Every State Identifies Broadband Affordability as Primary Barrier to Closing Digital Divide

In 2021, Congress enacted the Digital Equity Act (DEA) as part of the massive Infrastructure Investment and Jobs Act (IIJA). The DEA defines digital equity as “the condition in which individuals and communities have the information technology capacity that is needed for full participation in the society and economy of the United States.” This marked the first time that federal lawmakers had dedicated funding specifically for digital equity programming, providing money for state broadband offices to analyze the digital equity landscape in their states and develop plans to reduce the barriers to accessing such critical service. For the first time, all 50 states; Washington, D.C.; and Puerto Rico created digital equity plans under the planning grant program.

The Pew Charitable Trusts reviewed all 52 plans to assess the range of goals and planned uses for the funding. This analysis addresses how states are including broadband access and affordability in their digital equity goals.

Pew’s analysis found that every state plan identified the lack of affordable access as the leading barrier to digital equity. These findings are not surprising, given that price, not availability, is one of the leading obstacles to unconnected households getting home broadband services. For low-income households and people living on fixed incomes, such as many people age 60 and older, the price burden of internet results in them being cut off from the benefits that a high-speed connection can provide: from access to health care and education to staying connected to family and friends.

Although other federal programs, most notably the Broadband Equity, Access, and Deployment (BEAD) Program and the Capital Projects Fund, focus primarily on deploying broadband infrastructure to all unserved or underserved households, states plan to use digital equity funds to address challenges that are specific or unique to what are called “covered populations” under the law. These include low-income households, people over 60, incarcerated individuals, veterans, people with disabilities, individuals for whom English is not a first language, racial and ethnic minorities, and people living in rural areas. The planned interventions then can help to ensure that all households have the resources they need to access the internet.

Expanding public access models

In addition to committing to reaching all unserved and underserved locations and increasing consumer access to 100 megabits per second (Mbps) downstream/20 Mbps upstream service (the minimum speed standard set by the BEAD program), at least 22 states also plan to increase or promote public Wi-Fi options by expanding access at what are known as community anchor institutions (CAIs), such as libraries, schools, and public housing authorities, as well as at indoor and outdoor public access points and charging stations. Additionally, several states plan to map public Wi-Fi availability and make these resources available so anyone can find a public connection point.

Four states and territories plan to set up connectivity hubs where residents can come for free Wi-Fi, device support, telehealth services, and to work with digital navigators—people who can teach digital skills and help residents find their way around the internet. For example:

• The District of Columbia is planning to set up tech hubs that would be primarily located in areas with the lowest broadband adoption and highest need, and would include high-speed Wi-Fi and small workspaces with internet-connected devices for remote learning; private call areas suitable for telehealth meetings; large rooms for digital skills training; and collaborative community spaces. The hubs would offer skills training with digital navigators, broadband sign-up assistance, and device lending, among other activities.
• Maine’s connectivity hubs, funded by the state’s Capital Projects Fund allocation, are intended to complement the state’s existing digital equity implementation efforts. These spaces should support education, workforce, and telehealth goals by “providing public access to the internet, access to affordable devices for public use and lending programs, workforce and digital skills training, education, and telehealth programming.”
• North Dakota’s connectivity hubs will be designed to “consolidate telehealth, digital skills, digital navigators, and workforce offerings at existing CAIs in regions with large, covered populations and unserved and underserved locations.”
• Puerto Rico plans to develop eight to 10 multipurpose community technology centers across the island to “house numerous social services like health care access and include broadband internet and device access and support.” Rural areas will be served instead by internet community centers—smaller satellite centers with the same focus on digital equity services.

Plans for 14 states and jurisdictions—Arkansas, the District of Columbia, Hawaii, Kentucky, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, North Dakota, Oklahoma, Rhode Island, and Vermont—prioritize connectivity in affordable housing and multidwelling units (MDUs). For example:

• Arkansas plans a pilot program with select municipalities and housing developers to include in-unit internet in affordable housing units. The state also will convene other housing partners, including the Affordable Housing Association of Arkansas, the Arkansas Fair Housing Commission, and the Metropolitan Housing Alliance, to get additional feedback on the pilot program. After two years, officials will then evaluate the effectiveness of the pilot program and develop best practices that other municipalities in the state can adopt.
• Oklahoma plans to identify and fund MDU locations to pilot free high-speed internet, Wi-Fi, or both, and to work with local economic development organizations to help promote and fund Wi-Fi infrastructure in the chosen locations. The pilot will inform development of best practices for implementing free apartment Wi-Fi for the state to distribute to other MDUs.

Tackling affordability

State policymakers recognize the importance of ensuring that every household can afford an internet connection. Most states had centered their affordability objectives around the Affordable Connectivity Program (ACP), a federal subsidy that provided low-income households up to $30 per month ($75 on Tribal lands) that would help pay for broadband service. For example, Iowa planned to educate community and health-related service providers to assist clients in signing up for the ACP as part of the overall patient intake process. And Nevada intended to train local government officials, case workers, social service agencies, and community-based organizations working with ACP-eligible households to offer ACP enrollment assistance.

However, funding for the ACP lapsed in May 2024, so states may adjust these strategies to focus on other subsidies. As such, states plan to raise awareness about other cost abatement programs, such as low-cost plans from providers and Lifeline, a separate federal subsidy that offers up to $9.25 per month that qualifying households can use for a broadband subscription. In fact, four states—Alabama, Colorado, Georgia, and Oklahoma—included strategies for increasing Lifeline adoption in their digital equity plans. And four states—New York, North Dakota, West Virginia, and Wyoming—plan to work with benefits program administrators to align broadband subsidy eligibility and enrollment processes with other means-tested programs, such as the Supplemental Nutrition Assistance Program.

Price, meanwhile, is just one component of affordability. Lack of digital skills and devices may also pose barriers to an affordable connection. People in households that are not connected may struggle to access affordable broadband offers and need assistance signing up for low-cost service, accessing devices, and learning digital skills. Many states included plans to train digital navigators and community organizations to help people sign up for internet access and raise awareness of subsidy programs and device and digital skills training resources among covered populations.

Meanwhile, several states and territories explored the option of a statewide broadband affordability subsidy intended to supplement ACP, and some are examining options to develop local replacements for the subsidies ACP offered. For example:

• California will develop a state-led affordable broadband offer.
• Minnesota will explore models for a statewide broadband subsidy program to lower internet costs for low-income households.
• Puerto Rico will develop a device- and service-subsidy program to increase broadband internet accessibility for low-income residents.
• South Carolina will explore options to create public and private affordability programs to replace ACP.
• The Wisconsin Public Service Commission plans to work with partners and an internal policy team to develop a statewide program to ensure that low-income households have access to home broadband for less than $30 per month.

States continue to focus on increasing access and affordability as part of their digital equity planning. By increasing awareness of affordable broadband offers, funding technology hubs, and expanding broadband access in affordable housing, state policymakers will take a critical step toward ensuring digital equity for every household.

Kelly Wert works on internet access in vulnerable communities for The Pew Charitable Trusts’ broadband access initiative.