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