Acting Federal Communications Chairwoman Jessica Rosenworcel said she’s pleased that the Senate infrastructure deal would codify the pandemic relief program known as the Emergency Broadband Benefit — but she is wary about one provision that would slash the monthly internet subsidy by 40 percent. “I do think it would be challenging for the agency to reduce the support from $50 a month to $30 a month,” she said. “But we will take whatever [the] legislation hands us.” Congress created the broadband subsidy program as part of the December 2020 pandemic aid package, slating $4.2 billion to help low-income Americans with their internet bills. The bipartisan Senate infrastructure plan would bolster the program with billions more, though at that lower monthly subsidy. So far, more than 5.5 million households have signed up since the FCC launched the $50 benefit, Chairwoman Rosenworcel noted, adding that about 200,000 new households sign up every week. These numbers, she said, demonstrate the need for a robust successor program once this temporary one runs out of funds. She is not alone in questioning the implications of slashing the benefit, however, and her views could prove influential among Capitol Hill negotiators eyeing future FCC funding. House Commerce Committee Chairman Frank Pallone (D-NJ) called the proposed cut a source of “real concerns.”

With the transition of millions of children and post-secondary students to online-based emergency remote teaching and the widespread need for online telecommuting, the COVID-19 pandemic has underscored the need for nationwide reliable broadband access. A fixed, landline Internet connection is critical not only for education, but also for locating and applying for a job, working remotely, and partaking in telemedicine treatments. This study examines the current funding mechanism for the universal service fund (USF), and estimates the amount of annual funding necessary to provide broadband service to those who currently cannot access it, as well as to those who can access it but cannot afford it. Absent any unexpected deviations from the trajectories that historical data indicate, the current USF mechanism is unsustainable and will fail to meet the needs of its target consumer base within the next five years. Next, the study reviews and assesses potential sources of USF funding along objective economic criteria. Based on our review of two alternative funding options—assessing a fee on digital advertising platforms or wireline Internet service providers (ISPs)—we conclude that assessing a service fee on digital advertising constitutes the best policy option according to our economic criteria. Even if the current USF funding levels were increased to $17.5 billion annually (generously assuming a 75 percent participation rate by eligible, low-income households, and a $50 per month subsidy regardless of location), by 2029 the contribution factor on digital advertising would only reach 7.3 percent, compared to a 14.6 percent contribution factor if the fees were levied on wireline ISPs.

State IT officials are starting to see the effects of federal pandemic recovery money flowing in, and are using the funds to better equip remote workforces, improve network security and expand broadband. The $1.9 trillion American Rescue Plan that President Joe Biden signed in March 2021 included $350 billion tailored for state and local governments. Unlike previous rounds of COVID-19 relief packages, that money came with few restrictions on how those governments could make use of the aid, opening the possibility for states, cities and counties to use it for long-overdue technology projects. Much of this IT spending happens behind the scenes. Maryland Secretary of Information Michael Leahy said that the most visible bit of the American Rescue Plan’s support for state and local governments is the billions of dollars for broadband expansion after a crisis that exposed the severity of the digital divide. While Leahy does not have a direct hand in broadband deployment — the Maryland Department of Housing and Community Development oversees the state’s broadband program — his office is lending technical assistance on how to use the $30 million for new development Gov. Larry Hogan announced in July 2021. “It’s the people issue,” Leahy said. “We have focused very strongly in Maryland in terms of utilization of broadband. The most important thing is knowing what data we have, were it resides.”

Baltimore Mayor Brandon Scott laid out the priorities and process for distributing the $641 million Baltimore City will receive as part of the 2021 American Rescue Plan Act (ARPA) to the community. Broadband and small businesses figure to play a key role in the plans. With the investment in broadband, Baltimore City is further prioritizing internet connectivity at a time when the City’s yawning digital divide is more acute as the world is increasingly virtual in a pandemic. It follows Scott’s appointment in early 2021 of Jason Hardebeck for the new City position of director of broadband and digital equity. It is likely to add to the big investment of $400 million in ARPA and state funds being allocated through the Connect Maryland initiative. Specifics weren’t detailed just yet, but Scott said the first round of awards will be distributed in September and October 2021.

Duane Stanley, an official with the North Dakota Attorney General’s Office, is the latest to sound the alarm about a wireless industry plan to sunset its legacy 3G network in the coming months. The AG’s office is joining the Alarm Industry Communications Committee, which says AT&T’s proposed February deadline for shutting down its own 3G wireless service is far too soon, given the many devices relying on that network. Take sobriety monitoring ankle bracelets, for example. In North Dakota, a state program meant as an alternative to incarceration involves the monitoring of hundreds of individuals through wireless-connected bracelets, Stanley wrote. “If 3G services were to be terminated before our organization has had an opportunity to upgrade its devices and arrange a swap-out with each monitored offender, there will be significant public safety consequences,” he warned in comments to the Federal Communications Commission. Stanley and some other parties want AT&T to push its 3G sunset from February 2022 until at least the end of next year. Although the FCC updated its consumer guide for the various planned 3G sunsets, critics want the commission to intervene more directly. AT&T, meanwhile, has rebuffed such criticism, telling the FCC  that its detractors have made “unsupported claims” and that it has provided plenty of notice and transition help.

Government officials, tech lobbyists, civil rights advocates and researchers participated in POLITICO’s inaugural tech summit: “At a Digital Crossroads: Washington and Silicon Valley.” Key takeaways include:

1. Self-regulation isn’t going to cut it. In the face of impending regulatory threats, some tech companies proactively made changes to the way they do business. But according to lawmakers and advocates, no amount of defensive efforts by the tech industry is going to save companies from impending government intervention.

2. Lawmakers and agencies are betting big that this is the time to make a change. Nearly every panel included mention of policymakers’ bullishness on the legislative vehicles currently moving through Congress with major tech provisions. They argued bipartisan interest will result in actual fixes to the societal ills surrounding technology.

3. Silicon Valley's lobbyists don’t quite get what DC wants. NetChoice CEO Steve DelBianco said the tech industry is looking for “clearer, broad signals that enjoy consensus support from both parties.” It’s possible that policymakers, particularly under Democratic control, are being quite clear about what changes they’re hoping for — but Silicon Valley doesn’t want to hear it.

4. It all goes back to the Federal Trade Commission. “There’s been a lot of discussion during reconciliation about funding the FTC,” Klobuchar said, referring to the $1 billion infusion for the agency that she is trying to add to the spending bill. “You have bipartisan agreement that these agencies have become shadows of their former selves.” Panelists disagreed over whether it’s time for a new digital regulator, but agreed on one thing — they’re curious to see how the FTC uses its full authority over the next four years.

Charter Communications announced the launch of Spectrum Community Assist, a $30 million, five-year philanthropic initiative to revitalize community centers in rural and urban areas and invest in job training programs in underserved communities across the company’s 41-state footprint. Through Spectrum Community Assist, Charter will partner with national and local nonprofit organizations to identify and improve centers in need of support. At each center, revitalization events with employee and community volunteers will be held to repair and enhance the physical buildings. As part of Charter’s ongoing commitment, the company also will invest in the centers’ job training efforts with cash grants and in-kind contributions, improve physical classroom spaces and provide new equipment. Because broadband is a critical component of a community center’s infrastructure, Charter will offer each community center its advanced 1 gigabit internet service.