This boost is intended to sustain the program that offers critical internet discounts to low-income households. The Senate Commerce Committee is slated to vote on this bill along with other broadband-related measures on May 1.
The bill in question, dubbed the Spectrum and National Security Act, would renew the Federal Communications Commission’s (FCC) authority to auction off spectrum bands to commercial users for an additional five years. This authority first lapsed in March 2023 and has not been reinstated, posing challenges to managing spectrum resources efficiently. The proposed legislation mandates the FCC to auction spectrum in the upper 12 gigahertz band within three years and directs the National Telecommunications and Information Administration to assess the feasibility of utilizing additional spectrum bands.
Moreover, the bill outlines a comprehensive strategy to support the technological and workforce development in the telecom sector. It includes setting up a $200 million program to aid nonprofits and minority-serving institutions in applying for broadband grants, alongside funding for spectrum sharing initiatives, telecom workforce training, and enhancements to the 911 emergency systems.
This legislative effort represents a decisive attempt to secure ongoing support for the ACP, which currently provides monthly internet discounts of $30 to $75 to approximately 23 million qualifying American households. With funding set to expire, the program faces a critical juncture; the ACP's cash reserves are expected to provide only a reduced $14 benefit in May, a substantial decrease from the full subsidy previously available.
In a related move, Rep. Yvette Clarke (D-New York) has launched a discharge petition for the ACP Extension Act in the House, seeking to bypass regular committee approval and bring the bill directly to a floor vote. This bold step requires bipartisan support, evident from the 228 cosponsors, including 22 Republicans, rallying behind the proposal.
As part of their commitment to low-income subscribers, Charter Communications, the program’s largest participant, announced an adjustment to the partial ACP benefit. During an earnings call, Charter CEO Christopher Winfrey confirmed the company would add $1 to the government-provided $14 benefit in May, rounding it up to $15 to ease the transition for customers.
The Senate is also poised to consider the Rural Broadband Protection Act and the Network Equipment Transparency Act during the May 1 markup session. These initiatives aim to improve the oversight and transparency of broadband deployment, particularly in addressing the challenges faced by the Rural Digital Opportunity Fund and the broader impacts of supply chain issues on broadband access.
This suite of legislative efforts underscores a pivotal moment for U.S. telecommunications policy, as lawmakers work diligently to address the connectivity needs of the nation’s most vulnerable populations while fostering the advancement of a secure and competitive technological infrastructure.