ACP More than Paid for Itself: Study

WASHINGTON, Feb. 19, 2025—According to a new Brattle Group study, the Affordable Connectivity Program delivered more than it cost, generating $29 billion in healthcare cost savings, increasing students’ future earnings, and expanding labor force participation.

The program, which connected 23 million low-income households to the Internet, ended in May 2024 when funding dried up despite bipartisan support for its continuation.

Reinstating ACP would yield a substantial return on investment, according to the Brattle Group.

“Our analysis found that the annual return on investment for the ACP exceeds the expense of the program. The continuation of the ACP is not just a fiscal necessity to save taxpayer dollars but a strategic investment in America’s economic competitiveness,” said Paroma Sanyal, one of the study’s three authors and a Principal at the consulting firm.

ACP was especially beneficial in the healthcare industry, facilitating an additional 12.1 million telehealth visits annually. According to the firm’s analysis, these visits saved substantial amounts of money for both the patient and the provider.

“A switch from one physical visit to telehealth for one single Medicaid recipient could save enough money to fund 3.5 years of ACP support for one Medicaid recipient,” a summary of the study said.

The program also improved female participation in the labor force. Reviving ACP would further increase this participation by 2.25 percent and raise median annual wages for female workers by $106, the report found. Median annual wages for male workers would also increase, adding $96.

Last year, nearly 400 organizations, including minority advocacy groups, library associations, Big Tech and broadband companies, and local governments, supported a proposed extension of the program led by Sen. Peter Welch, D-Vt., and co-sponsored by then Sen. JD Vance, R-Ohio.