FCC Implements $50/Month Broadband Subsidy For Low-Income Households
As required by the Consolidated Appropriations Act, 2021 (“CAA”), on February 25, 2021, the FCC adopted a Report and Order to officially establish the Emergency Broadband Benefit (“EBB”) Program. Since the COVID-19 pandemic has led to a rise in virtual services and learning, access to broadband services has now become essential for most households. With this in mind, the program is designed to provide broadband services to help low-income households in particular stay connected. We have summarized the program and noted some key provisions and next steps for the FCC and potential participating providers. The program is temporary, and will expire when funds have been exhausted or 6 months after the Health and Human Services Secretary declares the end of the nationwide COVID-19 health emergency.
EBB Program Overview
The EBB Program was authorized by Section 904 of the CAA, which was designed to provide affordable broadband services to low-income households on an emergency basis. Congress allocated $3.2 billion to the EBB Program to reimburse participating providers for providing discounts on qualifying internet service offerings to qualifying low-income households. The EBB Program will provide discounts of up to $50 per month ($75 for residents of Tribal lands) to subsidize broadband services for eligible households. Eligible consumers can also receive a one-time discount of up to $100 for a desktop or laptop computer, or tablet (no smartphones) supplied by a participating provider. The EBB benefit is limited to one monthly service discount and one device discount per eligible household. To qualify for the EBB program, households must prove that at least one member of their household meets one of the following criteria:
- qualifies for the FCC’s Lifeline program (including those who are receiving Medicaid or SNAP benefits);
- approved for the free or reduced-price school lunch program (including through the USDA Community Eligibility Provision);
- experienced substantial and documented loss of income since February 29, 2020 and the household had a total income in 2020 below $99,000 for single filers and $198,000 for joint filers;
- received a federal Pell Grant in the current award year; or
- qualifies for a participating provider’s existing low-income or COVID relief program (subject to FCC approval of that provider’s eligibility process).
- a list of states in which the provider plans to participate in the EBB Program;
- a statement that, in each of the listed states, the provider is a “broadband provider” as of December 1, 2020;
- a statement identifying where the provider is an existing ETC;
- a statement identifying where the provider received FCC approval to participate in the EBB Program (this is primarily for providers that are seeking approvals outside of states where they are existing ETCs);
- a statement confirming whether the provider intends to distribute connected devices under the EBB Program; and
- a description and documentation of the Internet service offerings for which the provider plans to seek reimbursement from the EBB Program in each state.
- the jurisdictions in which it plans to participate,
- the service areas in which the provider has the authority, if needed, to operate in each state, and
- a description, supported by documentation, of the established program with which the provider seeks to qualify for automatic admission to the EBB Program.
- the states in which it plans to participate,
- the service areas in which the provider has the authority, if needed, to operate in each state but has not been designated as an ETC, and
- documentation of the provider’s plan to combat waste, fraud, and abuse.