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In Short

Casting an Internet Lifeline to Low-income Americans

Since the earliest days of the Internet, there has been a digital divide. If you are Black, Latino, or American Indian, or if you didn鈥檛 graduate from college or are above the age of 65, you are historically less likely to have access to broadband Internet. According to new data from the National Telecommunications & Information Administration (NTIA), that inequality is 鈥渟lowly shrinking.鈥 In a , NTIA writes that Internet use rates for groups that have historically fallen behind鈥搇ike seniors, people without college degrees, and people of color鈥搃nched up in 2015.

But Americans鈥 Internet prognosis isn鈥檛 coming up all roses just yet: Compared with the demographic groups with the highest Internet use (Whites, Asians, the college-educated), there are still double digit disparities in the likelihood that African Americans, Latinos, and people over the age of 65 are able to get online. Access gaps by educational attainment remain large: only 58 percent of those without a high school diploma reported going online, compared to 88 percent of those with college degrees. The NTIA analysis echoes findings from the Federal Communications Commission鈥檚 , which noted lackluster broadband deployment, and by the Pew Center, which also shows overall home broadband adoption plateauing or in a slight decline.

Earlier this month the White House outlined goals to connect more Americans to the Internet by 2020, but what exactly will it take to reach Americans still without connectivity?

Given the ascendancy of the Internet in many of our daily lives, the fact that millions of Americans still live without the Internet can feel absurd. How would your life change if you woke up tomorrow without email? Or Google Maps? Without the Internet, how would you file your child鈥檚 FAFSA, or learn that your office was closed for inclement weather? Given that Internet communications are now essential to participation in our society, the time is ripe for policy intervention to close a digital divide harms and presents a drag on .

And cost is a major barrier to access. US broadband prices are compared with peer countries in Europe and Asia, and 60 percent of broadband Internet non-users say is a major challenge to getting access. The FCC took important steps last month to address this barrier for low-income households鈥搖nfortunately, there is now an attempt in Congress to diminish them.

At its March Open Meeting, the FCC adopted a proposal to update Lifeline, a Reagan-era program that was originally designed to provide 鈥渁 ladder out of poverty鈥 through subsidized access to phone service. Recognizing the changing landscape of modern communications technology, the FCC updated the program to include broadband as an eligible service. In an Order that culminated months of an open comment period, Lifeline recipients will soon be able to put their $9.25 monthly household subsidy towards standalone broadband service, in addition to bundled voice and broadband plans.

The FCC鈥檚 plan to 鈥渞eboot鈥 Lifeline also includes to ensure that Lifeline customers get access to high quality Internet, as well as measures to streamline enrollment and strengthen competition among Lifeline service providers. For home, or 鈥渇ixed鈥 Internet service plans, speeds have to be comparable to what the majority of customers receive (right now, 10 Mbps download/1 Mbps upload), and at least 150 GB of uncapped use.

True to its original intent, Lifeline is geared to serve those Americans least likely to have Internet access, but with the most to gain from it. In order to be eligible for the Lifeline subsidy, a customer must be at 135% of the poverty line, $32,000/year for a family of four, or participate in a select number of .

A modernized Lifeline is far from a silver bullet. The program only defrays the cost of broadband service (the subsidy is slightly less than the monthly cost of the cheapest of currently-available broadband plans, Comcast鈥檚 $9.95 program, which was created as a condition to Comcast鈥檚 2011 merger with NBC Universal), so we hope that more broadband plans become available at or very near to the subsidy amount. The Commission鈥檚 plan also does not specifically address the issue of handset or device costs, nor is it clear whether it will support other important mechanisms to improve broadband adoption, such as digital literacy training. Years of work by the FCC and public interest groups (including by OTI) went into the FCC鈥檚 order, and the proposal鈥檚 adoption will only kick off many more months of efforts to effectively implement the plan.

Roadblocks are already coming up. Less than two weeks after the FCC adopted its Lifeline order, Rep. Austin Scott introduced H.R. 4884, 鈥渢he Controlling the Unchecked and Reckless Ballooning of the Lifeline Fund Act (CURB Lifeline).鈥 This bill seeks to cap Lifeline鈥檚 budget and cut $750 million from the FCC order鈥攅ven if doing so would exclude eligible families from participating. In the words of , undersigned by a number of civil rights advocates, opposing the bill, 鈥淸p]assage of H.R. 4884 would undercut both the goals of the Lifeline program and the principles for Lifeline modernization.鈥 

The FCC鈥檚 actions on Lifeline are historic. By lowering the barriers to Internet access, the FCC鈥檚 proposal will help low-income Americans complete school work, get health care, and apply for college and jobs. A modern Lifeline may be but one small piece of closing the digital divide, but the Commission deserves great support in tackling this important issue. Politics must not distract from efforts to close the digital divide. 

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Emily Hong

Policy Program Associate, Open Technology Institute

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Casting an Internet Lifeline to Low-income Americans