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POLITICO: HOUSE E&C EXPLORES THE FUTURE OF BROADBAND PROGRAMS

September 21, 2023

The House Energy and Commerce tech subcommittee today will convene broadband experts 

from the public and private sectors to discuss the effectiveness and future of key federal 

broadband funding programs.

 

The hearing comes as one major funding program meant to close the digital divide is expected to 

run dry in the coming months, and as a second faces legal challenges.

 

— Funding concerns loom: One of those funds is the Affordable Connectivity Program, which 

helps low-income households pay their internet bills. The program is administered by the Federal 

Communications Commission, and has just shy of 21 million households enrolled. ACP money 

is expected to run out in early 2024 unless lawmakers find a way to renew funding.

 

“Billions of dollars already invested in connecting rural America could be squandered if 

Congress allows this program to disappear,” said Kathryn de Wit, project director for the Pew 

Charitable Trusts Broadband Access Initiative. “Without ACP, families will be unable to stay 

connected to work, school and health care [and] internet service providers that have enjoyed 

increased customer bases, decreased customer turnover, and more stable internet could see those 

benefits fade.”

 

But some lawmakers and the FCC Office of Inspector General have raised concerns over the 

agency’s administration of the program, particularly around the lack of adequate anti-fraud 

measures and performance goals.

 

GOP Commissioner Nathan Simington also told the subcommittee during a June hearing that if 

lawmakers did want to continue funding the program, it’s crucial to implement procedures to 

ensure money is going to households actually in need, and that “the FCC should look into the 

factors going into adoption and ensure that ACP dollars are driving adoption and uptake.”

Witnesses today will advocate for the continuation of the program. Sara Nichols, senior planner 

for the local government planning and development organization Land of Sky Regional Council, 

will point to her personal experiences implementing broadband and digital inclusion efforts in 

support of ACP funding.

 

Justin Forde, VP of government relations at Midcontinent Communications, which provides 

high-speed internet to primarily rural communities, will advocate for the continuation of ACP 

funding during today’s hearing. Per a copy of his prepared testimony, Forde will argue that “if 

the goal of the post-BEAD world is to have more Americans able to access the extensive job, 

health, educational and entertainment benefits that broadband can offer, Congress should allocate 

funding for the program’s continued support.”

 

— Fate of USF in flux: Today’s hearing will also examine the Universal Service Fund, a 

multibillion-dollar program expanding phone and internet service to rural and underserved communities. That program has faced four lawsuits this year challenging it as an unconstitutional 

tax.

 

Several judges on the 5th Circuit U.S. Court of Appeals expressed some skepticism Tuesday 

about the scope of USF. And although it’s too soon to tell exactly how the suit will play out, the 

judges pressed the FCC on how it oversees the fund’s administrative entity and on the goal of the 

fund. When FCC attorney Jacob Lewis couldn’t answer one judge’s questions, she countered, “if 

you can’t even identify a specific group within FCC that supervises this behemoth, it’s very 

difficult to see how any supervision is actually occurring.”

 

As John recently reported, Congress could fast-track legislation to ensure USF’s continuation, 

but lobbying efforts from large tech and telecom firms, and partisan politics are creating 

roadblocks. Specifically, some Republicans are skeptical of the amount of funding going to the 

USF and whether it’s duplicating efforts of other programs like ACP and BEAD.

 

“Congress needs to address whether we still need the USF and, if so, what it should look like,” 

subcommittee Chair Bob Latta (R-Ohio) will say, per a copy of his prepared opening remarks. 

“This includes addressing what programs the USF should fund, how the USF should be funded, 

and what reforms are needed to ensure the programs are run effectively and without waste, fraud, 

or abuse.”

 

But there is some bipartisan support behind saving it: Sens. Ben Ray Luján (D-N.M.) and John 

Thune (R-S.D.) started the Senate Universal Service Fund Working Group dedicated to 

preserving USF’s future. The group is holding discussions and mulling legislative proposals to 

generate greater bipartisan consensus and is currently reviewing extensive input on the topic 

collected late this summer.

 

And that partnership is now bicameral — lawmakers will announce today that Reps. Latta 

and Doris Matsui (D-Calif.), chair and ranking member of the House E&C tech 

subcommittee, are joining the working group.

 

“From rural broadband deployment to vital programs like Lifeline and E-Rate, the 

Universal Service Fund has been a savior for millions of Americans,” Matsui will say in a 

statement. “We realize that the stakes for getting connectivity right are sky high. That’s 

why I am joining together with this bicameral group to find solutions, strengthen the 

Universal Service Fund and ensure it remains resilient for years to come.”

 

— Eyes on oversight: This reckoning is coming in the middle of a separate flood of broadband 

infrastructure spending spearheaded by other parts of the government, such as the Commerce and 

Treasury departments.

 

Latta told John in an interview last week that oversight for broadband funding — amounting to 

more than $60 billion — “is going to be a big major concern of what we’re doing in committee. 

… Looking at NTIA, FCC, making sure the taxpayers' dollars are being used wisely and we’re 

not getting any type of overlap out there.”

 

E&C lawmakers, meanwhile, are also anxious to advance broadband permitting legislation on 

the chamber floor, which they say will be crucial to expediting the smooth buildout of these 

projects.

 

— Meanwhile at the FCC: Today the FCC is also holding its monthly open meeting, where 

commissioners will hold a vote on a Further Notice of Proposed Rulemaking, which would open 

up a comment period on implementing a 5G fund from USF subsidies. The fund aims to bring 

more 5G broadband service to rural communities. Although a vote approving the action is a 

small step and not an official launch of the program, it is a sign that the fund’s connectivity 

efforts may be expanding.

 

Read the full article here.