Affordable Connectivity Program

On December 27, 2020, the Consolidated Appropriations Act, 2021 (Consolidated Appropriations Act) was signed into law. Among other actions intended to provide relief during the pandemic, the Consolidated Appropriations Act established an Emergency Broadband Connectivity Fund of $3.2 billion in the Treasury of the United States for the fiscal year 2021. The Act directed the Federal Communications Commission (FCC or Commission) to use that fund to establish an Emergency Broadband Benefit Program (EBB Program), under which eligible low-income households may receive a discount off the cost of broadband service and certain connected devices during an emergency period relating to the COVID-19 pandemic, and participating providers can receive a reimbursement for such discounts. The Commission voted to adopt the EBB Program rules, and pursuant to statutory requirements, the final order was adopted on February 25, 2021. The EBB Program launched on May 12, 2021. On November 15, 2021, the Infrastructure Investment and Jobs Act (Infrastructure Act) was signed into law. Pursuant to the Infrastructure Act, the Affordable Connectivity Program builds on the EBB Program by using new funding to provide discounted broadband service and connected devices to low-income households. The Infrastructure Act leaves the EBB Program’s basic framework in place, but it does make changes to the benefit amount, rules regarding plan and subscriber eligibility, and providers’ public promotion obligations, among other changes, and appropriates an additional $14.2 billion to implement those changes. The Commission adopted the Affordable Connectivity Program rules on January 14, 2022.

Provider Eligibility: In the Infrastructure Act, a “participating provider” for the Affordable Connectivity Program shall be a broadband service provider that is either designated as an eligible telecommunications carrier (ETC) or seeks approval from the Commission for participation in the Affordable Connectivity Program. ETCs and non-ETCs must establish they provide broadband service to participate in the program. Household Eligibility: Support is available only for one line per household; applicants are eligible if at least one member of the household: Income is at or below 200% of the federal poverty guidelines; Meets the qualifications for participation in the Lifeline program, that is, if they participate in one of the following federal assistance programs: Medicaid, Supplemental Nutrition Assistance Program, Supplemental Security Income, Federal Public Housing Assistance, or Veterans Pension and Survivors Benefit; or one of the following Tribal-specific federal assistance programs: Bureau of Indian Affairs general assistance, Tribally-administered Temporary Assistance for Needy Families, Head Start (only those households meeting its income qualifying standard), or the Food Distribution Program on Indian Reservations; Receives benefits in the current school year under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision, or did so in the school year immediately preceding the application for the Affordable Connectivity Program; participates in the Special Supplemental Nutritional Program for Woman, Infants, and Children (WIC); Has received a Federal Pell Grant under section 401 of the Higher Education Act of 1965 in the current award year; or Meets the eligibility criteria for a participating provider’s existing low-income program, subject to approval by the Commission.

To clarify the statement above, only Subpart A - Acronyms and Definitions, Subpart B - General Provisions, and Subparts C-D (specifically 2 CFR § 200.203 - Requirement to provide public notice of Federal financial assistance programs; 2 CFR § 200.303 Internal controls; and 2 CFR §§ 200.331-333 Subrecipient Monitoring and Management) apply to this program.

Non-ETC providers must certify under penalty of perjury that the information set forth in their application is true, accurate, and complete; they understand and will comply with all statutory and regulatory obligations described within the Order; and all terms and conditions and other requirements applicable to using the National Verifier, National Lifeline Accountability Database (NLAD), Representative Accountability Database (RAD), and other Universal Service Administrative Company (USAC) systems. Eligibility to participate in the program is based on an applicant’s submission of required information and certifications. An applicant’s filing and subsequent approval does not guarantee the applicant will receive Affordable Connectivity Program reimbursement. Each participating provider must file all required forms, information, and certifications with the Commission and Universal Service Administrative Company to receive reimbursement. A non-ETC provider seeking to participate in the Affordable Connectivity Program must file the appropriate application, whether it is eligible for expedited or automatic approval, electronically, whether filing for automated or expedited approval, through the process announced by the FCC's Wireline Competition Bureau per the requirements of the FCC's Order establishing the program (FCC 22-2).

Eligible households will receive a discount off the cost of qualifying broadband service and certain connected devices, and participating providers can receive a reimbursement for such discounts. Participating providers must submit one reimbursement claim for each month they are claiming support within six months. Eligible households may receive a one-time discount of up to $100 for qualifying connected devices.

The Affordable Connectivity Program is a limited duration program with limited funds. Providers enrolled in the EBB Program as of December 31, 2021 were allowed to automatically transition to the Affordable Connectivity Program. Applications for new providers wishing to participate will be accepted on a rolling basis. Eligible households can be enrolled beginning December 31, 2021 and enrollments will be permitted up until USAC announces a freeze in enrollments as described in the Commission’s Affordable Connectivity Program Order. Funding awards will be issued until the budget is exhausted. The FCC’s Wireline Competition Bureau will establish notice guidelines for the wind down of the Affordable Connectivity Program.