Lifeline/Low-Income Consumers

A number of former Federal Communications Commission (FCC) officials are pointing to expanding the Lifeline program, under the Universal Service Fund (USF), as the way to save a version of the Affordable Connectivity Program (ACP), and prevent tens of millions of people from losing access to the monthly broadband subsidy. One way the FCC could do that was outlined in a recent petition for expedited rulemaking filed

The Federal Communications Commission is poised to raise taxes through its Universal Service Fund—a regressive, hidden tax on consumers' phone bills that funds a series of unaccountable, bloated internet subsidy programs. Rather than giving the FCC carte blanche to expand its balance sheet, Congress must reform the USF's structural problems, reevaluate its component programs, and get the FCC's spending under control. Here is my plan to do that. 

Sen Shelley Moore Capito (R-WV) indicated to West Virginia TV station WTRF that Capitol Hill lawmakers were looking at the Universal Service Fund as a source of money for the Affordable Connectivity Program. The USF has about $8.

A recent survey revealed that 81 percent of households with schoolchildren receiving a monthly broadband subsidy are worried about the prospect of losing this assistance and its potential effects on their children's education, according to the Universal Service Administrative Company. These metrics “demonstrate with incredible clarity just how important it is to stay connected in modern life and how dangerous it is to threaten disconnection,” said Federal Communications Commission Chairwoman Jessica Rosenworcel.

The Public Service Commission of Wisconsin (PSC) is encouraging eligible organizations to apply for grant funding to improve the availability of telecommunications services for Wisconsin residents. The grant funding opportunities include the Nonprofit Access Grant Program, the Lifeline Outreach Grant Program, and the Telemedicine Grant Program. All three grant programs are funded by the Universal Service Fund to help Wisconsin residents get essential and advanced telecommunications services. 

On Dec 12, 2023, Sen Ben Ray Luján (D-NM) wrote to Federal Communications Commission Chairwoman Jessica Rosenworcel requesting input on proposals to modify the contribution base for the Universal Service Fund (USF).

Federal Communications Commission Chairwoman Jessica Rosenworcel informed Congress that without an additional $6 billion in funding for the Affordable Connectivity Program (ACP), the program will run out of funds by mid-2024. The program, created with over $14 billion, is less than 2 years old.

"The USF is a critical tool to provide, among other things, Lifeline internet and voice service to low-income Americans, and reduced-rate internet access to schools, libraries and healthcare providers. Today's opinion underscores the importance—and the validity—of the Congressionally-mandated USF program.

Today’s decision is a victory for the many rural and urban consumers and anchor institutions across the country who rely on the services supported by the federal Universal Service Fund. The USF has been, and continues to be, a critical tool to narrow the digital divide and help address connectivity gaps. The court’s ruling affirms that Congress’ directive to the FCC—over 25 years ago—to collect contributions in support of this vital Fund is constitutional. Other courts considering similar challenges should reach the same conclusion.

According to projections from the Benton Institute for Broadband and Society and the Information Technology and Innovation Foundation, sometime around the middle of 2024, the Affordable Connectivity Program (ACP) will run out of money.