Congress Urged to Provide Stay Connected Vouchers to Impacted Americans

As of May 14, over 750 broadband providers and trade associations have signed on to the FCC’s Keep Americans Connected Pledge. In addition, many have gone above and beyond those commitment by, for example: temporarily suspending data caps and overage charges; offering free or discounted service to students, educators, and front-line medical personnel; and waiving charges for low-income households enrolled in the Lifeline program. In a May 13 FSF Perspectives, I provided numerous examples of the voluntary actions ISPs have taken.

However, the COVID-19 pandemic will continue to impact countless Americans financially for the foreseeable future. In a blog post earlier this week, I described a provision in the HEROES Act passed by the House of Representatives on May 15 that would make nearly $9 billion available to the FCC to reimburse eligible providers offering discounted service (up to $50 per month) and devices (up to $100) to eligible consumers for the duration of this crisis and six months thereafter.

Another proposal would provide Stay Connected Vouchers directly to consumers. Described by Steven Berry, President and Chief Executive Officer of the Competitive Carriers Association, in testimony before the Senate Committee on Commerce, Science, and Transportation on May 13, Stay Connected Vouchers would enable affected households to continue accessing essential communications services without amassing high account balances.

Broadband providers that adopt the Keep Americans Connected Pledge agree not to terminate service, and waive late fees, for those unable to make payments due to the novel coronavirus. But those payments are postponed, not erased. At some point in the future payment will be required. The Commission has extended through the end of June the period of time during which Pledge commitments apply, and that provides substantial short-term relief. But the fact remains that the longer this situation goes on, the greater the deferred financial obligation will be for affected individuals.

Stay Connected Vouchers would address this issue by establishing a longer-term safety net. Eligible households would receive two $50 vouchers each month during the COVID-19 crisis. Recipients could use them to pay for whatever communications service(s) they choose: text, voice, video, mobile or fixed broadband. Vouchers would expire six months after the end of the public-health emergency.

Proponents claim that a primary benefit of the Stay Connected Voucher program, which would be administered by the FCC, is its focus on practical and administrative expediency: by leveraging eligibility criteria and distribution mechanisms already in use for stimulus payments under the CARES Act, it would allow consumers to receive relief quickly.