Broadband Affordability is a Persistent Problem That is Only Going to Become More Challenging for Pennsylvania Residents
Tuesday, August 18, 2026
Digital Beat
Broadband Affordability is a Persistent Problem
That is Only Going to Become More Challenging for Pennsylvania Residents
Testimony prepared for the Pennsylvania House
Communications & Technology Committee
Overview
The affordability of key services such as home broadband is front and center for citizens and policymakers alike. For broadband, a number of points are important to keep in mind when thinking about service affordability:
- Affordability of service is a persistent problem for low-income households who subscribe to broadband.
- Broadband affordability is about to become a bigger problem because of the One Big Beautiful Bill. The problem will be more acute in Pennsylvania than in other states.
- There are solutions that move the dial, such as developing low-cost or subsidized internet plans for qualifying households and investing in digital skills programs.
- Doing this is worthwhile. Research shows that programs that lower the cost of internet service for low-income households return $2 in benefits for every $1 invested.
Affordability is a Persistent Challenge for Low-Income Households
What we mean by affordability depends a great deal on context. The loss of a job means last week’s prices are effectively higher this week for the person no longer working. Someone else’s affordability challenge may unfold more slowly, with rising rent payments, insurance costs, or gas prices eating into their income. In either case, people have good reason to feel goods and services are less affordable than they used to be, even if prices have not changed.
For low-income households, this dynamic means weighing what to cut back or cut out. They have to negotiate trade-offs that are foreign to most Americans. Will they pay the health care premium this month or the broadband bill? This makes paying for the basics a balancing act and some people may trip and fall from time to time. Giving up the home broadband connection – at least for a while – may be a painful but unavoidable outcome.
I use the term “subscription vulnerability” to describe the precariousness of connectivity for low-income households. These are households who say their broadband bill is a challenge to pay or who have at some point lost service due to household budget constraints. This term first came to light in a 2021 study of Philadelphia households and the challenges they faced maintaining home broadband connections during the pandemic. That study showed that 31% of low-income Philadelphia households lost service due to the pandemic’s economic shock.
The number of households in the United States who are “subscription vulnerable” is sizable. A 2024 national study of low-income households found that 43% of lower-income households (defined as those making $50,000 or less annually) were subscription vulnerable. These were households worried about paying their monthly broadband bill and who had lost internet service in the past year when they could not pay their bills.
Managing Connectivity is About to Get Harder
Many of the problems of subscription vulnerability were exposed during the pandemic, as the swift onset of the crisis showed serious gaps in home connectivity. Today we have a very different problem – a slow drip of financial constraints facing low-income households due to the One Big Beautiful Bill (OBBB). The Congressional Budget Office estimates that OBBB would result in a reduction in household resources of $1,200 per year for the poorest fifth of U.S. households. These declines are due to less government spending on Medicaid and the Supplemental Nutritional Assistance Program (SNAP). A decline in subsidies for Affordable Care Act (ACA) health insurance premiums is an additional strain on household finances.
By my reckoning, the impacts of OBBB could result in the loss of 5.6 million broadband connections among households in the lowest income quintile – with an estimate of approximately 233,000 lost connections in Pennsylvania alone. This estimate, in light of subsequent economic events (i.e., rising gas prices), may be an understatement.
We are beginning to see evidence of OBBB’s deleterious consequences. For example:
- SNAP cuts: The Center on Budget Policy and Priorities estimates that SNAP participation fell by more than 4.5 million people (11 percent) between July 2025 and April 2026. Nearly half of those losing benefits are children.
- In Pennsylvania, SNAP enrollment has fallen by 220,000 recipients, which comes to an 11% decline.
- Fewer people with health insurance: A recent U.S. Department of Health and Human Services report found that ACA enrollment declined by 3 million – from 22.1 million to 19.2 million people between February 2025 and February 2026. The Kaiser Family Foundation (KFF) projects that enrollment could fall to as low as 16.3 million people in 2026.
- In Pennsylvania, enrollment in ACA health insurance plans have fallen by 431,000 as of July 1 of this year.
- Higher Affordable Care Act premiums: KFF estimates that ACA premiums have risen by 58% for enrollees (from $113 per month and to $178) as enhanced premium tax credits expired.
- Pennsylvanians have experienced higher ACA premium hikes, with those earning $40,000 a year or less seeing their premiums increase by between $85 and $100 per month. That increase is roughly equivalent to the cost of monthly broadband bills.
These impacts are likely to force many low-income households to choose between broadband, feeding the kids, having health insurance, or paying for medical care out-of-pocket. A broadband connection – that helps with homework, finding cheaper options for consumer goods, and managing the household – will be on the chopping block.
OBBB’s Impact on Pennsylvania is Likely to be More Severe Than Elsewhere
The situation in Pennsylvania will be more dire because of recent trends in broadband adoption in the commonwealth. Nationally, progress in home broadband adoption – focusing on the key metric of home wireline service – has stalled. From 2022 to 2024, there was only a modest growth in this measure – a 0.6 percentage point increase from 75.9% to 76.5% of households having wireline service from 2022-2024.
In Pennsylvania, broadband adoption has declined. In 2022, 76.2% of Pennsylvania households subscribed to a wireline broadband plan at home, a figure that fell 75.5% in 2024. The broadband adoption figure for the commonwealth went from being slightly ahead of the national figure in 2022 to trailing it in 2024 by a full percentage point. For example, from 2022 to 2024:
- Philadelphia saw a 3.5 percentage point decline in broadband adoption.
- Lackawanna County fell by 9.6 percentage points.
- Lycoming County fell 5.4 points.
- Indiana County had a decline of 0.6 points.
The headwinds of OBBB are starting to hit Pennsylvania just as the home broadband adoption environment is already significantly challenged. [An appendix provides detailed data for all Pennsylvania counties listed in the American Community Survey 2024 1-year estimates.]
There Are Solutions
Two types of interventions can help promote connectivity for low-income households:
- Direct cost relief
- Investment in local programs to guide people through the process of getting online and that provide digital skills resources.
Implementing direct cost relief would entail either legislating the creation of low-cost plans or developing Affordable Connectivity Program (ACP)-like subsidy plans on the state level. For direct cost relief, New York State passed the Affordable Broadband Act, which requires ISPs serving more than 20,000 customers to offer $15 per month home broadband plans for households meeting specific income criteria (e.g., being eligible for SNAP benefits). Connecticut took a similar approach, requiring companies that have contracts with the state to offer a low-cost plan of $40 per month or less to eligible households receiving government assistance.
New Mexico has taken a different approach, setting aside setting aside funds from the state's universal service fund for the creation of a broadband subsidy of up to $30 per month for qualifying low-income households. New Mexico has budgeted no more than $10 million for the first year, with a $45 million funding cap for subsequent years.
Pennsylvania has the advantage of having extensive statewide Xfinity coverage. This means Xfinity’s Internet Essentials program – $14.95 per month for 75 Megabits per second (download) service – is widely available. But even with Internet Essentials, the state’s broadband adoption figures have not been encouraging, as the data cited above show.
This leads to the second point – investing in digital skills training programs at the local level. These programs typically offer courses on how to use the internet and computers, access to free or low-cost devices, and help in finding and enrolling clients in low-cost internet service plans. The returns to such initiatives are positive. These initiatives also represent investments in local capacity for problem-solving, which have long term community benefits.
Low-cost service plan solutions and digital skills capacity investments should go hand-in-hand. Subsidies without skills training is akin to launching a new product with no marketing. For reaching cost-conscious low-income consumers, this means that internet service providers must partner with governments and local non-profits to foster trust among target populations that are often wary of the reliability of low-cost offers.
Digital Inclusion as Liberty
Solving broadband affordability is a pathway to helping low-income households deal with wider affordability problems. Reliable connectivity means low-income households can find deals online that save them money. Reliable connectivity also offers a pathway to employment, the means to do homework, and a way to manage household healthcare. Analysis of the ACP found that every dollar spent on the subsidy returned nearly $2 in benefits.
The monetary benefits are important, but so are other benefits. As one interviewee in our research said about the ACP and the consequences of its termination: “When we were on it [the ACP], we felt almost normal.”
This quote captures what we mean by “digital inclusion.” Reliable and affordable connectivity grants low-income households the same autonomy as others and the liberty to use online resources to negotiate modern life.
Appendix: Adoption of internet services by Pennsylvania county in 2024
|
American Community Survey 2024 1-year results |
Percentage point change 2022 to 2024 |
|||||||
|
Number of households |
Broadband of any type |
Cellular data plan |
Wireline broadband |
Broadband of any type |
Cellular data plan |
Wireline broadband |
||
|
United States |
132,737,146 |
93.2% |
88.7% |
76.5% |
2.2 |
3.3 |
0.6 |
|
|
Pennsylvania |
5,361,724 |
92.1% |
86.3% |
75.5% |
2.2 |
2.8 |
-0.7 |
|
|
Adams |
42,119 |
93.0% |
86.6% |
70.6% |
5.2 |
5.7 |
2.4 |
|
|
Allegheny |
550,169 |
93.1% |
87.7% |
80.3% |
2.9 |
4.7 |
0.7 |
|
|
Armstrong |
29,289 |
90.4% |
79.4% |
74.0% |
2.6 |
1.4 |
-2.4 |
|
|
Beaver |
71,386 |
91.7% |
84.3% |
77.7% |
1.3 |
3.6 |
1.6 |
|
|
Berks |
165,017 |
93.2% |
87.9% |
78.2% |
3.9 |
4.2 |
4.4 |
|
|
Blair |
50,837 |
89.5% |
81.1% |
77.2% |
3.2 |
4.5 |
3.8 |
|
|
Bucks |
250,952 |
95.8% |
91.2% |
83.3% |
1.1 |
0.8 |
-1.1 |
|
|
Butler |
81,158 |
92.0% |
85.4% |
79.9% |
1.1 |
1.7 |
0.0 |
|
|
Cambria |
58,011 |
88.7% |
81.7% |
73.5% |
3.5 |
5.0 |
5.1 |
|
|
Carbon |
26,494 |
88.0% |
82.0% |
75.1% |
-0.6 |
0.8 |
-1.4 |
|
|
Centre |
57,295 |
85.5% |
81.3% |
72.9% |
-2.4 |
-1.1 |
-3.2 |
|
|
Chester |
209,767 |
95.6% |
91.8% |
85.8% |
0.2 |
1.1 |
0.4 |
|
|
Clearfield |
33,906 |
88.6% |
82.1% |
66.3% |
4.7 |
5.0 |
-1.6 |
|
|
Columbia * |
28,024 |
90.4% |
82.5% |
65.3% |
2.9 |
0.6 |
1.5 |
|
|
Crawford |
34,999 |
85.9% |
77.5% |
65.8% |
0.7 |
1.8 |
0.8 |
|
|
Cumberland |
108,868 |
94.8% |
89.2% |
81.3% |
2.6 |
2.9 |
0.4 |
|
|
Dauphin |
124,020 |
92.0% |
85.1% |
76.0% |
0.7 |
0.0 |
-3.1 |
|
|
Delaware |
216,615 |
95.5% |
91.7% |
81.0% |
2.7 |
4.4 |
-0.2 |
|
|
Erie |
111,874 |
91.0% |
83.9% |
75.8% |
1.5 |
1.8 |
2.9 |
|
|
Fayette |
55,091 |
84.9% |
75.3% |
69.7% |
-0.3 |
1.4 |
0.0 |
|
|
Franklin |
63,638 |
91.6% |
83.5% |
74.4% |
3.2 |
3.3 |
0.2 |
|
|
Indiana |
31,921 |
85.3% |
78.2% |
55.0% |
6.1 |
9.9 |
-0.6 |
|
|
Lackawanna |
87,108 |
86.3% |
77.1% |
66.5% |
-2.8 |
-6.1 |
-9.6 |
|
|
Lancaster |
217,820 |
90.3% |
83.9% |
75.9% |
1.9 |
1.5 |
0.6 |
|
|
Lawrence |
36,366 |
87.9% |
79.2% |
70.4% |
1.4 |
-0.1 |
-3.4 |
|
|
Lebanon |
58,914 |
90.2% |
82.8% |
70.3% |
2.1 |
1.3 |
-0.1 |
|
|
Lehigh |
145,402 |
92.8% |
87.5% |
75.9% |
2.1 |
2.6 |
-1.6 |
|
|
Luzerne |
140,231 |
91.5% |
84.3% |
72.2% |
2.5 |
-0.3 |
-1.2 |
|
|
Lycoming |
47,922 |
90.2% |
82.6% |
64.1% |
1.5 |
4.2 |
-5.4 |
|
|
Mercer |
47,728 |
89.3% |
79.7% |
69.5% |
1.2 |
0.7 |
-2.7 |
|
|
Monroe |
60,853 |
94.2% |
87.6% |
80.1% |
1.2 |
2.0 |
-1.2 |
|
|
Montgomery |
339,775 |
95.5% |
90.9% |
82.4% |
1.1 |
1.3 |
-2.5 |
|
|
Northampton |
123,535 |
93.3% |
88.3% |
77.6% |
3.1 |
3.2 |
0.2 |
|
|
Northumberland |
38,032 |
89.2% |
81.7% |
68.1% |
4.6 |
4.3 |
2.3 |
|
|
Philadelphia |
702,646 |
93.0% |
89.7% |
70.6% |
3.4 |
4.8 |
-3.5 |
|
|
Schuylkill |
59,469 |
90.0% |
84.3% |
74.2% |
3.6 |
2.7 |
5.0 |
|
|
Somerset |
29,893 |
84.3% |
76.0% |
61.5% |
3.7 |
5.5 |
4.1 |
|
|
Washington |
91,096 |
91.1% |
85.7% |
75.2% |
2.2 |
5.0 |
0.5 |
|
|
Westmoreland |
157,063 |
91.4% |
84.8% |
78.9% |
2.8 |
3.5 |
2.3 |
|
|
York |
185,039 |
92.3% |
85.9% |
70.9% |
2.2 |
1.7 |
-2.9 |
|
|
All other PA counties |
391,382 |
88.4% |
80.2% |
67.8% |
2.3 |
2.8 |
-1.0 |
|
The table above relies on the American Community Survey (ACS), a national survey conducted by the U.S. Census Bureau whose large sample size permits analysis to various levels of geography. With more than 3 million respondents, the 1-year estimates, which this table uses with 2024 data, allows examination of data for places with more than 65,000 people. For Pennsylvania, that means 40 of its 67 counties. These 40 counties are listed in the table above. The entry for “all other PA counties” represents the other 27 counties whose populations were not large enough to have 1-year ACS data. Thus, figures for “all other counties” are the difference between statewide totals and the 40 counties in the ACS 1-year data for 2024. The asterisk (*) for Columbia County indicates that data showing differences between 2022 and 2024 compares 2023 and 2024 data. That is because Columbia County did not have enough respondents in the 2022 ACS to list results for the 1-year estimate.
About John B. Horrigan
John B. Horrigan is Senior Fellow at the Benton Institute on Broadband & Society, with a focus on technology adoption and digital inclusion. Horrigan has served as an Associate Director for Research at the Pew Research Center and Senior Fellow at the Technology Policy Institute. During the Obama Administration, Horrigan was part the leadership team at the Federal Communications Commission for the development of the National Broadband Plan (NBP). For the NBP, Horrigan was responsible for the plan’s recommendations on broadband adoption. He has done extensive research on the digital divide, including evaluating the impact of the Affordable Connectivity Program, assessing the impact of digital skills training on individuals, and the role of libraries in communities. Horrigan has a Ph.D. in public policy from the University of Texas at Austin and his undergraduate degree in economics from the University of Virginia.
About the Benton Institute
The Benton Institute for Broadband & Society is a 45-year-old, private operating foundation that conducts research and engages in advocacy to bring open, affordable, high-performance broadband to all people in the United States to ensure a thriving democracy. To advance its mission, Benton supports research on broadband affordability. These comments reflect the institutional view of the Benton Institute for Broadband & Society, and, unless obvious from the text, is not intended to reflect the views of its individual officers, directors, or advisors. Find out more here.
The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.
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