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Access to affordable, reliable, high-speed Internet is a cornerstone of the U.S. economy and essential for economic growth. This is also the view of both parties-Congress has found that "[a]ccess to affordable, reliable, high-speed broadband is essential for full participation in modern life in the United States." However, nearly a quarter of American households still do not have access to high-speed Internet at home due to high costs and, in some communities, a lack of necessary infrastructure. Communities of color, Native American communities, rural communities, and low-income households in particular are disproportionately disconnected. That's why, as part of his Internet for All initiative, President Biden has committed to connect every household in America by 2030 and to allocate more than $80 billion in federal resources to expand access to affordable, reliable, high-speed Internet across the country.
Fundamental to the success of the President's plan is the Affordable Connectivity Program (ACP), which provides eligible households with a discount of up to $30 per month (or $75 per month for households on eligible tribal lands) off their Internet bill. The ACP program is the largest and most successful Internet affordability program in our country's history, with more than 23 million households - one in six households - participating. Because the Administration has worked with Internet providers to offer high-speed Internet plans that are fully paid for by the Affordable Connectivity Program, most of these 23 million households have received high-speed Internet for free.
Without additional funding from Congress, the Affordable Connections program expires today. This expiration would raise the cost of the Internet for the more than 23 million households that participate in the program, with significant economic consequences. These 23 million include nearly 11.5 million military families, 4 million seniors, 5.75 million African American households, 5.75 million Latino households, and 320,000 households on tribal lands. Many families would lose the Internet altogether - a recent FCC survey found that more than three-quarters of respondents would lose their service by losing the ACP benefit. Depriving these families of this funding would deprive them of money they could spend on other necessities such as food, education, and health care. In some states, such as Kentucky, Ohio, and Nevada, one in four households is enrolled in the program.
That's why President Biden has been calling on Congress since last October to extend the benefit through 2024. Democratic House and Senate members have joined him in this effort. Republican leaders in Congress, however, have not acted. President Biden is again calling on Republicans in Congress to join their Democratic colleagues in supporting an extension of funding for the Affordable Connections program so that tens of millions of Americans can continue to have access to this vital benefit.
This blog describes the economic benefits of access to affordable high-speed internet and the implications of the ACP ending, with a particular focus on the role of internet access in supporting small business start-ups and economic growth.
Heather Boushey, Chief Economist, Investing in America Cabinet
whitehouse.gov/gnews.cz-JaV_07
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