D.C. Memo: Rep. Latta Working on USF Reform with ACP Money Included

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USF/ACP: A senior House Republican said Tuesday he was "actively working" to overhaul the $8.1 billion Universal Service Fund in a way that could include new funding for the Affordable Connectivity Program (ACP). "I am actively working on a solution with my colleagues in the bipartisan, bicameral USF Working Group, along with the ranking member of this subcommittee," said Rep. Bob Latta (R-Oh.), who is chairman of the House Subcommittee on Communications and Technology. "Time is running short this Congress, but I hope we can reach an agreement on this important issue." The USF issue has risen in importance after the U.S. Court of Appeals for the Fifth Circuit in July said the USF's current funding mechanism was unconstitutional — a decision that FCC Chairwoman Jessica Rosenworcel Monday called "extreme." At a hearing Tuesday on the BEAD program, Latta said he would not support injecting new money into the ACP -- which ran out of funding on May 31 — without programmatic reform. "I am committed to finding a long-term solution to address broadband affordability," Latta said. "However, ACP must be reformed to ensure that it is targeted towards those who truly need the subsidy to pay for broadband, and it must have a sustainable funding source." At its peak, the ACP reached 23 million households with $30 monthly Internet discounts, but just 22% of enrollees were first-time Internet users -- for Republicans, an indication that the program's funding structure was too broad.