Executive Summary
Broadband access is crucial for Gen-Z participation in today’s digital economy, offering significant economic, educational, and healthcare benefits. The Biden-Harris Administration advanced digital equity through programs like the Broadband Equity Access and Deployment (BEAD) initiative, which allocated $42.45 billion to expand high-speed Internet access, and the Affordable Connectivity Program (ACP), which provided $14.2 billion in funding to help low-income households afford internet access by offering a monthly service discount and a one-time device discount. These efforts were key in working to close the digital divide, particularly for rural and underserved communities. However, with ACP funding having ended in April and program benefits concluding in June of 2024, millions have now lost affordable high-speed internet, threatening their ability to thrive in a connected world. Immediate policy action is needed to promote equitable broadband access across the U.S.
Background
Broadband is not just a tool but an essential infrastructure for thriving in the digital economy. This is especially true for Generation-Z, who are the most digitally connected generation and are increasingly shaping the future of technology and society. Born between 1997 and 2012, Gen-Z makes up around 20% of the U.S. population and is known for their deep engagement with digital technologies. By 2025, Gen-Z is expected to constitute nearly 30% of the global workforce, with a collective buying power of approximately $360 billion annually - a number that will only continue to rapidly grow as more of Gen-Z enters adulthood and the workforce.
For Gen-Z, the internet is woven into the fabric of daily life, providing access to education, employment opportunities, and social interactions. They rely on broadband for everything from remote learning to entrepreneurship and community building. A lack of access to high-speed internet disproportionately impacts this generation’s ability to fully engage with the world around them, threatening their potential to lead in the innovation and technology sectors. The expiration of ACP funding could exacerbate existing inequalities, as roughly 43% of low-income households—many of whom were supported by ACP—now face disconnection from vital online resources. Rural households also face higher costs, paying an average of $72 per month for broadband compared to $62 for non-rural households, making affordability a significant barrier to consistent internet access.
The impact of losing broadband access goes beyond individual households. Seventy-five percent of ACP subscribers rely on broadband to complete schoolwork, and many use it to book and attend telehealth appointments, especially in areas that are considered medical deserts. According to studies, equitable and reliable broadband access across the U.S. could add up to $160 billion annually to the U.S. economy, particularly by enabling small businesses, remote workers, and digital innovators to thrive. Without sustained investment in broadband infrastructure, the U.S. risks losing its competitive edge in the global market, especially as digital transformation accelerates across industries.
The lack of high-speed internet access could also impede Gen-Z’s ability to take full advantage of their digital skills. This generation is not only tech-savvy but also highly entrepreneurial, with many already using digital platforms to launch businesses, influence trends, and shape the digital economy. If they lose access to affordable, reliable internet, their potential to lead the next wave of innovation and economic growth is significantly diminished. This underscores the urgency of finding a sustainable solution to bridge the digital divide.
Solution
Bills such as the PLAN for Broadband Act (H.R. 4505 in the House and S. 2238 in the Senate), which would establish a comprehensive National Strategy to Close the Digital Divide. This Act coordinates efforts across multiple federal agencies, such as the FCC and the Department of Education, to ensure high-speed, affordable internet access for all Americans. By streamlining program administration and reducing costs for state, local, and Tribal governments, the Act aims to eliminate barriers to broadband deployment and set clear, achievable goals for nationwide internet coverage.
To sustain and expand the progress made under the Biden-Harris Administration, a federal investment is necessary. Permanent funding will guarantee that low-income and rural communities retain access to affordable, high-speed broadband. This investment will not only close the digital divide but also ensure that Gen-Z can continue to leverage their digital skills, drive innovation, and fully participate in the economy. Congress must prioritize broadband access as a critical resource for the future of the U.S. economy and its global competitiveness.
