Lifeline/Low-Income Consumers

In comments filed with the Senate Working Group on the future of the Universal Service Fund (USF), many organizations underscored the issue of redundant government expenditure in their submissions, with a notable focus on whether the Affordable Connectivity Program (ACP) should be integrated into the USF framework. The USF includes four programs targeting different vulnerable portions of the broadband market: the Connect America Fund, Lifeline, Schools and Libraries (E-Rate) and Rural Health Care.

The Benton Institute for Broadband & Society is greatly concerned with the preservation and advancement of the Federal Communications Commission’s Lifeline program—a vital Universal Service Fund program that must continue to be improved to achieve its goals, broaden its reach, and expand access to those who can benefit the most. Lifeline was created nearly 40 years ago with the aim of providing low-income households with low-cost landline telephony options. Now, nearly all U.S. households have telephone service and the Lifeline program plays an essential role in ensuring affordability.

Municipal leaders are on the front lines of the digital divide, responding to the needs and concerns of the communities they serve.

The US telecommunications market has significantly evolved since Congress last overhauled the Communications Act more than a quarter century ago. But the Federal Communication Commission’s universal service distribution policies – though periodically tweaked – are still rooted in a framework designed to support incumbent telephone companies. However, the Congress and the FCC now have before them an opportunity to reimagine and reinvent universal service policy for the future.

On July 27, 2023, the U.S. Senate's Universal Service Fund (USF) Working Group invited public comment on the future of the USF with the stated goal of creating a bipartisan forum to guide education, awareness, and policymaking on the USF. The opportunity to weigh in with the senators has had me thinking about the importance of the USF for bringing affordable broadband infrastructure and services to millions of people around the country. So I'm taking this opportunity to share my thoughts on one of the most important tools in our national effort to reach truly universal broadband.

The Federal Communications Commission’s Wireline Competition Bureau (WCB) seeks nominations for the following Board member positions on the Board of Directors of the Universal Service Administrative Company (USAC) listed below for a three-year term:

To assist those affected by the Hawai’i Wildfires, this temporary waiver of certain Lifeline program eligibility rules will ensure that consumers receiving federal disaster assistance can easily apply for and enroll in the Lifeline program. Because of the exigent circumstances arising from the Hawai’i Wildfires, the FCC finds that there is good cause for further action to ensure that consumers in the affected areas receive critical assistance for their communications needs.

Congress and the Federal Communications Commission must act swiftly and purposefully to ensure that low-income households continue to have sustainably affordable access to communications services through a fully funded low-income program that is structured to effectively close the affordability component of the digital divide while preserving program integrity. National Lifeline Association (NaLA) offers the following recommendations and observations:

Over the past 26 years, the Universal Service Fund — a federal subsidy pool collected monthly from American telephone customers — has spent close to $9 billion a year to give Americans better phone and internet connections, wiring rural communities in Arkansas, inner-city neighborhoods in Chicago, and public libraries and schools across the country. Now it faces the biggest crisis of its existence, and Congress appears paralyzed in the effort to fix it.

The basic tenet of universal internet service—that the government should assist those who cannot afford basic access to the network—has long been a cornerstone of American telecommunications policy. Unfortunately, it is far from clear whether Lifeline, the federal program tasked with getting low-income households online, actually addresses this problem. The recently enacted Affordable Connectivity Program (ACP) threatens to compound Lifeline’s errors. The advent of ACP provides a unique opportunity to rethink our approach to broadband affordability initiatives.