Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Eniola Odetunde/Axios

The federal government's main program to keep lower income people connected is only serving one-fifth of the people it could help, even during a pandemic that has forced school and work online.

Why it matters: Millions of Americans still lack access to the high-speed internet service that's become vital as people remain stuck at home and reopenings reverse.

How it works: The Lifeline program, administered by the Federal Communications Commission, provides a $9.25 monthly subsidy (more on tribal lands) to companies that provide phone or broadband service to low-income consumers, generally at no out-of-pocket cost to the customer.

  • Yes, but: Less than a fifth of the 38 million households that qualify for the program are actually enrolled. And despite a recent uptick, enrollment remains down sharply from the Obama era.
  • "It's very clear that the program is needed now more than ever," Democratic FCC Commissioner Geoffrey Starks told Axios. "It's a program that is severely underutilized, and it has got to really meet the moment here."

The intrigue: Starks and other critics lay the low participation rate at the feet of FCC Chairman Ajit Pai, a Republican appointed by President Trump in 2017 to lead the commission. They highlight two factors in particular as contributing to anemic enrollment:

  1. Pai rolled back an Obama-era change that let the federal government approve internet service providers to participate in the program nationally, instead leaving that determination up to the states. That means any provider looking to take part in the program has to take it up with every state where they operate.
  2. A database to determine who's eligible for subsidized service envisioned during the Obama administration stumbled out of the gate and isn't fully operational yet. That could make it harder to sign up new participants.

Another problem: The subsidy is too low to cover the cost of broadband, argues Gigi Sohn, who advised former FCC Chairman Tom Wheeler, a Democrat.

  • "$9.25 gets you a cheap mobile phone and 2GB of data, and that’s basically it," Sohn told Axios. "It’s a tiny amount — it’s certainly not enough to do your homework on or telework on."

The other side: Pai has overseen changes and enforcement actions aimed at curbing waste and fraud in Lifeline, which also brought recorded enrollment numbers down.

The FCC has made temporary changes in recent months to the Lifeline program in response to the coronavirus pandemic, an agency spokesperson noted, including:

  • Waiving Lifeline usage requirements and de-enrollment procedures until Aug. 31 to help ensure current subscribers aren't kicked off the program.
  • Waiving a requirement that consumers must provide three consecutive months of income documentation to qualify for the program.

The FCC also is promoting Lifeline awareness by coordinating with agencies that administer programs like SNAP and Medicaid to alert enrollees to Lifeline, the spokesperson said.

  • Starks said the agency should do more to advertise Lifeline and ensure that new enrollees in a program like SNAP are notified they also qualify for Lifeline.

By the numbers: Enrollment has climbed slightly during the pandemic.

  • Although it's still well below the roughly 12.5 million subscribers Lifeline served in 2016, the program went from about 6.7 million subscribers in February to about 7.2 million in May, according to figures from Lifeline compliance firm CGM compiled using disbursement data from the Universal Service Administrative Company, which oversees Lifeline.

Meanwhile, some broadband providers including Comcast offer their own programs for low-income customers.

  • Comcast is also giving new Internet Essentials customers two months of free service as part of its coronavirus response efforts.

What's next: Washington continues to look for ways to better connect economically disadvantaged Americans, including through a massive infrastructure package the Democrat-controlled House passed last week that envisions a federally funded $50 monthly discount on broadband plans for low-income people.

  • Sen. Amy Klobuchar (D-Minn.) introduced a Senate version of the broadband provisions.

The bottom line: Without new legislation that passes both houses and gets the president's signature, only existing programs like Lifeline can help with the affordability gaps that contribute to the digital divide.

  • "Lifeline is more essential than ever for millions of Americans, and we've got to do better by them," said Starks.

Go deeper

FCC: 5G could eventually help cities predict and prevent wildfires

Axios' Erica Pandey, (left) with Jessica Rosenworcel (right), Federal Communications Commissioner. Photo: Axios.

Jessica Rosenworcel, a Federal Communications Commissioner, said Tuesday that she hopes smart cities and 5G could eventually predict and ensure the safety of its residents, even from natural disasters like wildfires.

What she's saying: "Wouldn’t it be fantastic if we knew those kind of things well in advance, if we had a predictive ability that exceeds what we have today because we are looking at patterns at a scale that previously we haven’t been able to do? I think that those things are real and they are not so in the far-off future," she told Axios' Erica Pandey at a virtual event.

Dion Rabouin, author of Markets
6 mins ago - Economy & Business

Stock buybacks are kicking back into high gear

Illustration: Aïda Amer/Axios

It was expected that with the economy improving and company balance sheets already loaded with cash, U.S. firms would slow down their debt issuance in 2021 after setting records in 2020. But just the opposite has happened.

Why it matters: Companies generally issue bonds for one of two reasons — because they're worried about not having enough cash to cover their expenses or because they want to lever up and make risky bets.

Ben Geman, author of Generate
54 mins ago - Energy & Environment

Japan vows deeper emissions cuts ahead of White House summit

Japanese Prime Minister Yoshihide Suga. Photo: Carl Court/Getty Images

Japan on Thursday said it will seek to cut greenhouse gas emissions by 46% below 2013 levels by 2030, per the AP and other outlets.

Why it matters: The country is the world's fifth-largest largest carbon dioxide emitter and a major consumer of coal, oil and natural gas.