Amy Huffman

NDIA Urges Congress to Create New Broadband Affordability Benefit Program

Background

Following the Supreme Court’s ruling in May that the Universal Service Fund (USF) program is constitutional, Congress renewed its efforts to modernize the program. As background, in 2023, Senators Ben Ray Luján (D-NM) and John Thune (R-SD) established a bipartisan, bicameral working group to evaluate different ways to modernize the USF program and reach an agreement on how to do so. The original working group requested public comments, and NDIA submitted comments at the time. The working group also conducted multiple conversations with various stakeholders over several months before developing a framework for legislation. They stopped short of introducing legislation, however, and the effort stalled during the last Congress.

In June of this year, with a new Congress in place, the working group reconstituted itself under the leadership of Senators Deb Fischer (R-NE) and Ben Ray Luján (D-NM), Chair and Ranking Member of the Telecommunications and Media Subcommittee, respectively. Other members of the working group include Senators Shelley Moore Capito (R-WV), Amy Klobuchar (D-MN), Jerry Moran (R-KS), Gary Peters (D-MI), Dan Sullivan (R-AK), and Jackie Rosen (D-NV). Representative Richard Hudson (R-NC9) and Representative Doris Matsui (D-CA7), the Chair and Ranking Member of the Communications and Technology Subcommittee, respectively, lead the group’s efforts in the House. 

In August, the bipartisan, bicameral USF Working Group again invited public input through a request for comments (RFC) on the future of USF funding structure and programs. NDIA submitted comments to the Congressional working group in September, informed by conversations with NDIA affiliates. You can read the full text of our comments here or see the TLDR version below. 

NDIA’s Main Points to Congress

Our recommendations span a wide range of topics, but primarily focus on

  1. Broadband Affordability – We provided recommendations to Congress on why and how they should modernize USF to make broadband more affordable for low-income households. 
  2. USF Should Support Digital Inclusion Programs – We argued that the modernized USF should support households in subscribing to the internet by supporting digital inclusion activities and programs.
  3. Measuring Progress Towards Digital Equity – We provided recommendations on how the FCC could more effectively measure the progress of the USF programs toward achieving universal service.

Broadband Affordability

Congress should create a new Broadband Affordability Benefit Program funded through USF that includes data, voice, and text services. 

We argued that modern communication requires access to voice, text, and data. Research has repeatedly demonstrated that the cost of a mobile and home broadband subscription is the most significant barrier to households’ ability to get and stay connected. Yet, the current Lifeline program is insufficient to enable low-income households to access voice, text, and data services without interruption. 

As such, NDIA recommended that Congress should strengthen and expand the current Lifeline program to create a new broadband affordability benefit program that meets the modern connectivity needs of low-income households. The new broadband affordability benefit program should not be a direct replica of the Affordable Connectivity Program (ACP) or the Lifeline program, but should incorporate the successful facets of both programs. The program should be more accessible and flexible while preserving integrity and reducing administrative burdens on the FCC and the consumer.

  • Cover Voice, Text, and Data
  • Apply to mobile and/or home broadband services (subscribers can split the benefit if they choose)
  • Be a minimum of $40/month for non-Tribal Households, and $110/month for Tribal Households
  • Apply to all plans ISPs offer
  • Be available to low-income households through a variety of eligibility pathways
  • Provide a simple, user-friendly application process
  • Include Consumer Protections
  • Simplify Eligible Telecommunication Carrier (ETC) requirements for participating ISPs (so more providers participate in the program and guardrails protecting consumers remain)
  • Provide grants for community-based organizations, state agencies, and local governments to support program outreach and enrollment.

We argued that the primary goal of the new broadband affordability benefit should be to address broadband affordability, not broadband adoption. Our reasoning for making this distinction is because of the plethora of research that demonstrates that low-income households are often subscription vulnerable, meaning last month they may have been able to afford a home broadband subscription, but this month they had to cancel the service to be able to afford another high-priority item in their budget. Thus, broadband adoption is not a binary concept, but rather a continuum. Meanwhile, other barriers, such as a lack of access to a device or a provider, also keep households offline, but require separate and complementary interventions to address. As such, Congress should explicitly design the new program to address broadband affordability, ensuring households whose primary barrier to broadband adoption is affordability can get and stay online.

As both mobile and home broadband services are essential for households to participate in modern everyday life fully, and are complementary technologies (i.e. not interchangeable), the new broadband affordability benefit program should enable households to subscribe to mobile and home broadband services, and they should have the choice to split the benefit as they choose.

NDIA suggested  Congress consider two options for determining the benefit dollar amount:  

  1. A sliding scale, or
  2. A fixed dollar amount

Option 1: A sliding scale benefit could meet the individual household’s needs rather than apply a fixed benefit amount to each household’s bill. The benefit amount could be based on a combination of 1) the household’s annual income / the percent of the federal poverty level (FPL) the annual household’s income falls into, 2) household size, and 3) an agreed-upon affordability threshold, such as two percent of household income or a similar threshold. A sliding scale structure would be more efficient, as it would target a larger benefit to very low-income individuals, with a less generous benefit for those not in severe poverty. However, this approach would be more difficult and complex to implement, and in all likelihood, would be more burdensome for the consumer to demonstrate their income and other necessary information to ensure the benefit is calculated correctly. Several other federal benefit programs have implemented a sliding scale structure, including LIHEAP and SNAP. We encouraged Congress to investigate these programs to determine if a similar model is preferable for the new broadband affordability benefit program.

Option 2: A fixed dollar amount benefit, where each household receives the same benefit amount, no matter their income or household size, similar to the current Lifeline program and the previous ACP program. If Congress adopts this model, NDIA recommends that Congress establish a benefit floor of $40/month for non-Tribal households and $110 per month if the subscriber resides on Tribal Lands. 

We also argued that, regardless of the model it adopts, Congress should mandate the FCC to regularly reassess the benefit amount for the new broadband affordability program to ensure it adequately meets modern connectivity requirements. Simply indexing the new benefit to inflation is insufficient for today’s broadband needs.

USF Should Support Digital Opportunity/Inclusion Programs 

Congress should establish a National Digital Opportunity Foundation Funded (in part) by USF

We argued that to advance universal service, we must address all the barriers to digital opportunity—the lack of affordable, robust connectivity, appropriate devices, and digital skills. Doing so requires human intervention, and the work of community-based programs designed to address these barriers can (and does) help their community members overcome them, enabling them to leverage online tools to thrive. 

To accomplish this, we recommend that Congress establish a national Digital Opportunity Foundation, utilizing a percentage of the USF funds to support digital inclusion initiatives nationwide. 

We noted that the foundation could be housed under the FCC or be an independent entity but that an independent entity is preferable because if independent, it would have the ability (and potential mandate) to raise additional funds to minimize the amount of funds required by the USF, be more nimble and able to address challenges that impact the digital divide (like the impacts of AI) in a timely fashion, less responsive to the ever-changing political priorities, and more responsive to the needs of the communities and individuals most impacted by the digital divide. 

We stated that the Foundation should:

  • Provide grants to organizations to operate digital opportunity programs that address one or more of the barriers keeping people offline, including digital skills, AI literacy, cybersecurity, the lack of devices, and the lack of one-on-one support to navigate getting and staying online. 
  • The grants should be multi-year, flexible, and range in size to accommodate the needs of both new and existing programs.
  • The foundation should raise awareness about the digital divide and best practices for closing it, act as a convener for grantees, practitioners, and thought leaders, and operate as an incubator for emerging solutions.

We argued that the foundation should fund:

  • Direct service programs that are designed to close the barriers outlined above, such as digital skills programs, digital navigator programs, device refurbishment and distribution programs, outreach and enrollment efforts for the new Broadband Affordability Benefit Program.
  • Capacity-building programs that provide resources to organizations and communities to train staff and scale programs 
  • Research and evaluation activities to benchmark progress, refine best practices, and advance the field 
  • The development of national resources, such as digital navigator certification standards, a national resource repository, a data tracking system, and a national digital skills framework, equips programs nationwide for more effective service delivery.

Congress Should Design a Solution for Increasing Device Access and Ownership

If Congress establishes a National Digital Opportunity Foundation, it can address the significant gaps in device ownership through the foundation’s grant programs. However, it should still address the device gaps if it does not establish a foundation. NDIA recommended that Congress establish a stand-alone device program, such as the device voucher program introduced by Senator Warnock (D-GA) via the “Devices for Every American Act” in 2021. In the program, Congress should require the Commission to establish minimum standards and a schedule for regularly reevaluating and updating those standards. These standards should ensure that devices purchased through the program are sufficient for distance learning, telehealth, remote work, and other modern uses.

Congress Should Mandate a National Digital Opportunity Plan and Measure Success Against it

A National Digital Opportunity Plan would enable the creation of digital inclusion ecosystems across the country, coordinate federal, state, local, and Tribal strategies to ensure every community can benefit from digital opportunity programs, and measure the effectiveness of USF, FCC, and other federal broadband programs. The plan should outline strategies to ensure every US community has a digital inclusion ecosystem, as research demonstrates that digital inclusion ecosystems enable ongoing, tailored support to community members for addressing current and future digital divides.

In addition to outlining a strategy for ensuring each community has a digital inclusion ecosystem, a National Digital Opportunity Plan should:

  • Strengthen and support local, state, territory, and Tribal digital inclusion ecosystems.
  • Designate a coordinating body to identify and facilitate digital inclusion work across all federal agencies, including USF programs, and propose methods for aligning these efforts.
  • Identify federal programs that could support (through existing funding) digital skills, access to affordable internet service, and access to appropriate devices.
  • Identify the cost savings federal government agencies realize by converting manual services to digital services for digital inclusion programs. 
  • Identify examples and best practices of public-private partnerships across industries and geographies that support local digital inclusion programs.
  • Encourage the federal government to address all barriers to digital equity holistically and comprehensively.

At a minimum, a National Digital Opportunity Plan should include:

  1. A Vision for Digital Opportunity
  2. An analysis of existing federal datasets and survey or qualitative data collected for the plan to provide a timely assessment of the current state of the digital divide across the country, including a better understanding of the barriers that keep people offline, such as:
    1. Access, 
    2. Affordability of the service, 
    3. Devices
    4. Digital skills, 
    5. and other barriers that may inhibit a household from subscribing to and benefiting from the internet. 
  3. Strategies for addressing the barriers and achieving the vision.
  4. Recommendations for coordinating across federal, state, local, and Tribal programs
  5. Baseline data and future metrics will be used to benchmark progress.
  6. A research agenda and evaluation plan.
  7. A sustainability plan to account for continuous change.

The plan can provide the framework for benchmarking and measuring progress toward universal service. We encouraged Congress to require the Commission to develop holistic measures upon which to measure the effectiveness of the USF programs based on the plan.