November 30, 2023
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1 big thing: Internet subsidy program in jeopardy
Illustration: Eniola Odetunde/Axios
Companies and community organizers that helped 22 million Americans sign up for discounted internet are in limbo because the program's funding is up in the air, Maria reports.
Why it matters: If Congress doesn't renew the Affordable Connectivity Program, notices of termination will go out to customers, and organizers worry fewer people would sign up again if the program were ever reinstated.
- The $30 monthly subsidy has made internet service free for many families with tight budgets.
- The funding uncertainty undermines the trust that organizers say they worked hard to build in communities that tend to be skeptical of the government.
- "People will feel scammed and, some, hopeless. It's really quite senseless to introduce something needed, prove it works, and then snatch it away while the problem it's attempting to solve is still rampant," said Gina Birch, Greater Cleveland Digital Navigators lead.
State of play: ACP funds are expected to run out around April.
- Internet providers are waiting for the FCC to give them guidance on when and how to start notifying customers that the subsidy will be taken away.
- Companies say 90 days is an appropriate amount of notice, but ultimately the FCC is required to decide the wind-down procedure.
- Some providers are pulling back on actively recruiting for ACP, and others never participated because of the short-term nature of the program, according to Competitive Carriers Association President Tim Donovan.
- AT&T and Spectrum are asking customers to pressure their members of Congress to renew the program.
Companies and advocates alike say including ACP funding in a supplemental spending package โ as the White House called for in October โ is the best option.
- If lawmakers wait to tack it onto an omnibus spending package in February, that would cause a scramble because by then customers may have already gotten notices their discount was going to be taken away.
Of note: There's broad, bipartisan support to renew the program by at least $6 billion, but the challenge among lawmakers is how to offset the cost, particularly in the House where there is no appetite to spend more money.
- This month INCOMPAS, Public Knowledge, the United Church of Christ Media Justice, Google Fiber and other groups met with lawmakers to advocate for the program.
- Center for Digital Equity project manager Bruce Clark, who attended some of the meetings, said he didn't leave feeling hopeful: "Even something like this that is seen as successful, generally speaking, is likely a long shot."
- One offset advocates floated that got nods from lawmakers was using spectrum funds, according to Clark. But for that, Congress would need to reauthorize the FCC's authority to hold auctions.
Threat level: More than 800,000 veteran households benefit from the ACP, according to Universal Service Fund data.
- 3.1 million families with a K-12 student receiving free or reduced-price lunches rely on the program.
- 1 million low-income college students use the program.
- 9.3 million subscribers are 50 or older.
What they're saying: "We have come so far. We can't go back," FCC Chair Jessica Rosenworcel said during a House hearing today, adding that the commission projects that 25 million households will be "unplugged."
What's next: Rep. Yvette Clarke said at the FCC oversight hearing that she will introduce ACP renewal legislation before the end of the year.
- Sen. Ben Ray Lujรกn, who is working on a Universal Service Fund revamp, which could ensure long-term ACP funding, told Maria the appropriations process seems like "the path of least resistance right now" and is optimistic the program will be funded in a bipartisan way.
2. Kids' online safety updates
Illustration: Sarah Grillo/Axios
The Senate Judiciary Committee announced that its hearing on online child sexual exploitation has been rescheduled to Jan. 31.
What's happening: Meta's Mark Zuckerberg, X's Linda Yaccarino, TikTok's Shou Zi Chew, Snap's Evan Spiegel and Discord's Jason Citron will testify before lawmakers next year.
- Maria scooped this week that the hearing would be moved to January to enable more tech CEOs to appear.
Yes, but: Some advocates are not satisfied, including members of the Heat Initiative who think Apple should have been included.
- The group plans hold a demonstration on the original day of the hearing, Dec. 6, on the Hill and at the D.C. Apple store to pressure the company to detect child sex abuse material.
Meanwhile, Sen. Richard Blumenthal told Maria yesterday that he's gathering more Senate support for the Kids Online Safety Act and talking to House members who could help pass it in the lower chamber.
What they're saying: "Our strategy has been that we want a strong vote in the Senate that will enable us to move forward with momentum in the House," Blumenthal said.
- Though Blumenthal and others have tossed out the idea of passing kids' online safety bills by unanimous consent, he acknowledged that opponents like Sen. Ron Wyden are unlikely to change their position.
- Rep. Kathy Castor, who has a kids online protection bill of her own, said: "If KOSA passes [in the Senate] by the year's end โ like Leader Schumer said early on โ I would say [in the House], please agree to that in a heartbeat."
- Castor added that it's "entirely frustrating" that Energy and Commerce Committee Republicans have not reintroduced the American Data Privacy and Protection Act, which also includes safeguards for kids: "We're just not getting any word or explanation on why they won't tackle these issues."
Of note: Schumer didn't mention advancing kids' online safety and privacy legislation in the "dear colleague" letter he sent Sunday, unlike the one from September.
3. What we're hearing: TikTok ban efforts creep up
Illustration: Gabriella Turrisi/Axios
Israel-Hamas war disinformation on TikTok is renewing a push to ban the popular app.
What they're saying: Rep. Mike Gallagher told reporters yesterday that his bipartisan Anti-Social CCP Act is the starting point for creating legislation that can clear Energy and Commerce: "I think we have a chance to do that right now."
- "I'm not yet ready to publicly unveil exactly that framework, but we're making progress on that as we head into an election."
- Gallagher said his concern with the election is that so many young people are getting their news from TikTok, including on the war: "That could just wreak total havoc in our democracy."
- Sen. Marco Rubio, who is sponsoring the Anti-Social CCP Act in the Senate, told Axios that he's noted renewed interest in banning the app because of the war. But differences on how to best restrict the app remain, he said, and passing anything this year is highly unlikely.
Separately, Sen. Mark Warner, sponsor of the RESTRICT Act, said "there's been a lot of renewed interest" because of disinformation about the war.
- Warner noted he's supportive of "the notion" of Sen. Maria Cantwell's not-yet-introduced Guard Act as it continues to go through drafting.
4. Catch me up: Spectrum, AI ads and more
Illustration: Tiffany Herring/Axios
๐ก Spectrum strategy input: NTIA wants the public's views on the Biden administration's national spectrum strategy no later than Jan. 2.
๐ค AI regs watch: The California Privacy Protection Agency released draft regulations for how people's data could be used for AI, and said it plans to begin formal rulemaking next year.
๐ณ Michigan's AI-election move: Gov. Gretchen Whitmer is expected to soon sign legislation requiring campaigns to disclose when political ads are made using AI, the AP reports.
๐ AI Insight Forum latest: After yesterday's session focused on copyright, Senate Majority Leader Chuck Schumer said there was consensus that creators' identities' must be protected, potentially through training data transparency.
- Schumer added of the OpenAI drama: "There's a sigh of relief in the industry and probably in the country that Sam [Altman] is back there."
- The next two forums will be on national security issues and "doomsday" AI scenarios, said Sen. Todd Young.
โ๏ธ I'll sue you right back: Meta has sued in the U.S. Court of Appeals to stop the FTC from revising a previous consent agreement to demand it stop collecting revenue on data from people under age 18, Reuters reports.
๐ Tech files high court briefs: CCIA and NetChoice have filed briefs before the Supreme Court arguing why "must carry" content laws from Florida and Texas are unconstitutional.
๐ง NEPA-CHIPS watch: Our Axios Pro Energy Policy colleague Jael Holzman reports that the permitting rider may be the next shoe to drop in NDAA conference talks.
โ Thank you for reading Axios Pro Policy, and thanks to editors Mackenzie Weinger and David Nather and copy editor Brad Bonhall.
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