The broadband industry seems to have quietly retreated from its previous advocacy for reviving a subsidy aimed at helping low-income households access the internet. The Lifeline program, which was established in 1985 under the Reagan administration, was designed to assist low-income households in gaining access to vital communication services by providing a subsidy of $9.25 per month, given directly to service providers.
Under FCC Chairman Ajit Pai’s watch, the program underwent significant reforms aimed at reducing the program’s acknowledged problems with fraud and inefficiency. These changes resulted in a decrease in participating households from 12.5 million in 2016 to approximately 8 million by 2021.
While many broadband industry leaders initially pushed back against these changes, arguing they would reduce the accessibility of their services to lower-income households, it appears these efforts have since subsided. Reports suggest that these companies have stopped publicly advocating for the return of the Lifeline program or have outright opposed its revival.
Without support from the broadband industry, any potential congressional efforts to reinstate the Lifeline program may face significant obstacles. Policymakers would likely need to address the program’s history of mismanagement and potential for fraud while also ensuring it can provide real benefits to low-income households. This comprehensive solution has yet to emerge, making the program’s future uncertain.
However, ongoing discussions about ways to bridge the digital divide, such as the infrastructure proposal put forward by the Biden administration, might explore alternative policies and potential recipes for Lifeline’s revival, but
