In a 3-2 vote Thursday, the Federal Communications Commission expanded affordable broadband to millions of America's low-income families. By including broadband services in Lifeline, a Reagan-era program that provides telephone service to the poor, 40 million people on public assistance can use an existing benefit that provides a $9.25 credit for phone service to help them get online. The FCC estimates that more than 13 million of them have no access now.
At a time when many Americans rely on the Internet to apply for jobs, take educational courses or look up information online, a lack of affordable service prevents the country's poorest from accessing the same opportunities as their wealthier peers, FCC Chairman Tom Wheeler has said. Thursday's measure to update the subsidy program, known as Lifeline, aims to narrow that gap.
"It's a simple concept: To provide assistance so that low-income Americans can access the dominant communications network of the day," Wheeler said.
The move does not mean poor Americans will pay $9.25 a month for Internet. Rather, the program works by providing a $9.25-a-month credit that can then be applied toward broadband, voice service, or a mix of both.
Republicans on the commission pushed hard, and nearly swayed Democratic commissioner Mignon Clyburn to their side, for a smaller budget for the credits—with cap of $2.0 versus $2.25 billion—and faster required download speeds. That all sounds great—faster internet—but the increase in speeds would have made for an increase in consumer costs, keeping connectivity out of reach for many since they would have to pay out-of-pocket for costs above $9.25/month.
The cap to the program is, of course, the sticking point for Republicans. The $2.25 billion budget is a "soft" limit, allowing the budget to be exceeded if demand required it. House Republicans hate that, and so immediately announced their intention to pass legislation enforcing a legislative cap on the spending along with measures to "protect ratepayers and eliminate waste fraud and abuse." Which ultimately means keeping this benefit out of the hands of as many people as possible.