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Lawmakers propose $7 billion in new funding for affordable internet program

2024-12-19 15:49:47 Markets

Lawmakers are proposing new funding that could keep a popular internet affordability program and stipend in place for millions of American households through the end of the year. 

A coalition of bipartisan lawmakers including Democratic Sens. Peter Welch of Vermont and Jacky Rosen of Nevada, and GOP Sens. JD Vance of Ohio and  Kevin Cramer of North Dakota, along with Reps. Yvette Clarke of New York and Brian Fitzpatrick of Pennsylvania have introduced a $7 billion bill to  fund the FCC's Affordable Connectivity Program (ACP). The internet stipend includes up to $30 in monthly assistance paid directly to the internet provider for households that qualify. Those on tribal lands who qualify could receive up to $75 per month for internet service. 

CNN was first to report on the legislation. 

The Affordable Connectivity Program Extension Act would offer a lifeline to a program that the FCC said it would need to begin taking steps to wind down this month in a letter from Chairwoman Jessica Rosenworcel addressed to members of Congress earlier this week. On Thursday the FCC released an order saying it would stop sign ups for the ACP beginning Feb. 7. The agency noted internet service providers will start notifying those on the program about its potential end by January 25

"If Congress does not provide additional funding for the ACP in the near future, millions of households will lose the ACP benefit that they use to afford internet service," Chairwoman Rosenworcel wrote. The chairwoman also noted the end of the program would affect some 1,700 internet service providers across the nation. 

The bipartisan and bicameral push for the funding takes place as Congress and the White House rush to fund parts of the government ahead of funding deadlines. Vermont Senator Peter Welch says the internet is no longer a luxury in a statement of support for the program. 

"Access to high-speed internet isn't a luxury anymore, it's a necessity," Sen. Peter Welch said in a statement. That's why it's never been so important to avoid this funding cliff and extend the ACP." 

Vance echoed support for the legislation offering a personal anecdote. 

"This is exactly the type of program my family would have benefited from if I was growing up in Ohio today," Vance said in a statement. "We must ensure low-income families all across Ohio, from our bustling cities to the most rural parts of Appalachia, aren't cut off from the online banking, schooling, and connectivity services they need." 

If approved, the funding would provide much needed government support for a program that could run out of funds in April. The end of the program would mean nearly 23 million households would lose access to the monthly stipend. 

Rosenworcel thanked lawmakers for introducing the legislation.

"Rural, suburban, and urban communities across the country are online today because of the success of the Affordable Connectivity Program," she said l in a statement to CBS News. "Nearly 23 million households are connecting to education, work, health care, and more I'm grateful to Sens. Welch and Vance, and Reps. Clarke and Fitzpatrick for their bipartisan leadership as we seek to maintain the historic progress we've made through this program," she added. 

The legislation has also received a warm welcome from broadband internet advocates. 

"We applaud Representatives Clarke and Fitzpatrick for championing digital equity by introducing legislation to keep over 22 million households connected through the Affordable Connectivity Program," said Angela Siefer, the executive director of the National Digital Inclusion Alliance. 

The bill calls for $1 billion more than what the White House requested. A congressional aide who spoke to CBS News described the program as popular among Americans alluding to the additional need for funding that may arise with increased signups. The aide said conversations to gather additional support for the bill are ongoing as the debate over funding the government largely continues to focus over immigration. 

"This is a program that we can find that common ground on and we are having those conversations on both sides of the aisle and across the aisle," the aide said. 

Willie James Inman

Willie James Inman is a White House reporter for CBS News based in Washington, D.C.

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