The Year States Stepped Up for Broadband Affordability

In 2024, the fight to close the digital divide zeroed in on a critical issue: the affordability of broadband.

This year, all 50 U.S. states identified the cost of broadband service as the primary barrier to achieving equitable access to high-speed internet, a finding reflected in states’ digital equity plans developed for the $42.5 billion Broadband Equity, Access, and Deployment program.

States had built BEAD plans on the assumption that the $14.2 billion Affordable Connectivity Program would continue. The federal subsidy launched in December 2021 provided eligible households with a monthly discount of $30 on their internet bills and $75 for households on Tribal lands. 

When the ACP ran out of funding in May 2024, states and cities stepped up with innovative laws and local initiatives to sustain connections for the one-in-six Americans (or 23 million U.S. households) who had relied on the ACP to stay online.

The ACP didn’t go down without a fight

Efforts to extend funding for the largest broadband affordability program in U.S. history dominated the first half of 2024.

In January, Sen. Peter Welch, D-Vt., introduced the bipartisan Affordable Connectivity Program Extension Act, which sought to allocate an additional $7 billion to sustain the monthly internet subsidy through the end of 2024. More than 450 civil rights, consumer, and industry groups endorsed the bill.

Rep. Yvette Clarke, D-N.Y., in April sought to force a House floor vote on Welch’s bill by filing a discharge petition, but the measure failed to advance to the floor..

By May, lawmakers scrambled to attach ACP funding to other legislative vehicles, including the Federal Aviation Administration reauthorization package, but those efforts ultimately fell short.

Sen. Maria Cantwell, D-Wash., attempted to secure short-term ACP extensions to the Spectrum and National Security Act,  a bill introduced in April that proposed $7 billion for ACP using proceeds from spectrum auctions. However, the Senate Commerce Committee delayed its markup four different times, until well after the ACP’s funding had expired in May.

As the ACP waned, supporters rallied in the nation’s capitol to emphasize its importance for low-income families. With 77 percent of participants reporting to the FCC that they expected to lose or face disruptions to their connectivity, advocates highlighted the millions of Americans at risk of losing internet access.

States step up with affordability solutions

As federal headbutting left millions at risk, state legislatures began crafting independent broadband affordability solutions.

The most notable effort came from New York, where the Affordable Broadband Act became the nation’s first legal mandate requiring ISPs to offer low-cost broadband offerings statewide.

After the law was barred from going into effect for years due to litigation from industry groups, the Supreme Court allowed the law to stand in December 2024, marking a turning point in state-led affordability efforts.

Under the New York state law, all ISPs operating in the state must offer eligible residents internet packages with download speeds of 25 Megabits per second (Mbps) at $15 per month, or 200 Mbps internet services for $20 per month. 

With the Supreme Court’s decision, New York Attorney General Letitia James was set to begin enforcing the law, including penalties for noncompliance, on January 15, 2025.

Industry groups have pushed back on the law, warning that other states could follow New York’s lead.

“If the ABA were to take effect, it would be a watershed moment,” the New York State Telecommunications Association wrote in an October filing to the Supreme Court. “Many state legislators and bureaucrats would surely then follow New York’s lead.”

Beyond New York's landmark law finally going into effect, states across the country began exploring broader strategies to tackle broadband affordability. 

According to Pew Charitable Trusts, three key strategies emerged among state lawmakers in 2024 to address broadband affordability gaps:

1. Modifying State Lifeline Programs: States like California and Oregon began exploring reforms to their state-operated Lifeline programs, traditionally focused on mobile phone service, to supplement the $9.25 monthly discount offered by the federal program. These modifications aim to expand Lifeline's reach by including standalone and bundled broadband internet services.
2. State-Level “ACP” Subsidies: Legislators in states such as New York, North Carolina, and Pennsylvania  introduced bills to create state-level broadband subsidies to replace or mirror the ACP, but many stalled in legislatures.
3. BEAD-Like Low-Cost Options: Some states explored requiring providers under state contracts to offer affordable plans, similar to BEAD’s low-cost provision. In Connecticut, S.B. 3 would have required state agencies to procure services only from providers offering plans costing $40 or less. While the bill passed the Senate, it stalled in the House.

Cities addressing affordability gaps

Municipalities have played a crucial role in ensuring affordability, by leveraging locally controlled networks, as well as Covid relief funding, to fill gaps left by state and federal programs.

In Atlanta, American Rescue Plan funds were leveraged in 2024 to provide temporary relief for residents struggling to pay for internet services after the ACP’s expiration. Mayor Andre Dickens (D) in August highlighted affordability as the city's main challenge, announcing a $10 monthly internet plan for seniors and $18 services for public housing residents.

In Cambridge, Mass., the city used ARPA funds to launch the Digital Navigator Pilot Program in February to connect low-income residents with affordable internet. Digital navigators assist residents with enrolling in discounted services and acquiring low-cost devices.

Cities building municipal networks hold a strategic advantage in ensuring affordable access for their communities. In Boulder, Colorado, the city secured a deal with ALLO Fiber in November to provide $30 monthly discounts for low-income households and free Gigabit internet for 25 nonprofits starting in 2028. This agreement was part of a broader $9 billion partnership with ALLO to lease and operate a portion of the city’s fiber network.

Private providers commit to affordable broadband

On May 31, the final day that households received benefits from the ACP, the Biden White House announced over a dozen private broadband providers voluntarily committed to offer plans at $30 or less to low-income households through the end of 2024. 

Some of these providers, including altafiber and Astound Broadband have told Broadband Breakfast they will continue to uphold their affordability commitments into 2025.

These efforts are just a few of countless initiatives launched across the country in 2024 to make broadband more affordable and ensure millions of Americans remain connected.

Will affordable broadband remain a priority under Trump?

As states, cities, and private providers stepped up to address broadband affordability in 2024, whether the issue will remain a priority under the next presidential administration remains to be seen. 

Vice President-elect Sen. JD Vance, R-Ohio, was a vocal supporter of the ACP and one of few Republicans to champion broadband affordability. 

Earlier this year, Vance joined a bipartisan coalition to push for the ACP Extension Act, emphasizing its importance for low-income families, including the 1.1 million Ohio households who relied on the program.

“This is exactly the type of program my family would have benefited from if I was growing up in Ohio today,” Vance said in January.

Vance’s advocacy has sparked cautious optimism among broadband experts. As Blair Levin, a leading broadband policy analyst for New Street Research, noted, “If he becomes a big advocate, maybe that will help move the administration.”

Peter Christiansen, a telecom policy expert, noted that funding broadband access is “not a partisan issue” and emphasized its practical and political appeal. With economic concerns topping the agenda for Trump voters, Christiansen argued that programs like the ACP could be “an easy political win” for the new administration.

However, Levin and others remain skeptical about the long-term political appetite for broadband affordability.

“You have an administration coming in that, at least as far as Donald Trump is concerned, has never articulated a need to connect low-income people,” Levin said in December.

Meanwhile, voluntary programs by cable and telecom providers have helped fill the gap left by the ACP. According to original research by Levin, 93% of ACP participants receiving wireline service were now on a low-income program being voluntarily offered by cable or telco providers.

As Levin observed, this widespread participation “takes a lot of the pressure off Congress to fund the program.”