[Federal Register Volume 89, Number 24 (Monday, February 5, 2024)]
[Rules and Regulations]
[Pages 7627-7632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02093]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 54

[WC Docket No. 21-450; DA 24-23; FRS 200279]


Affordable Connectivity Program

AGENCY: Federal Communications Commission.

ACTION: Final action.

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SUMMARY: In this document, due to a lack of additional funding from 
Congress, the Wireline Competition Bureau (Bureau) of the Federal 
Communications Commission (Commission) issued an Order laying out wind-
down procedures for the Affordable Connectivity Program (ACP), 
important dates, and the impacts on consumers and providers. These 
procedures include the process for notifying enrolled ACP households 
about the impact of program termination on their broadband service and 
bills and the freezing of new enrollments. The Bureau also offers 
guidance to providers regarding advertising, awareness, and outreach 
requirements, timing of claims submissions, and participation during a 
possible partially funded month of ACP.

DATES: The wind-down procedures and guidance for the Affordable 
Connectivity Program were effective beginning January 11, 2024. The 
requirements of 47 CFR 54.1804(b) are waived beginning February 8, 
2024, and will remain in effect for the duration of the enrollment 
freeze.

FOR FURTHER INFORMATION CONTACT: Benjamin Nashed, Wireline Competition 
Bureau, at [email protected] or 202-418-7400 or TTY: 202-418-
0484. To request materials in accessible formats for people with 
disabilities (braille, large print, electronic files, audio format), 
send an email to [email protected] or call the Consumer & Governmental 
Affairs Bureau at (202) 418-0530 (voice), (202) 418-0432 (TTY).

SUPPLEMENTARY INFORMATION: This is a synopsis of the Bureau's 
Affordable Connectivity Program Wind-Down Order (Order) in WC Docket 
No. 21-450; DA 24-23, adopted January 11, 2024, and released January 
11, 2024. The full text of this document is available for public 
inspection during regular business hours at Commission's headquarters 
at 45 L Street NE, Washington, DC 20554 or at the following internet 
address: https://docs.fcc.gov/public/attachments/DA-24-23A1.pdf.

I. Introduction

    1. In the Order, and consistent with the authority delegated by the 
Commission, the Bureau announces requirements and guidance for the 
wind-down of the Affordable Connectivity Program (ACP). The Bureau 
currently projects that the last month for which the ACP can fully 
reimburse providers for the ACP benefits provided to enrolled 
households is April 2024. Should Congress not appropriate additional 
money, the existing funds will be exhausted, the Commission will have 
to end the ACP, and providers will stop providing discounts to enrolled 
households. The Commission nonetheless remains dedicated to providing 
ACP households an orderly transition out of the program and, more 
importantly, to keeping as many ACP households as possible connected to 
broadband service after the end of the program. To prepare low-income 
households and broadband providers, as well as the organizations that 
help support eligible households' enrollment, and as required by the 
Commission's delegation to the Bureau in the ACP Order (FCC 22-2), 87 
FR 8346, February 14, 2022, the Bureau announces ACP wind-down 
procedures. These procedures include the process for notifying enrolled 
ACP households about the impact of program termination on their 
broadband service and bills and the freezing of new enrollments in the 
program. The Order also offers guidance to providers regarding 
advertising, awareness, and outreach requirements; the timing of claims 
submissions; and participation during a possible partially funded month 
of ACP. The Bureau also encourages providers to help ACP households 
transition to providers' own low-income internet offerings.
    2. Congress provided $14.2 billion in funding for the ACP and that 
funding has been drawn down each month as providers have claimed 
reimbursement for benefits passed through to households. The ACP, which 
was launched two years ago, currently delivers discounted internet 
service to more than 22 million low-income households, benefiting both 
rural and urban households alike. Despite news of the program's 
projected end, the ACP remains as popular as ever as more households 
continue to enroll in the program each month. Moreover, the ACP is 
embraced by subscribers of all ages, with nearly half of subscribers 
over the age of 50.
    3. The ACP provides eligible households with a monthly discount on 
broadband service of up to $30 per month and up to $75 per month for 
households on qualifying Tribal lands. Eligible households can also 
receive a one-time discount of up to $100 to purchase a laptop, desktop 
computer, or tablet from participating providers, if the household 
contributes more than $10 and less than $50 toward the purchase price. 
Should the ACP not receive additional funding, the Commission will have 
to end the program and enrolled households will no longer receive the 
ACP discount after the end of the program.

II. Discussion

    4. Preparing Consumers for the End of the ACP--Timing of Bureau 
Announcement of Last Fully Funded Month of Program. The Bureau will 
announce the upcoming end of the ACP approximately 60 days prior to the 
end of the last fully funded month of the program. Thus, based on 
current projections that the last fully funded month of the ACP is 
April 2024, the Bureau anticipates that the announcement will occur in 
late

[[Page 7628]]

February 2024, but this timing may adjust based on activity in the 
program, particularly as a result of the freeze in enrollments. This 
announcement will trigger certain required communication to households 
receiving ACP-supported service clearly explaining the impact of the 
end of the benefit on their broadband bills so that households can make 
an informed choice about the broadband service they receive to stay 
connected. However, the Bureau requires providers to begin informing 
households about the upcoming end of the ACP benefit prior to the 
announcement.
    5. Provider Notices to ACP Households Regarding End of Program and 
Continuation of Service. In the ACP Order, the Commission found that, 
as with the Emergency Broadband Benefit Program (EBB Program), 
``requiring providers to obtain an affirmative opt-in from households 
before they [could] be charged an amount higher than they would pay 
under the full reimbursement amount was necessary to `guard against 
unexpected charges' '' if the ACP were to end. The Commission also 
found that ``an affirmative opt-in following appropriate consumer 
notice is generally a good measure for avoiding consumer bill shock and 
ensuring the household is informed.''
    6. Currently, Commission rules protect ACP households from bill 
shock in two ways. First, prior to enrolling a consumer in the ACP, 
participating providers are required to obtain affirmative consumer 
consent, either orally or in writing, that acknowledges that, after 
having reviewed the required disclosures about the ACP, the household 
consents to enroll with the provider. One of these required disclosures 
is that the household will be subject to the provider's undiscounted 
rates and general terms and conditions if the ACP ends. Second, the 
Commission requires providers to obtain a household's opt-in, either 
orally or in writing, to continue providing the broadband service to 
the household after the end of the ACP and to charge a higher rate than 
the household would pay if it were receiving the full discount 
permitted under ACP rules.
    7. Consistent with the direction from the Commission to the Bureau 
to establish specific timeframes for consumer opt-ins and the 
appropriate consumer notice, the notice requirements are intended to 
ensure that enrolled households learn from their provider about the 
impact that the end of the ACP will have on the household's broadband 
bill. The Bureau does not prescribe a specific format or wording for 
these consumer notices but, to ensure that the notices meaningfully 
inform consumers about the impact of the end of the ACP on their 
broadband bills, certain key pieces of information must be included in 
the notices.
    8. Timing and Content of Provider Notices. To ensure that ACP 
households have multiple opportunities to receive information regarding 
the end of the ACP and alternative broadband service plans, including 
providers' low-income internet programs, and consistent with the goal 
of ensuring ACP households remain connected, providers shall send at 
least three notices related to the end of the ACP to their ACP 
households. The first required notice shall be sent as soon as 
practicable, but no later than 14 days after January 11, 2024, the 
release of the Order, and shall generally advise ACP households about 
the possibility of program termination and the potential impact on 
their broadband service and bills. After the Bureau issues an 
announcement of the end of the last fully funded month of the ACP, 
providers shall send the second and third required notices to their ACP 
households notifying those households about the end of the program. The 
second required notice shall be sent as soon as practicable, but no 
later than 15 days after the last fully funded month of the ACP is 
announced by the Bureau. The third required notice shall coincide with 
the last bill or billing cycle in which the full ACP benefit is 
applied. The second and third required notices shall indicate that the 
ACP is ending and shall include (1) the date of the last bill on which 
the full ACP benefit will be applied and (2) the amount that the 
household will be billed for the service once the full ACP benefit is 
no longer available and/or that the household will be subject to the 
provider's undiscounted rates and general terms and conditions after 
the end of the ACP. The second and third notices shall also remind ACP 
households of their ability to change their service and/or to opt out 
of continuing their service at the end of the ACP. Providers are 
strongly encouraged to include in these notices information on their 
lower cost offerings and low-income programs or a phone number or link 
to a website where ACP households may obtain such information. 
Providers are not limited to sending only three notices to their ACP 
households and are encouraged to correspond more frequently with their 
ACP households should the provider believe that such additional 
outreach is necessary or beneficial.
    9. Delivery of Provider Notices. The required provider notices 
shall be sent to ACP households in writing, in a manner that is 
accessible to persons with disabilities. The Bureau does not prescribe 
a specific format or wording for these consumer notices. However, the 
Bureau encourages providers to send these notices in a format (e.g., 
email, text message, or paper mail) that is consistent with any 
consumer expressed preferences for receiving notices and other 
communications and using the same email, phone number, or mailing 
address to which bills or other monthly communications are sent. 
Providers are also encouraged to offer these notices in households' 
preferred language.
    10. Announcements and Notices from the Commission and USAC. Like 
providers, the Commission and Universal Service Administrative Company 
(USAC) have a responsibility to help enrolled households become aware 
of the impact of the end of the ACP. To that end, the Bureau has been 
coordinating with the Consumer and Governmental Affairs Bureau (CGB) to 
identify necessary changes to consumer-facing Commission websites and 
materials to effectively communicate end-of-program information upon 
announcement of wind-down procedures and the end of the ACP. USAC, at 
the Bureau's direction, has also been preparing updates to USAC 
websites and materials, including Getinternet.gov, as needed. USAC also 
played a critical role in communicating program information directly to 
enrolled households in the past, such as during the transition from the 
EBB Program to ACP in early 2022. Accordingly, the Bureau and USAC have 
prepared and are ready to implement a communications plan for notifying 
enrolled households directly of the end of ACP, including multiple 
notices from USAC to ACP households.
    11. Subscriber Opt-In. As with the transition from the EBB Program 
to the ACP, the Commission's approach to subscriber opt-in balances the 
goals of ensuring households can continue accessing the broadband 
service they need for work, school, healthcare, and more and of 
minimizing potential bill shock. Consistent with the requirement of 
affirmative opt-in in the ACP Order, the elements for establishing a 
household's affirmative opt-in to continuing to receive broadband 
service after the end of the ACP.
    12. For purposes of the unique circumstances of the wind-down of 
the ACP and pursuant to the ACP Order, the Bureau finds that there are 
two elements to establishing that a household has affirmatively opted-
in to continue receiving broadband service after the end of the ACP. 
The first element is established by the household's

[[Page 7629]]

acknowledgment of having reviewed the required disclosures, which 
include a statement that the household will be subject to the 
provider's undiscounted rates and general terms and conditions if the 
program ends, when enrolling in the EBB Program or the ACP. The second 
element is establishing the household's willingness and ability to pay 
for broadband service. Households are considered to have demonstrated a 
willingness and ability to pay for broadband after the end of the ACP 
if they (1) have informed their provider, either orally or in writing, 
that the provider may continue providing broadband service to the 
household after the end of the ACP and to charge a higher rate than the 
household would pay if it were receiving the full discount permitted 
under ACP rules; (2) were existing paying internet service customers 
with their current broadband provider at the time the household 
enrolled in the EBB Program or the ACP; or (3) currently pay a fee for 
their ACP-supported broadband service.
    13. This approach for households that have demonstrated a 
willingness and ability to pay (i.e., that (1) already informed the 
provider they would continue at a higher rate; (2) were existing paying 
customers with the current provider before the EBB Program or the ACP; 
or (3) currently pay a fee for their ACP-supported service) is 
consistent with the approach to affirmative opt-in that the Commission 
took in the ACP Order when transitioning households from the EBB 
Program's $50 non-Tribal monthly benefit to the ACP's smaller $30 non-
Tribal monthly benefit. The EBB Program Order (FCC 21-29), 86 FR 19532, 
April 13, 2021, had required providers to ``obtain an affirmative opt-
in from households . . . before they can be charged an amount higher 
than they would pay under the full EBB Program reimbursement amount.'' 
However, the ACP Order deemed affirmative opt-in to include ``EBB 
households that (1) were existing paying internet service customers 
with the broadband provider when the household enrolled in the EBB 
Program with that provider; (2) previously consented to the provider's 
general terms and conditions if they continued to receive service at 
the end of the EBB Program; or (3) currently pay a fee for their 
supported internet service.'' As the ACP Order explained, ``[t]his 
category of households has demonstrated to their current provider a 
willingness and ability to pay for internet service; therefore, the 
Bureau finds that there is little risk of unexpected financial harm 
even if their bill may potentially increase up to $20.'' Interpreting 
the entirety of the ACP Order, the Commission's statements express a 
preference for a flexible approach to affirmative opt-in and provides 
the Bureau with flexibility in implementing it.
    14. In addition, this approach reduces the risk of subjecting a 
large percentage of ACP households to service disruption and avoids 
increasing administrative burdens on service providers and households. 
The Bureau believes this approach will help guard against unintended 
disconnections from broadband service for households that have 
demonstrated a willingness to pay for broadband without the ACP 
benefit, reduce consumer confusion and frustration, and mitigate bill 
shock. In light of their demonstrated willingness and ability to pay 
for broadband service and the required provider notifications to ACP 
households regarding the end of the program--which must inform 
households of their ability to change their service and/or to opt out 
of continuing service at the end of the ACP, the risk of unexpected 
financial harm for these households is low as compared to the risk of 
harm to these households due to disconnection for failure to opt-in to 
receive undiscounted service. For example, requiring a household that 
was paying for non-discounted broadband service prior to enrollment in 
the ACP to submit additional consent to retain that broadband service 
with the provider after the end of the ACP could result in a 
disconnection of broadband service should the household fail to timely 
consent. The unwanted loss of broadband service could not only lead to 
consumer confusion for such households, but could deprive those 
households of the broadband connections they were relying on for needs 
related to work, school, healthcare, and connections with governmental 
services. Losing such access could, in turn, result in loss of access 
to those services and employment, as the household spends the time to 
restore service.
    15. Consistent with the ACP Order's requirement of affirmative opt-
in, providers must collect an opt-in from households that have not 
established affirmative opt-in as prior to charging them a higher rate 
for that broadband service than the household was paying when the ACP 
benefit was applied. For these households, there may be a stronger risk 
of potential bill shock were they to receive a bill for undiscounted 
broadband service. This opt-in for this category of ACP households is 
warranted to ensure ACP households are adequately informed about their 
options and to protect households from bill shock. The opt-in must be 
collected either orally or in writing and providers may seek such opt-
in from households at any time before increasing the household's bill 
due to the end of the ACP, including before the Bureau announces the 
end of the last fully funded month of the program.
    16. Ensuring ACP Households Remain Connected. The ACP has made 
tremendous progress in bridging the digital divide by helping millions 
of low-income households for whom the cost of internet service has been 
a barrier to get or stay online. That progress would not be possible 
without the many participating providers serving ACP households. 
Unfortunately, losing the ACP benefit puts these ACP households at risk 
of losing their internet service altogether. Nevertheless, the Bureau 
is confident that participating providers will also play a crucial role 
in fulfilling an important goal of the wind-down procedures laid out in 
the Order: ensuring that ACP households remain connected at the end of 
the program. Some participating providers currently make low-income 
internet programs available to their households that can play a 
critical role in keeping ACP households connected. Consistent with this 
goal of ensuring that ACP households remain connected even after the 
end of the ACP, providers who already offer low-income internet 
programs are encouraged to help interested ACP households not already 
participating in these programs to transition to these programs, and 
providers that do not currently offer low-income internet programs are 
encouraged to develop such programs.
    17. Enrollment Freeze and Its Impact on ACP Outreach--Enrollment 
Freeze. The Bureau will freeze new enrollments into the ACP beginning 
on February 8, 2024. Accordingly, enrollments into the ACP will be 
permitted until February 7, 2024, at 11:59 p.m. EST. The Bureau finds 
that this freeze will help to more accurately project funding 
exhaustion by increasing certainty in program commitments. For example, 
an enrollment freeze mitigates the risk that a spike in enrollments or 
device claims could hasten depletion of remaining ACP funds, preventing 
the Commission from fully funding benefits through April 2024 as 
currently projected. If funding were to run out earlier than projected, 
then low-income households enrolled in the ACP might lose their 
benefits earlier than anticipated, and before being given adequate time 
to learn of the program's end and make alternative arrangements for 
broadband

[[Page 7630]]

service without the ACP discount. The Bureau finds that freezing 
enrollments will help reduce the risk of the last fully funded month 
shifting earlier, thus permitting providers and USAC adequate time to 
notify consumers about the impact on their broadband bills and services 
should the ACP not receive more funding. Moreover, to more smoothly 
administer the end of the program, providers and households must have 
confidence that the ACP can support ACP benefits through the forecasted 
end date.
    18. At the Bureau's direction, USAC has developed and is ready to 
implement procedures for this freeze on new enrollments, including 
changes necessary to the National Lifeline Accountability Database 
(NLAD) and provider processes, and to publish information on its 
websites announcing the upcoming freeze in new enrollments. Any 
existing ACP eligibility determinations and enrollments must be 
completed by the time enrollments are to be frozen, and no future 
eligibility determinations or enrollments will be made by USAC or 
providers unless directed by the Bureau. The Bureau further directs 
USAC to remove paper applications and links to the National Verifier 
ACP application on its websites at the time of the enrollment freeze. 
The Bureau recognizes that the freeze in enrollments will require 
service providers to adjust their own processes, including those 
relating to customer support and onboarding new ACP households. To ease 
provider administration of the wind-down of ACP, the Bureau does not 
require providers to perform transfer-in transactions for enrolled ACP 
households seeking to transfer their benefit, and instead allows 
providers to choose whether to accept transfers after the ACP 
enrollment freeze. For those that wish to continue to accept new ACP 
households via benefit transfers when enrollments into the program are 
frozen, the Bureau reminds those providers that they must continue to 
comply with the transfer notice and consent requirements in the 
Commission rules, as well as any transfer processes implemented by 
USAC.
    19. With the anticipated freeze in enrollments, the Bureau also 
plans to pause certain activities related to advertising, awareness, 
and outreach. These activities were included when the ACP was first 
established because the Commission recognized that, for the program to 
achieve its full potential and reach as many eligible households as 
possible, households likely to be eligible must be clearly informed of 
the program's existence and key program information and that the 
Commission, USAC, participating providers, and other stakeholders and 
partners play an important role in disseminating information about the 
ACP to enrolled households and households likely to be eligible. 
Accordingly, the Commission adopted certain advertising and awareness 
requirements consistent with the Infrastructure Act and implemented 
certain statutorily authorized outreach tools. These activities that 
promote awareness of and facilitate enrollment in the ACP must also 
stop concurrently with the anticipated enrollment freeze, so as to 
avoid consumer confusion.
    20. Advertising, Notification Upon Subscription or Renewal, and 
Public Awareness Requirements. The ACP rules include several 
requirements to ensure that consumers receive meaningful notice of the 
existence of the ACP. Commission rules require providers to publicize 
the availability of the ACP in a manner reasonably designed to reach 
those consumers likely to qualify for the program and in a manner that 
is accessible to individuals with disabilities. In addition, consistent 
with the statutory requirements laid out in the Infrastructure Act, the 
ACP rules include a requirement that participating providers must 
notify in writing or orally, in a manner that is accessible to 
individuals with disabilities, all consumers who either subscribe to or 
renew a subscription to an internet service offering about the ACP and 
how to enroll, along with requirements governing the timing and 
frequency of the required notices. Also consistent with the statutory 
requirements laid out in the Infrastructure Act, the ACP rules include 
a requirement that participating service providers carry out public 
awareness campaigns in their ACP areas of service that highlight the 
value and benefits of broadband internet access service and the 
existence of the ACP in collaboration with state agencies, public 
interest groups, and non-profit organizations.
    21. As a general matter, ``an agency must adhere to its own rules 
and regulations.'' Although strict application of a rule may be 
justified ``to preserve incentives for compliance and to realize the 
benefits of easy administration that the rule was designed to 
achieve,'' the Commission's rules may be waived for ``good cause 
shown.'' The Commission may exercise its discretion to waive a rule 
where special circumstances warrant a deviation from the general rule, 
and such deviation will serve the public interest. The Commission may 
take into account considerations of hardship, equity, or more effective 
implementation of overall policy on an individual basis. The Bureau, 
under delegated authority, may act on requests for waiver of rules.
    22. While the advertising and promotion requirements have played a 
valuable part in educating the public about the ACP, continuing to 
require providers to disseminate information about the ACP after the 
program ceases to accept new enrollments in excess of statutory 
requirements would cause consumer confusion and thus be contrary to the 
public interest. Accordingly, the Bureau waives the requirements of 
Sec.  54.1804(b) of the Commission's rules effective February 8, 2024, 
concurrent with the start of the enrollment freeze, and this waiver 
will remain in effect for the duration of the enrollment freeze. While 
the Bureau is unable to waive the underlying statutory requirements set 
forth in Sec.  54.1804(c) and (d) of the Commission's rules because 
they are contained in the statute, the Bureau advises that conducting 
campaigns informing consumers about the end of the ACP will be 
considered to be in compliance with those statutory requirements during 
the enrollment freeze.
    23. ACP Outreach Grant and Pilot Programs. The Commission 
established the Affordable Connectivity Outreach Grant and ACP Pilot 
Programs to increase the awareness of and encourage participation in 
the ACP among eligible households. Under the Affordable Connectivity 
Outreach Grant Program, over 200 governmental and non-governmental 
entities are receiving grant funding to promote awareness of the ACP. 
The 23 participants in the Your Home, Your internet Pilot Program, and 
the 11 participants in the ACP Navigator Pilot Program are connecting 
with eligible households in their communities to promote the ACP and 
help provide application assistance. Congress authorized the Commission 
to ``conduct outreach efforts to encourage households to enroll in the 
Affordable Connectivity Program'' including providing grants to 
outreach partners in order to carry this out. The Commission, in 
adopting rules for the Affordable Connectivity Outreach Grant Program, 
stated ``[e]ntities that receive grant awards may continue to use their 
grant funds for outreach until enrollments cease.'' The Commission 
recognized that, should enrollments stop during the wind-down of the 
ACP, continuing outreach efforts could undermine the objectives of the 
grant programs and create consumer confusion. Additionally, it would 
not be fiscally responsible to continue grant-funded

[[Page 7631]]

enrollment efforts after an enrollment freeze. Therefore, consistent 
with the direction in the Commission's order establishing the 
Affordable Connectivity Outreach Grant Program, which includes grant 
funding for the ACP Pilots Programs, the Bureau and CGB will coordinate 
on communications and instructions to grant recipients and pilot 
participants on the need to cease grant-funded outreach work and other 
pilot-related activities that focus on enrollment activities as a 
result of the enrollment freeze.
    24. Claims Process--Expedited Claims Submission Timeline. In the 
ACP Order, the Commission delegated to the Bureau the authority to 
develop procedures regarding how the remaining funds will be 
distributed in the final month of the ACP, any timing considerations 
related to the reimbursement process, and other procedures necessary to 
smoothly wind down the program. Pursuant to this authority, the Bureau 
adopts the following modifications to the existing reimbursement 
process to require providers to submit new claims by the 1st of the 
second month after the snapshot date. The Bureau finds these 
modifications are necessary to help ensure that USAC has a timely 
accounting of finalized provider claims to inform the forecast of 
remaining program funds and for the smooth administration of end-of-
program procedures. Moreover, requiring providers to submit their 
claims on a shorter timeline will help track limited funding as it 
gives the Commission and USAC certainty of the amount the providers 
seek to claim for each service month.
    25. Beginning with the February 1, 2024, snapshot, the Bureau 
requires participating providers to submit to USAC their reimbursement 
claims for service for households captured on the snapshot report by no 
later than the 1st of the second month after the snapshot date, or the 
following business day in the event that the 1st falls on a weekend or 
holiday. For example, all claims and upward revisions for the February 
1 uniform snapshot date and for claims and upward revisions for 
preceding months must be submitted no later than April 1, 2024. 
Thereafter, all claims must be submitted no later than the 1st of the 
second month after the snapshot date, or the following business day in 
the event that the 1st falls on a weekend or holiday. Reimbursement 
claims submitted after the deadline will not be processed. While 
downward revisions will continue to be accepted, providers should make 
every effort to ensure that their reimbursement claims are complete and 
accurate, particularly as the ACP enters the wind-down phase. To 
facilitate the efficient wind-down of the ACP, the Bureau strongly 
encourages providers to submit any remaining outstanding claims for 
reimbursement or revisions prior to February 1, 2024. Should the ACP 
receive additional funding, the Bureau will re-evaluate the need to 
continue to require providers to submit claims on this new timeline.
    26. Partial Reimbursement. In the event that reimbursement claims 
in the final month of the ACP exceed the amount of remaining funds, 
reimbursements for benefits passed through to households will be paid 
out to providers on a reduced, pro-rata basis. For example, if based on 
the forecast of the depletion of funding, the remaining balance in the 
Affordable Connectivity Fund (Fund) is sufficient to pay out 80% of 
each reimbursement claim submitted in the final month, the Fund will 
pay out 80% of each claim on a pro-rata basis, thus depleting the Fund. 
Similarly, if the Fund is only sufficient to pay 40% of each 
reimbursement claim in the final month, the Fund will pay out 40% of 
each claim on a pro-rata basis. The Bureau recognizes that the ACP 
Order contained language that suggested that providers would ``in no 
circumstances'' receive less than 50%'' of the providers' claim for the 
final month. However, the ACP Order also recognizes that the Fund might 
not support a 50% pro-rata payout in the final month on claims 
submitted and directs staff in this event to determine how best to use 
the remaining funds consistent with the law. Interpreting the entirety 
of the relevant paragraph, along with the fact that the Fund is 
limited, the Commission's statement expresses a preference for a pro-
rata reimbursement scheme and also provides the Bureau with flexibility 
in implementing it if the Fund will not support a 50% pro-rata 
reimbursement rate in the final month. The Bureau intends, absent 
unforeseen circumstances, to direct USAC to provide notice to 
participating providers of whether providers will receive partial 
payment and the projected pro-rata share of such partial payments for 
that month as soon as practicable.
    27. The Bureau understands that providers desire certainty as to 
whether there will be funding to allow for a partial month payment for 
benefits passed through to ACP households and as to the amount that the 
fund can reimburse providers for that benefit applied to ACP 
households' bills. Without this certainty, providers may end up passing 
through a benefit to households for which they may not receive full 
reimbursement if the ACP cannot fund that reimbursement at the very end 
of the program. The Bureau also recognizes the financial hardship that 
receiving a partial reimbursement may place not only on providers, but 
also on existing households, who may receive an unanticipated bill to 
cover the difference between the full ACP discount the household was 
expecting and the partial benefit that was applied. Therefore, to 
assist providers in winding down their own participation in the 
program, the Bureau allows ACP participating providers to choose 
whether to forego providing ACP service and receiving partial payment 
for discounts passed through to ACP households after the last fully 
funded month. At the time of the announcement of the end of the last 
fully funded month of the ACP, the Bureau will provide guidance to 
providers that wish to receive reimbursement for discounts provided to 
ACP households beyond that last fully funded month concerning how to 
notify USAC of their intention to do so. Providers that choose to forgo 
receiving partial reimbursement for the final month will not be 
required to pass through any benefits to ACP households after the 
announced last fully funded month. Providers that forgo reimbursement 
after the last announced fully funded month will not be expected to 
comply with voluntary withdrawal requirements set forth in Sec.  
54.1801(e) of the Commission's rules.
    28. Provider Applications and ACP High-Cost Area Benefit 
Eligibility--Provider Application and Approval. The Bureau finds that 
it would be administratively inefficient and confusing to consumers to 
approve new provider applications for the ACP when enrollments have 
been frozen. Processing new provider applications, approvals, and 
election notices risks confusing ACP households by creating a false 
expectation that, by subscribing with a newly approved provider, the 
household would be able to enroll or transfer to that provider to 
receive the ACP benefit during the enrollment freeze. Accordingly, the 
Bureau and USAC will stop reviewing new provider applications and 
election notices, as well as new applications for alternative 
verification processes, on February 7, 2024, at 6 p.m. EST, concurrent 
with the final day that enrollments will be permitted in the program. 
While application and election notice reviews are frozen, providers, 
however, must continue to update contact, device, or other 
participation information to USAC

[[Page 7632]]

in accordance with the Commission's rules.
    29. High-Cost Area Benefit Provider Applications. As required by 
the Infrastructure Act, the Bureau established a mechanism for 
providers to offer a benefit to eligible households in certain areas 
designated as ``high-cost'' by the National Telecommunications and 
Information Administration (NTIA). In keeping with those requirements, 
around the same time NTIA designated such high-cost areas, on November 
1, 2023, the Bureau announced that USAC will begin accepting 
applications from providers seeking to qualify to offer the high-cost 
area ACP benefit on January 17, 2024. Due to the depletion of funding 
and upcoming enrollment freeze, USAC will not accept provider 
applications to offer the high-cost area benefit. The Bureau finds that 
processing high-cost area benefit applications and releasing 
educational and training materials related to the high-cost area 
benefit during the enrollment freeze would cause confusion among 
current and potential ACP households. Approving ACP high-cost area 
benefit applications, publishing information, and moving ahead with 
implementing the enhanced benefit while new households and providers 
cannot enter the program could cause confusion among subscribers about 
the future status of the program and the availability of the enhanced 
benefit for new subscribers or providers. Furthermore, changing the 
amount of the discount received by ACP households enrolled with a 
provider approved to offer the ACP high-cost area benefit, from $30 to 
$75, may cause increased consumer confusion with regard to the 
availability of program funding. The Bureau will re-evaluate the status 
of the ACP high-cost area benefit provider applications if the ACP 
receives additional funding.
    30. Ongoing Program Integrity Obligations. The Commission is 
committed to ensuring the integrity of the ACP and addressing potential 
non-compliance using the full range of the Commission's authority and 
available tools, including audit and investigatory procedures and in 
cooperation with the FCC Office of Inspector General and law 
enforcement agencies. This commitment will continue during the ACP 
wind-down phase. The Bureau reminds participating service providers of 
their obligation to use robust policies and procedures for ensuring 
compliance with the Commission's rules--including the requirements set 
forth in the Order concerning consumer notices, opt-ins, and other 
aspects of wind-down--and de-enrolling households as appropriate. Even 
during a wind-down period, the Commission will use the full range of 
its authority and available tools to address non-compliance with the 
ACP rules, and providers are reminded of their obligation to comply 
with USAC and Commission requests. Providers are also reminded of their 
document retention requirements under the ACP programmatic rules, which 
will extend after the end of the ACP. Similarly, the Commission and 
USAC will retain records from the ACP under applicable National 
Archives and Records Administration schedules and directives--after 
which, the Commission will appropriately dispose of such records and 
rescind the applicable System of Records Notice under the Privacy Act 
of 1974.

III. Procedural Matters

    31. Paperwork Reduction Act Analysis. This document does not 
contain new or modified information collection requirements subject to 
the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. In 
addition, therefore, it does not contain any new or modified 
information collection burden for small business concerns with fewer 
than 25 employees, pursuant to the Small Business Paperwork Relief Act 
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
    32. The Bureau finds that notice and comment procedures are not 
required here under the Administrative Procedure Act, 5 U.S.C. 551 et 
seq. The Bureau notes that section 904(h) of the Consolidated 
Appropriations Act of 2021, which established the Emergency Broadband 
Benefit Program, the predecessor to the ACP, included an exemption from 
APA rulemaking requirements. See Consolidated Appropriations Act, div. 
N, tit. IX, section 904(h)(1), codified at 47 U.S.C. 1752(h)(1). In 
addition, certain of the rules being adopted here are procedural rules 
that are exempt from the notice and comment requirements. 
Administrative Procedure Act, 5 U.S.C. 553(b)(A). To the extent the 
rules adopted here are substantive rules not otherwise exempt from the 
APA rulemaking requirements, the Bureau finds good cause to forego 
notice and comment because it would be impracticable and contrary to 
the public interest. See id. at Administrative Procedure Act, 5 U.S.C. 
553(b)(B). Given the short period of time between now and the projected 
depletion of ACP funding, undertaking notice and comment would not 
permit the Bureau to adopt rules with enough time for providers and 
USAC to prepare for wind-down and give adequate notice to ACP 
households about the end of the program. This could lead to substantial 
consumer confusion and result in unwanted disruptions to service for 
ACP households that could deprive households of the broadband 
connections they need for work, school, healthcare, and more and 
potentially resulting in significant adverse impacts on employment, 
education, and access to healthcare for millions of low-income 
consumers. The Bureau also notes that the Order was effective January 
11, 2024, pursuant to the exemption in 47 U.S.C. 1752(h)(1), and also 
finds good cause for doing so for all the reasons stated.
    33. Accordingly, it is ordered, pursuant to the authority contained 
in Sec. Sec.  0.91, 0.291, and 1.3 of the Commission's rules, 47 CFR 
0.91, 0.291, and 1.3, that 47 CFR 54.1804(b) of the Commission's rules 
is waived effective February 8, 2024, to the extent described herein.
    34. Accordingly, it is ordered, pursuant to pursuant to the 
authority contained in in section 904 of division N, title IX of the 
Consolidated Appropriations Act, 2021, Public Law 116-260, 134 Stat. 
1182 as amended by Infrastructure Investment and Jobs Act, Public Law 
117-58, 135 Stat. 429 (2021), 5 U.S.C. 551 et seq., and Sec. Sec.  
0.91, 0.291, and 1.3 of the Commission's rules, 47 CFR 0.91, 0.291, and 
1.3, section 303(r) of the Communications Act, as amended, 47 U.S.C. 
303(r), and Sec. Sec.  0.91 and 0.291 of the Commission's rules, 47 CFR 
0.91 and 0.291, that the Order is adopted.
    35. It is further ordered, that pursuant to Sec.  1.102(b)(1) of 
the Commission's rules, 47 CFR 1.102(b)(1), the Order shall be 
effective January 11, 2024.

Federal Communications Commission
Trent Harkrader,
Chief.
[FR Doc. 2024-02093 Filed 2-2-24; 8:45 am]
BILLING CODE 6712-01-P