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Rule2022-17927

Affordable Connectivity Program

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Published

September 6, 2022

Effective

November 7, 2022

Issuing agencies

Federal Communications Commission

Abstract

In this document, the Federal Communications Commission (FCC or Commission) establishes the Affordable Connectivity Outreach Grant Program (Outreach Grant Program), which will provide eligible partners grant funds to conduct outreach in support of the Affordable Connectivity Program (ACP).

Full Text

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<title>Federal Register, Volume 87 Issue 171 (Tuesday, September 6, 2022)</title>
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[Federal Register Volume 87, Number 171 (Tuesday, September 6, 2022)]
[Rules and Regulations]
[Pages 54311-54329]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-17927]

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Rules and Regulations
Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents.

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Federal Register / Vol. 87, No. 171 / Tuesday, September 6, 2022 /
Rules and Regulations

[[Page 54311]]

FEDERAL COMMUNICATIONS COMMISSION

2 CFR Chapter LX

47 CFR Parts 0 and 54

[WC Docket No. 21-450; FCC 22-64; FR ID 101087]

Affordable Connectivity Program

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: In this document, the Federal Communications Commission (FCC
or Commission) establishes the Affordable Connectivity Outreach Grant
Program (Outreach Grant Program), which will provide eligible partners
grant funds to conduct outreach in support of the Affordable
Connectivity Program (ACP).

DATES: Effective November 7, 2022.

FOR FURTHER INFORMATION CONTACT: For further information, please
contact, Jessica Campbell, Telecommunications Access Policy Division,
Wireline Competition Bureau, at <a href="/cdn-cgi/l/email-protection#ca80afb9b9a3a9abe489aba7baa8afa6a68aaca9a9e4ada5bc"><span class="__cf_email__" data-cfemail="c882adbbbba1aba9e68ba9a5b8aaada4a488aeababe6afa7be">[email&#160;protected]</span></a> or 202-418-
7400, or Rashann Duvall, Telecommunications Access Policy Division,
Wireline Competition Bureau, at <a href="/cdn-cgi/l/email-protection#520033213a333c3c7c162724333e3e123431317c353d24"><span class="__cf_email__" data-cfemail="ce9cafbda6afa0a0e08abbb8afa2a28ea8adade0a9a1b8">[email&#160;protected]</span></a> or 202-418-1438.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Second
Report and Order (Report and Order) in WC Docket No. 21-450, adopted on
August 5, 2022 and released on August 8, 2022. Due to the COVID-19
pandemic, the Commission's headquarters will be closed to the general
public until further notice. The full text of this document is
available at the following internet address: <a href="https://www.fcc.gov/document/fcc-establishes-affordable-connectivity-outreach-grant-program-0">https://www.fcc.gov/document/fcc-establishes-affordable-connectivity-outreach-grant-program-0</a>.

I. Introduction

1. In this final rule, the Commission establishes the Outreach
Grant Program, which will provide eligible partners grant funds to
conduct outreach in support of the Affordable Connectivity Program. The
Infrastructure Investment and Jobs Act (Infrastructure Act)
appropriated $14.2 billion for the Affordable Connectivity Program,
which provides qualifying low-income households discounts on broadband
service and connected devices, and expressly authorizes the Commission
to conduct outreach for the Affordable Connectivity Program, including
providing grants to outreach partners. The Commission previously
allocated up to $100 million of this budget for outreach, including an
outreach grant program and outreach activities by the Commission's
Consumer and Governmental Affairs Bureau (CGB) as authorized in the
Infrastructure Act, to be spent over five years.
2. The Affordable Connectivity Program plays an integral role in
helping to bridge the digital divide, which is an ongoing top priority
for Congress and the Commission. To date, over 12 million low-income
households participate in the Affordable Connectivity Program. However,
a significant number of qualifying households have not yet enrolled in
the Affordable Connectivity Program. The Commission previously
recognized in the ACP Order, 87 FR 8346, February 14, 2022, that to
achieve the program's full potential and reach as many eligible
households as possible, households must be clearly informed of the
program's existence, benefits, and eligibility qualifications, and how
to apply. Through this Outreach Grant Program, the Commission seeks to
enlist partners around the country to help inform ACP-eligible
households about the program in their local communities, and to provide
those partners with the funding and resources needed to increase
participation among those Americans most in need of affordable
connectivity.

II. Discussion

3. In this final rule, the Commission discusses the goals and
objectives of the Outreach Grant Program; provides examples of the
types of outreach activities and expenses that may be considered for
funding and types of eligible entities; allocates funding set-asides
for specific types of grantees; establishes important safeguards to
promote program integrity and guard against potential waste, fraud and
abuse; adopts and implements regulations pertaining to grants in title
2, subtitle B, and title 47 of the Code of Federal Regulations; directs
CGB, in coordination with the Office of General Counsel (OGC) and
Office of the Managing Director (OMD) as appropriate, to develop,
manage, and administer the Outreach Grant Program; provides guidance
and regulatory requirements for the framework for the Outreach Grant
Program; and addresses other requirements and administrative aspects of
the Outreach Grant Program. While this final rule provides the
necessary structure and guidelines for the Outreach Grant Program,
consistent with its authority under applicable Federal statutes and
regulations, additional details on specific grant program requirements
and the application process will be provided in one or more Notices of
Funding Opportunity (NOFOs) to be subsequently issued to solicit grant
applications, in the awards to individual eligible grantees, and in
orders and/or public notices issued by CGB in coordination with OMD,
the Wireline Competition Bureau (WCB), and OGC, as appropriate.
4. The ACP Further Notice of Proposed Rulemaking (FNPRM), 87 FR
8385, February 14, 2022, explained that a number of Federal statutes
and regulations govern Federal grant programs, including 2 CFR parts
25, 170, 175, 180, 182, and 200, and that appropriations riders may
also impose additional conditions on Federal grant programs. Commenters
did not specifically comment on the implementation of these provisions.
Accordingly, the Outreach Grant Program will be structured in
accordance with these regulations and any applicable statutes and
Federal grant program conditions in appropriations riders. To fully
implement the requirements of 2 CFR parts 25, 170, 175, 182 and 200 and
any other non-self-executing requirements in 2 CFR (and other
government-wide statutes and regulations applicable to grants and other
awards of Federal financial assistance), the Commission grants CGB, in
coordination with WCB, OGC, and OMD as appropriate, authority to adopt
policies and procedures regarding such requirements

[[Page 54312]]

through inclusion in the NOFO, inclusion in the terms and conditions of
each grant, adoption, modification, and/or clarification of
regulations, issuance of orders or public notices on delegated
authority, and/or through publicly available instructions provided to
applicants and/or grantees.
5. The Outreach Grant Program will provide funding to support
eligible partners in their outreach efforts to increase awareness of
the Affordable Connectivity Program among eligible households, and to
encourage eligible households to participate in the Affordable
Connectivity Program. The record, in particular, supports ACP outreach
to diverse populations. For purposes of the Outreach Grant Program,
diverse populations include people of color, persons with disabilities,
persons who live in rural or Tribal areas, and others who have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality.
6. Federal grant regulations require Federal awarding agencies to
incorporate into their grant programs ``clear goals and objectives that
facilitate the delivery of meaningful results consistent with the
Federal authorizing legislation of the program.'' Federal grant
regulations also require that the program design ``align with the
strategic goals and objectives within the Federal awarding agency's
performance plan and should support the Federal awarding agency's
performance measurement, management, and reporting as required by Part
6 of OMB Circular A-11'' and ``align with the Program Management
Improvement Accountability Act (Pub. L. 114-264).''
7. The ACP FNPRM sought comment on the goal of the Outreach Grant
Program. Pursuant to the Commission's Congressional authorization to
conduct ACP outreach, the Commission establishes an Outreach Grant
Program goal and related objectives to be consistent with the goals of
the Affordable Connectivity Program, to reduce the digital divide and
to promote awareness of and participation in the Affordable
Connectivity Program, and the Commission's overall strategic goals and
objectives that support bringing affordable broadband to low-income
households.
8. The Commission adopts the goal of facilitating the promotion of
the Affordable Connectivity Program to increase awareness of and
participation in the program among eligible households. This goal is
sound, supported by the record, and can be measured with appropriate
data collected from grantees and ACP program data. Additionally,
progress towards this goal advances the goals of the program to
``promote awareness and participation in the Affordable Connectivity
Program,'' and to ``reduce the digital divide for low-income
consumers.'' It also advances the Commission's overall strategic goals
and objectives of facilitating access to and adoption of broadband
internet by underserved, underrepresented, and low-income households.
To meet this Outreach Grant Program goal, the Commission will provide
funding to outreach partners to engage in targeted outreach to low-
income and diverse households nationwide both to gauge existing levels
of ACP awareness and to promote increased awareness of and
participation in the program by eligible households.
9. To support the accomplishment of the goal of facilitating the
promotion of the Affordable Connectivity Program to increase awareness
of and participation in the program among eligible households, the
Commission adopts three objectives for the Outreach Grant Program: (1)
expand and support diverse and impactful outreach efforts nationwide to
reach eligible Affordable Connectivity Program households, including,
but not limited to, people of color, persons with disabilities, persons
who live in rural or Tribal areas, and others who are or have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality; (2) strengthen outreach partners
nationwide by empowering them to mobilize people and organizations to
help raise awareness about the Affordable Connectivity Program; and (3)
increase enrollment in the Affordable Connectivity Program,
particularly in areas served by the outreach grants, by
underrepresented, underserved, and low-income households. These
objectives are consistent with the authorizing language in the
Infrastructure Act and are also consistent with the record and in
alignment with the Commission's strategic goals and objectives
identified in this document.
10. The first objective--expanding and supporting diverse and
impactful outreach efforts nationwide--implements the Commission's
strategic goals of facilitating access to and adoption of affordable
broadband internet service and promoting affordable access to reliable
broadband networks by diverse populations in underserved areas
including rural, high-cost, and insular areas. This objective is also
supported by the record--many commenters highlight the need for ACP
outreach, and, in particular, for outreach to diverse and underserved
groups across diverse geographic regions. To accomplish this objective,
the Outreach Grant Program will use eligibility criteria that encourage
program participation by entities that are capable of meeting the goal
of the program and will provide funding to support ACP outreach by a
broad range of eligible outreach partners.
11. The second objective--strengthen outreach partners--also
implements the Commission's strategic goal of increasing broadband
adoption and access and the strategic objective of communicating
information about FCC programs and policies to help increase adoption
of affordable broadband. It further implements the goals of the
Affordable Connectivity Program to promote awareness of and
participation in the program for eligible households. To accomplish
this objective, the Outreach Grant Program will provide funding for
outreach and will also provide prospective applicants technical
assistance on the Outreach Grant Program application requirements and
Outreach Grant Program rules and requirements and provide grantees with
programmatic training and standardized outreach materials.
12. The Commission's third objective under the Outreach Grant
Program--increasing enrollment in the Affordable Connectivity Program
by qualifying underrepresented, underserved, and low-income
households--implements the Commission's strategic objectives of
facilitating access to and adoption of broadband internet service,
including by low-income and underserved populations, and the Affordable
Connectivity Program's goal of reducing the digital divide. The
Outreach Grant Program can facilitate universal access to affordable
broadband internet service by raising awareness of and encouraging
participation in the Affordable Connectivity Program among eligible
households. To accomplish this objective, the Outreach Grant Program
will provide funding to facilitate outreach by eligible partners and
will encourage participation of partners who are capable of reaching
underrepresented, underserved, and low-income households and helping
them to enroll in the Affordable Connectivity Program.
13. Consistent with Federal grant regulations, and the delegations
of authority in this final rule, the Commission directs CGB, in
consultation with WCB and the Office of Economics and Analytics (OEA),
to develop meaningful performance measures to evaluate progress towards
this goal and to collect the necessary

[[Page 54313]]

information from grant recipients, subrecipients, and Universal Service
Administrative Company (USAC or ACP Administrator) to measure progress
towards this goal. Further the Commission instructs CGB, WCB, and USAC
to explore whether and how outreach activities could be linked to
specific enrollments, which could help measure the success of specific
outreach efforts. The Commission will use data collected as part of the
Outreach Grant Program as an indicator to measure Affordable
Connectivity Program awareness among eligible households, which will be
necessary to monitor progress toward the goal established in this final
rule. Accordingly, the Commission directs CGB, in coordination with OEA
and WCB, to use the data collected from grant recipients, which may
include consumer surveys, research efforts, and feedback sought from
``our state, community and non-profit partners helping to educate
consumers on the [ACP] application process'' to measure progress toward
the goal the Commission has established for the Outreach Grant Program.
14. In authorizing the Commission to conduct outreach, Congress
recognized that multiple forms of outreach are appropriate to ensure
that eligible households are aware of and encouraged to participate in
the Affordable Connectivity Program. However, the Infrastructure Act
does not specify the types of outreach activities that are fundable
through the Outreach Grant Program. Accordingly, in the ACP FNPRM, the
Commission sought comment on the types of outreach activities that
should be eligible for outreach grant funds, and the Commission now
provides examples of the types of outreach activities that may be
funded through authorized grants. Any NOFO issued for the Outreach
Grant Program will provide further guidance on allowable activities and
costs consistent with the goal and objectives of the Outreach Grant
Program and the applicable authority under Federal statutes and
regulations governing Federal grant programs.
15. Based on the Commission's careful review of the record, and
CGB's outreach experience, the Commission finds that a wide range of
activities including, but not limited to, in-person events, literature
campaigns, digital campaigns, and paid media campaigns could provide
meaningful, effective Affordable Connectivity Program outreach tailored
to targeted communities. Accordingly, in this final rule the Commission
does not prescribe a comprehensive list of fundable outreach activities
for the Outreach Grant Program. Instead, the Commission more broadly
directs that all grant-funded outreach activities must be designed to
support the stated goal and one or more of the stated objectives of the
Outreach Grant Program. Further information will be provided as part of
any NOFO issued by CGB. Consistent with the delegations of authority in
this final rule, the Commission directs CGB to determine whether
certain types of outreach activities should be prioritized based on a
reasoned evaluation of which outreach activities will best meet the
Outreach Grant Program goal and objectives, except as otherwise
directed herein.
16. The record supports funding a wide range of outreach activities
to ensure that grant program participants have the flexibility to
tailor outreach to the specific community they are targeting. For
example, Common Sense urges the Commission to give grantees flexibility
to use a variety of approaches because ``no single outreach method will
be appropriate for all communities'' given that the digital divide
impacts a diverse range of communities that are geographically
distinct, use a variety of languages and communication media, trust
different organizations, and have varying levels of technological
fluency. Alaska Federation of Natives (AFN) recommends that the
Commission give grantees ``maximum flexibility to conduct outreach
activities including television and radio, social media, local
newspapers (still common in rural communities), or community events''
to accommodate the needs of and most effective methods of reaching out
to different communities. Similarly, the San Diego Association of
Governments (SANDAG) states that ``[c]ommunity-focused outreach and
engagement strategies are highly dependent on a community's political,
social, and economic conditions'' and recommends that the Commission
``should provide the flexibility for grantees to design community
outreach and engagement based on localized community needs.'' The
Commission agrees that funding a wide range of outreach activities
through the Outreach Grant Program would best provide grantees
flexibility to conduct outreach tailored to the specific community they
are targeting and allow us to direct funding in a manner that optimizes
its ability to meet the programs goals and objectives.
17. Examples of the types of activities that commenters ask the
Commission to fund through the grant program include, but are not
limited to, in-person and virtual outreach events and campaigns, text
messaging, phone banking, social media campaigns, literature campaigns,
and paid media campaigns. Specifically, the National Hispanic Media
Coalition (NHMC) recommends that the Commission ``prioritize investment
in trusted messengers, culturally-relevant programming, and in-language
materials.'' Based on its experience implementing other federally
funded outreach campaigns, the National Urban League recommends that
``community events, mailers, radio and television broadcasts, paid
advertisements, ethnic media, newsletters, social media, and other
outreach targeted to the populations covered in the [Infrastructure
Act]'' be funded through the Outreach Grant Program. Several commenters
support funding paid media campaigns such as public service
announcements, radio and television ads, and billboards, particularly
in communities most impacted by the digital divide. Other commenters
emphasize the importance of traditional outreach campaigns, both
virtual or in-person, including, but not limited to, community events,
workshops, mailers, newsletters, phone banks, street teams/canvassers,
and door knocking. Commenters also support funding social media and
digital outreach, such as social media advertisements and text
messaging campaigns. These types of activities are tested and proven in
their ability to reach diverse and targeted audiences and may therefore
be considered an allowable use of grant funds in any NOFO
consideration.
18. The Commission recognizes the importance of ensuring that
grant-funded ACP outreach is accessible to all diverse, eligible low-
income households. Several commenters emphasize the value of
multilingual outreach, such as making program information available in
multiple languages and ensuring outreach staff are prepared to
communicate in languages other than English. The ACP rules also require
that service provider ACP outreach and other communications be
accessible to individuals with disabilities. The Commission agrees with
commenters that outreach in languages other than English is important
and also continues to find that there is a need for ACP outreach to be
accessible to individuals with disabilities. Accordingly, the
Commission allows funding for multilingual and accessible outreach, and
it strongly encourages grantees to conduct grant-funded outreach in the
languages spoken in the areas and communities that they are targeting
and to also ensure that the grant-funded outreach is accessible to
individuals with disabilities.

[[Page 54314]]

19. In addition, commenters emphasize the importance of providing
ACP application assistance to eligible consumers in connection with
fundable outreach activities. The Commission agrees that in-person
application assistance would help many potential applicants who may
experience difficulty completing and submitting an application on their
own, and specifically finds that grant funds may be used for this
purpose. The Commission notes that some commenters advocate for funding
that would support the ability to provide potential applicants remote
assistance with completing and submitting their applications. However,
as explained in the ACP Order, to protect the program's integrity, the
Commission requires ACP applicants to be physically present with the
individual providing application assistance to complete, sign, and
certify their application. This requirement provides an important
safeguard against waste, fraud, and abuse by ensuring that the
applicant is actually the person who signs and submits the application
and has reviewed and acknowledged the required applicant
certifications. The Commission therefore declines to provide grant
funds for remote assistance with completing and submitting ACP
applications.
20. Although access to the National Verifier can facilitate ACP
enrollment by allowing direct assistance to low-income households with
completing and submitting an application in the National Verifier, the
Commission declines to provide grantees access to the National Verifier
as part of this grant program. For program integrity and administrative
reasons, access to the National Verifier is limited to service
providers and certain neutral, trusted, third-party entities (e.g.,
governmental entities and their partners). Further, grantees are able
to conduct meaningful, effective ACP outreach and provide application
assistance without having direct access to the National Verifier.
However, the Commission separately has two limited scope and duration
pilot initiatives through which some outreach grantees that are also
neutral, trusted third party entities (such as state, regional, and
local governments, schools or school districts, state and local housing
authorities, Tribally Designated Housing Entities, associations
representing multiple Tribally Designated Housing Entities, or other
state, regional, and local government entities or public housing
authorities and their partners, as permitted pursuant to pilot rules),
may be able to obtain direct access to the National Verifier for
purposes of helping eligible consumers apply for the Affordable
Connectivity Program directly in the National Verifier.
21. Consistent with Federal grant regulations, all outreach
expenses funded through this grant program must be necessary and
reasonable for the performance of the award. Many parties commented on
the types of outreach expenses for which grant funds could be used. For
example, commenters advocate for the ability to use outreach grant
funds for a broad variety of costs. Specifically, commenters advocate
for funding the following types of costs: grant application,
compliance, and planning costs; advertising costs (e.g., traditional
advertising, social media, and text messaging campaigns); indirect
costs; travel costs for outreach (e.g., mileage, gas, and related
travel incidentals); grant administration costs (e.g., reporting,
evaluation, auditing); percentage of program costs for facilities to
cover overhead; outreach personnel costs; costs for hosting outreach
events (e.g., supplies, facility costs, incentives, and food and
refreshments for households attending outreach events); costs to create
and distribute materials such as toolkits, fliers, or train-the-trainer
guides that enable other organizations to promote the Affordable
Connectivity Program; costs for technology (e.g., tablets, laptop
computers, and printers for use at outreach events) to support
enrollment; costs to create, produce, and disseminate consumer outreach
materials such as mailers and posters; and costs to translate and
interpret ACP consumer outreach materials.
22. Given the broad range of expenses that could be necessary and
reasonable to provide meaningful, effective outreach to eligible
households, the Commission declines to prescribe in this final rule a
comprehensive list of allowable outreach expenses, but reiterate that
all outreach expenses funded through this grant program must be
necessary and reasonable for the performance of the award. To promote
fiscal responsibility and ensure that the vast majority of the grant
funding is targeted towards outreach activities, moreover, grants will
be subject to a five percent cap on management and administrative
expenses per individual award. In addition, the Commission makes clear
that the grant funding is intended for eligible costs of ACP outreach
for which applicants do not already have or expect to receive other
funding. Grant funds may not be used to replace (supplant) funds that
applicants have already obtained or expect to receive for the same
purpose. The Commission directs CGB, in consultation with WCB, OMD, and
OGC, to identify allowable and unallowable outreach costs for the grant
program, subject to the necessary and reasonable for the performance of
the award standard applicable to Federal grants, and to provide this
information in any NOFO issued for the grant program. In making these
determinations, CGB shall consider the goal and objectives and
available funding for the Outreach Grant Program, the need for fiscal
responsibility, and the restrictions on fundable costs in the
applicable statutes and regulations governing Federal grants. CGB shall
have the authority to make revisions to the types of allowable costs
during the grant program and may also cap certain types of expenses.
The Commission further notes that Federal grant regulations, which it
has adopted herein for this grant program, prohibit the use of Federal
funds for certain costs.
23. The Commission takes seriously its obligation to guard against
waste, fraud, and abuse in the use of Federal funds. To promote the
integrity of the Outreach Grant Program and the Affordable Connectivity
Program and to protect consumer choice among service providers, the
Commission adopts several important program safeguards. In addition,
costs funded through the outreach grants are subject to principles,
restrictions, and limitations under the statutes and regulations
applicable to Federal grant programs. For example, award recipients are
prohibited from using grant funds for entertainment or to purchase
alcohol, contracting with the enemy, and purchasing telecommunications
and video surveillance services or equipment provided by prohibited
companies.
24. The Commission requires that all grantees not favor any
particular service provider in performing outreach activities funded by
this Outreach Grant Program. Service providers stand to benefit
financially from the enrollment of additional eligible households in
the Affordable Connectivity Program. Accordingly, it would be
inappropriate to use Outreach Grant Program dollars in a manner
intended to specifically increase a particular provider's program
enrollment. Additionally, requiring grantees to maintain neutrality
among service providers will protect eligible households' right to
choose their ACP provider and the type of broadband service that best
fits their needs. Neutrality with respect to participating providers is
similarly a requirement for the ACP Navigator and Your Home, Your
Internet Pilots that were established in the ACP Order and the

[[Page 54315]]

Your Home, Your Internet Pilot Order, published elsewhere in this issue
of the Federal Register, respectively, and these same concerns equally
apply in the context of the Outreach Grant Program.
25. Consistent with this outreach neutrality requirement, grantees
may not direct, steer, incentivize or otherwise encourage eligible
households to enroll with a particular ACP provider or one of a
specific group of ACP providers (including, but not limited to,
broadband industry groups such as trade associations) when conducting
grant-funded outreach activities, and grantees must make clear that
eligible households may enroll with the ACP provider of their choice.
In addition, grantees may not use service provider-branded items such
as outreach materials, gifts, or incentives when conducting grant-
funded outreach activities. Grantees also may not offer or provide
consumers gifts or incentives provided by service providers when
conducting grant-funded outreach activities. Such gifts and incentives
could compromise the grantee's neutrality with respect to ACP service
providers and could also improperly influence eligible households'
choice of provider. Furthermore, grantees may not otherwise accept
funding in any form, including in-kind contributions, from a
participating provider or a specific group of participating providers
(including, but not limited to, broadband industry groups such as trade
associations) for the purpose of conducting grant-funded outreach
activities. The Commission recognizes that it may be beneficial in some
instances to have service provider representatives in attendance at
grant-funded outreach events to provide eligible households information
on the available service offerings to which they may apply their ACP
benefit. The Commission does not prohibit this, provided that all ACP
participating providers that provide service in the area where the
outreach is conducted have the same opportunity to attend and provide
information on their services to which the ACP benefit can be applied.
The Commission also does not prohibit including information in
connection with grant-funded outreach on how to find an ACP service
provider. Accordingly, outreach funded through the Outreach Grant
Program can direct eligible households to the Companies Near Me Tool
and can include a list of all providers serving the areas where the
outreach is performed. The Commission makes clear that this service
provider neutrality requirement does not preclude grantees from
otherwise collaborating with state agencies, public interest groups,
and non-profit organizations to carry out public awareness campaigns
that highlight the value and benefits of broadband internet access
service and the existence of the Affordable Connectivity Program, as
required under the Infrastructure Act.
26. The Commission also prohibits entities conducting outreach
funded through the Outreach Grant Program from providing any form of
compensation to individuals engaged in grant-funded outreach activities
based on the number of ACP applications or enrollments resulting from
their grant-funded outreach activities. The Commission's rules for the
Lifeline program similarly prohibit participating providers from
offering or providing commission or other compensation to enrollment
representatives or their direct supervisors that is based on the number
of consumers who applied for or are enrolled in Lifeline with that
particular provider. The ACP rules also prohibit participating
providers from offering or providing to enrollment representatives,
their direct supervisors, or entities operating on behalf of a
participating provider, any form of compensation that is based on the
number of ACP applications or enrollments with that provider, revenues
the provider receives or expects to receive through the Affordable
Connectivity Program, or any other compensation based on ACP
applications, enrollments, or other revenues. Based on the Commission's
experience administering the Lifeline program and the Affordable
Connectivity Program, it finds that allowing grantees to provide such
compensation in connection with grant-funded outreach activities could
compromise the integrity of the program and its goals. Therefore, the
Commission prohibits grantees from providing compensation to their
personnel, representatives, or others acting on their behalf based on
the number of ACP enrollments or applications submitted in connection
with outreach activities funded under the Outreach Grant Program.
27. Consistent with Federal regulations that the Commission has
made applicable to this grant program, it notes that grantees may not
``earn or keep any profit resulting from'' an Outreach Grant Program
award. For example, a grantee may not accept or receive payment or
other compensation (other than funded, allowable outreach expenses) in
exchange for hosting an outreach event or providing application
assistance to an ACP applicant at a specific site as part of the
Outreach Grant Program. The Commission also notes that grantees may not
charge low-income households a fee for educating them about or
providing them with assistance in submitting an ACP application. This
ensures that outreach grant partners do not make a profit from or
otherwise financially benefit from conducting ACP outreach through the
Outreach Grant Program.
28. To further promote program integrity, the Commission prohibits
the use of grant funds to support or obtain gifts or incentives to
offer or provide to encourage consumers to learn about, apply for, or
enroll in the Affordable Connectivity Program. At least one commenter
advocates for the ability to use grant funds to provide incentives to
encourage consumers to learn about and apply for the Affordable
Connectivity Program. The Commission finds that gifts and incentives
supported by or offered when conducting grant-funded outreach
activities may induce households to submit an ACP application that they
may not have otherwise submitted primarily to obtain the gift or
incentive or may encourage an ACP participating household to attempt
multiple enrollments to obtain the gift or incentive even though the
ACP benefit is limited to one per household. These outcomes may result
in waste, fraud, and abuse, and thus the Commission prohibits the use
of grant funds for these practices.
29. Outreach by a range of entities is critical to maximizing the
impact of the Affordable Connectivity Program. While the Infrastructure
Act authorizes the Commission to provide grants to outreach partners,
it does not specify the types of entities that qualify as outreach
partners. In the following, the Commission provides examples of the
types of entities that may be eligible to participate in the Outreach
Grant Program as grantees and subrecipients. The Commission encourages
entities of all types and diverse organizations, including
organizations serving, led, and/or owned by persons of color, persons
with disabilities, persons who live in rural or Tribal areas, and
others who are or have been historically underserved, marginalized, or
adversely affected by persistent poverty or inequality, to submit
applications for the Outreach Grant Program once a NOFO is released.
Like commenters, the Commission is also mindful of the importance of
equitable outreach efforts as it works to reach underserved communities
most impacted by the digital divide, and it reminds prospective
applicants of the Federal grant requirement to ``take all necessary
affirmative steps to assure that minority

[[Page 54316]]

businesses, women's business enterprises, and labor surplus area firms
are used when possible.'' The Commission also encourages entities
participating in the Commission's ACP Navigator and Your Home, Your
Internet Pilot Programs, through which limited trusted entities may be
granted access to the National Verifier to assist eligible households
to complete and submit the ACP application, to apply for outreach
grants to enhance their participation in those pilot programs.
30. The Infrastructure Act authorizes the Commission to provide
grants to outreach partners to encourage eligible households to enroll
in the Affordable Connectivity Program. At a minimum, then, outreach
partners must be capable of conducting ACP outreach, that is,
communicating or engaging with eligible low-income populations to
inform or educate them about the Affordable Connectivity Program, to
increase their awareness of the program, and to encourage or assist
them to apply for the program. Moreover, eligible entities must be able
to satisfy all legal requirements applicable to Federal grantees. For
instance, to be eligible, an entity must be able to comply with Federal
grant regulations adopted by the Commission, to obtain and report an
FCC Registration Number (FRN), and to register with, and maintain an
active registration with, the System for Award Management (SAM).
Additionally, entities seeking to participate must satisfy statutory
requirements, such as those restricting grant eligibility of entities
indebted to the United States. Accordingly, the Outreach Grant Program
will be open to entities capable of (a) directly or indirectly (through
subrecipients) conducting outreach to increase awareness of and to
encourage or assist with applying for the Affordable Connectivity
Program; and (b) complying with all applicable policies and rules
adopted herein, including the adopted requirements of 2 CFR part 200,
any policies and rules that may be subsequently adopted on delegated
authority by CGB to implement the Outreach Grant Program, and any other
applicable grant-related statutes and regulations. The Commission
strongly encourages eligible entities interested in applying for the
Outreach Grant Program to familiarize themselves with regulatory and
statutory requirements by closely studying applicable grant regulations
and the relevant NOFO.
31. The ACP FNPRM sought comment on the types of entities that
should be deemed eligible to apply for outreach grant funds and
proposed, at a minimum, that non-profit organizations and trusted
community organizations be eligible. Commenters support making the
Outreach Grant Program open to a wide range of public and non-profit
entities. The Commission agrees that the Outreach Grant Program should
generally be open to a variety of entities to encourage participation
from a diverse range of outreach partners, in terms of type and size,
and to maximize the reach and impact of the grant program. Consistent
with the record and the goal and objectives of the grant program, and
subject to the basic eligibility criteria in the document, governmental
and non-governmental entities are eligible for the grant program. Based
on the Commission's review of the record, the types of entities
eligible to participate in the Outreach Grant Program include, but are
not limited to:
<bullet> Tribal governments and subdivisions thereof, as well as
tribal organizations;
<bullet> State governments and subdivisions thereof (including the
District of Columbia and U.S. Territories);
<bullet> Local governments and subdivisions thereof (including
county, borough, municipality, city, town, township, parish, local
public authority, special district, intrastate district, council of
governments, and agencies or instrumentalities of multi-regional or
intra-state or local government);
<bullet> Public housing authorities;
<bullet> Social service providers (e.g., food banks, community
transportation, childcare);
<bullet> Education organizations, such as schools and other
institutions of higher education;
<bullet> Workforce development training organizations;
<bullet> Non-profit organizations;
<bullet> Community-based organizations (including faith-based
organizations and social service organizations);
<bullet> Community anchor institutions (e.g., healthcare providers
and healthcare organizations and libraries and library consortia);
<bullet> Public service organizations; and
<bullet> Consortia of the entities listed in the document.
Depending on the outreach target or audience for a particular NOFO
and where appropriate to meet a specific program goal or objective, CGB
is authorized to modify, expand, or limit the types of entities that
may be eligible to receive grant funds under a particular funding
opportunity in this grant program.
32. The ACP FNPRM asked whether the eligibility of non-profit
organizations should be limited to organizations with 501(c)(3) status.
This refers to section 501(c)(3) of the Internal Revenue Code, under
which an organization will be tax-exempt if it is ``organized and
operated exclusively for exempt purposes set forth in section
501(c)(3), and none of its earnings may inure to any private
shareholder or individual.'' The exempt purposes are charitable
(including ``relief of the poor, the distressed, or the
underprivileged'' and ``eliminating prejudice and discrimination''),
religious, educational, scientific, literary, testing for public
safety, fostering national or international amateur sports competition,
and preventing cruelty to children or animals. To qualify for 501(c)(3)
status, an organization must pass ``organizational'' and
``operational'' tests, and must not be an ``action organization,''
meaning that it ``may not attempt to influence legislation as a
substantial part of its activities and it may not participate in any
campaign activity for or against political candidates.''
33. Several commenters suggest limiting eligibility for non-profit
organizations to those with 501(c)(3) status. The National Digital
Inclusion Alliance (NDIA), for instance, ``urges the Commission to
consider only nonprofits with 501(c)(3) status as eligible grantees
under the program.'' Likewise, the Hawaii Broadband and Digital Equity
Office recommends giving award preference to 501(c)(3) non-profit
organizations but allowing non-profit organizations who lack that
status to be subgrantees. In contrast, the National Lifeline
Association (NaLA) contends that the Commission should ``avoid
categorical limitations on the types of entities that can participate''
and asserts that there is ``no reason to require grant recipients to be
charitable organizations with 501(c)(3) status.''
34. The Commission declines to limit the eligibility of non-profits
to organizations with 501(c)(3) status. As NDIA acknowledges, this tax
status has limited relevance to whether an applicant can perform
effective ACP outreach. The commenters who suggest the 501(c)(3)
limitation do not explain why it is necessary or explain how this
limitation would support the purposes of the Outreach Grant Program.
Making 501(c)(3) status an eligibility criterion could exclude
organizations that are capable of engaging in effective outreach
efforts but are outside the scope of the 501(c)(3) category, such as
social welfare organizations and civic leagues. The Commission also
notes that 501(c)(3) status is not necessary to evaluate an applicant's
general eligibility to receive Federal grants or ability to comply with
the applicable

[[Page 54317]]

Federal grant regulations--Federal grant regulations require a robust
risk assessment of all Federal grant applicants. Further, numerous
other Federal grants are open to non-profit organizations that do not
have 501(c)(3) status with the Internal Revenue Service. For these
reasons, the Commission does not limit the eligibility of non-profits
to organizations with 501(c)(3) status, but it does authorize CGB to
require an applicant to provide proof of non-profit status as
appropriate.
35. The Commission also declines to categorically exclude for-
profit organizations from participation in the grant program. The
California Emerging Technology Fund (CETF) argues that private, for-
profit companies should be ineligible entities for outreach grants. In
contrast, Centri Tech and the U.S. Chamber of Commerce advocate
eligibility for both non-profit and for-profit entities, like minority
businesses. The Commission agrees that there may be some for-profit
entities that could provide meaningful outreach, such as healthcare
providers or minority businesses, and CETF does not identify any reason
to exclude such entities at the eligibility stage. The Commission
reiterates, however, that grantees may not make a profit from or
otherwise financially benefit from conducting ACP Outreach through the
Outreach Grant Program.
36. Although the illustrative list of eligible entity types
incorporates a wide range of organizations, to promote the integrity of
the grant program, the Commission concludes that broadband providers
and their subsidiaries, affiliates, representatives, contractors, and
agents will not be eligible to participate in the Outreach Grant
Program or receive awards, either as grantees, pass-through entities,
or subrecipients. Given that broadband providers individually benefit
from customer enrollments in the Affordable Connectivity Program,
awarding grant funds to help broadband providers increase awareness of
and enrollments in the Affordable Connectivity Program presents a
significant conflict of interest and would not be a fiscally
responsible use of Federal funds. Excluding broadband providers from
receiving grant awards would not hinder the goal or objectives of the
grant program. Broadband providers that participate in the Affordable
Connectivity Program are already obligated by statute and regulation to
engage in ACP outreach efforts and should not receive Federal funds to
accomplish these obligations. Additionally, because broadband providers
benefit financially from ACP enrollment, they already have sufficient
incentive to engage in outreach.
37. Further, the Commission is not persuaded by NaLA that it should
permit broadband industry trade associations to receive grant awards.
Although the Commission agrees with NaLA that its approach to program
eligibility should be ``inclusive,'' broadband provider trade
associations present conflict of interest concerns that charitable non-
profit organizations, for instance, do not. Just as the Commission
finds that permitting broadband providers to participate in the
Outreach Grant Program presents a conflict of interest, it finds that
the same conflict of interest is inherent where an industry association
or trade association made up of or representing the same broadband
providers may be seeking government funds to increase its members'
consumer enrollments in the Affordable Connectivity Program. Therefore,
the Commission also prohibits broadband industry groups and trade
associations that represent broadband providers from receiving awards
through the Outreach Grant Program, either as grantees, pass-through
entities, or subrecipients.
38. Additionally, consistent with the Federal grant regulations,
entities that are debarred, suspended, or otherwise excluded from or
ineligible for participation in Federal assistance programs or
activities will be ineligible for participation in the Outreach Grant
Program. The Commission currently has pending a notice of proposed
rulemaking to adopt and implement the Office of Management and Budget
(OMB) Guidelines for suspension and debarment (non-procurement) in 2
CFR part 180, and it asked for comment about the implementation of that
part in the ACP FNPRM. Commenters did not address suspension and
debarment procedures in response to the ACP FNPRM. To mitigate the
potential for waste, fraud, and abuse in the grant program, the
Commission determines here that those rules, should they be adopted,
will apply to the Outreach Grant Program. Additionally, certain
entities may be ineligible by statute. For example, 501(c)(4) non-
profit organizations that engage in lobbying activities are ineligible
for Federal grants, as are organizations that are indebted to the
United States and have judgment liens filed against them.
39. CGB has extensive experience and expertise in conducting
outreach and working with a range of outreach partners, including most
recently for the Affordable Connectivity Program and the Emergency
Broadband Benefit Program (EBB Program). The Commission directs CGB to
develop, administer, and manage the Outreach Grant Program in
compliance with the Federal laws and regulations applicable to Federal
grant programs, and consistent with the program goal and objectives and
requirements the Commission establishes in this final rule. The
Commission modifies Sec. Sec. 0.11, 0.141, and 0.231 of the
Commission's rules to reflect CGB's and OMD's additional
responsibilities for the grant program and related delegations of
authority. In carrying out these delegated functions, CGB shall consult
with WCB, OMD, and OGC as appropriate to ensure that the grant program
is in compliance with the applicable statutes and regulations for
Federal grant programs and the Affordable Connectivity Program, and to
ensure that the grant program is otherwise meeting the program
objectives, goals and requirements outlined in this final rule. The
Commission further directs CGB, in coordination with OMD, OEA, and OGC
as needed, to engage with the National Telecommunications and
Information Administration, and other Federal agencies that administer
broadband funding programs to promote information sharing and
collaboration across broadband-related investments across the Federal
Government and to avoid unnecessary duplication.
40. Although the Infrastructure Act authorizes the Commission to
issue grants to outreach partners, the Infrastructure Act does not
specify a budget for these grants, leaving the Commission with
authority to determine how much of the overall ACP appropriation should
be expended on this grant program. In the ACP Order, the Commission
established a budget of up to $100 million for all outreach for the
Affordable Connectivity Program, which includes the Outreach Grant
Program as well as the Commission's own non-grant outreach efforts
permitted by the Infrastructure Act. This budget recognizes the need
for extensive outreach for the Affordable Connectivity Program, while
also leaving ample funds from the total $14.2 billion ACP budget to
provide the ACP benefit to as many eligible households as possible for
as long as possible. As explained in the ACP Order, the $100 million
outreach budget reflects the Commission's consideration of the
estimates for the costs of Commission outreach for the Affordable
Connectivity Program and the Commission's costs for Digital Television
Transition outreach (which included broad paid media campaigns).
41. The allocation of the $100 million budget for ACP outreach
takes into consideration the costs of the

[[Page 54318]]

Commission's outreach for the Digital Television Transition and EBB
Program and comments in the record concerning the costs of outreach
activities. This funding allocation will enable CGB to provide grant
awards to respond to the need for extensive, meaningful outreach by
numerous, diverse eligible outreach partners, while also enabling CGB
to conduct its own outreach as authorized in the Infrastructure Act.
The Commission makes clear that CGB is not required to spend this full
amount. CGB is authorized, in coordination with OMD, to decide if and
when to reallocate any remaining unused funds from individual outreach
grants for any outreach allowed under the statute or none at all.
42. The Commission directs CGB to designate up to $60 million of
the ACP outreach budget for competitive allocation to eligible
entities. Of the $60 million set-aside for competitive allocation to
eligible entities, $27 million will be reserved for States and U.S.
Territories, with a minimum allocation to grantees in each State and
U.S. Territory for ACP outreach activities, consistent with this final
rule and the program's goal and objectives. In establishing the minimum
funding allocation to each State and U.S. Territory, CGB shall allocate
an equal amount of funding for each state, the District of Columbia,
and Puerto Rico, but may allocate a lesser minimum amount to the
remaining U.S. Territories. To facilitate coordination, States and U.S.
Territories may choose, but will not be required, to establish a single
point of contact to, among other things, coordinate among entities
within the State or U.S. Territory that have relevant outreach
responsibilities related to implementing the Outreach Grant Program.
The Commission further directs CGB to designate a minimum of $10
million of the ACP outreach budget for competitive allocation to
eligible Tribal governments and Tribal organizations, including
Tribally Designated Housing Entities, to be used specifically for ACP
outreach to persons who live on qualifying Tribal lands as defined in
Sec. 54.1800(s) of the Affordable Connectivity Program rules.
43. To maximize the impact of the dollars allocated for ACP
outreach, the Commission seeks to build upon existing initiatives that
it has already determined will support the goal and objectives
established in this final rule to increase awareness of and
participation in the Affordable Connectivity Program; specifically, the
ACP Navigator Pilot and Your Home, Your Internet Pilot Programs.
Appropriately targeted outreach funding could further the scope of
outreach and enrollment activities conducted by participants in these
pilots, which in turn would promote the success of these pilots and
provide the Commission with valuable information on what is needed to
increase awareness and aid in the enrollment of targeted populations,
including households that participate in Federal Public Housing
Assistance Programs. In establishing the parameters of both pilots, the
Commission will inform potential participants that are eligible for
grants of its intent to make available outreach grant funds to support
their pilot program activities, and will encourage and enable eligible
entities participating in one or both of these pilots to apply for
Outreach Grant Program funding. Therefore, the Commission directs CGB
to set aside up to $5 million each, for a total of up to $10 million of
the ACP outreach budget, for outreach grants specifically for eligible
entities participating in either or both the ACP Navigator or Your
Home, Your Internet Pilot Programs. The Commission makes clear,
however, that CGB is not required to award this full amount to pilot
participants. The Commission also makes clear that while it directs CGB
to set aside a specific funding allocation solely for grants to
eligible entities participating in Your Home, Your Internet or the ACP
Navigator Pilot, eligible entities participating in both or either of
these pilots are not limited to applying for that targeted funding, and
may apply for a grant in any funding opportunity for which they
qualify.
44. The Commission expects that the allocated budget established
today for the Outreach Grant Program will support extensive, meaningful
outreach by numerous eligible outreach partners. The Commission
acknowledges that certain commenters advocate for a total budget larger
than $100 million for outreach grants and other outreach. However, the
Commission declines to increase this budget. The $100 million budget
the Commission set for all ACP outreach reflects the critical need for
extensive ACP outreach and the fact that the Affordable Connectivity
Program has a limited budget, while also ensuring that ample funding
remains for providing broadband and device discounts to eligible ACP
households for as long as possible. Increasing the total budget for ACP
outreach, including the grant program, as these commenters suggest
would reduce the amount of funding available to provide the ACP benefit
to as many eligible households for as long as possible.
45. The Commission otherwise declines in this final rule to
prescribe a specific number of funding opportunities for the Outreach
Grant Program. CGB should determine how quickly and in what amounts to
disperse funding across the duration of the Outreach Grant Program. The
Commission also directs CGB, in coordination with WCB and OMD, to
decide whether to make the grant funds available through one or
multiple NOFOs. CGB shall also determine the size of each grant awarded
to each eligible outreach partner within the budget limit the
Commission establishes herein based on an application process that
complies with the applicable Federal grant regulations. The Commission
notes that some commenters advocate for front-loading the grant funds
to maximize the impact of the outreach grants in the early years of the
Outreach Grant Program where the need for outreach is likely to be the
greatest. The Commission agrees that this would be an appropriate
approach for CGB to consider in deciding funding allocations, including
the allocation of the funding set aside for pilot participants, and
allocation for competitive grants to eligible entities, to include set-
asides to States and U.S. Territories, as well as Tribal organizations,
for this Outreach Grant Program. To determine the funding allocation
across the grant program, including whether to issue one or multiple
NOFOs, the Commission directs CGB to consult with OMD, WCB, OEA, and
OGC as appropriate to ensure compliance with the applicable statutes
and regulations governing Federal grant programs and the requirements
the Commission establishes in this final rule, to also ensure
consistency with the Outreach Grant Program's goal and objectives, and
to further its interest in maximizing the impact of the grant funds as
early as practicable in the course of the Affordable Connectivity
Program.
46. The ACP FNPRM sought comment on whether the grant program
should be a one-time funding opportunity or a multiple-year program.
Certain commenters advocate for allowing eligible outreach partners to
apply for grant funds throughout the Affordable Connectivity Program.
The Commission permits CGB to continue to make grant awards until the
Affordable Connectivity Program's end is announced consistent with any
wind-down processes established by WCB, or until all grant funds
allocated for outreach in this final rule is disbursed. When the ACP
FNPRM was released, the Commission capped outreach funding to $100
million over the next five years.

[[Page 54319]]

However, increased subscriber numbers could accelerate the depletion of
the Affordable Connectivity Fund prior to the allotted 5-year-period
for outreach spending. CGB shall coordinate with WCB on the wind-down
process to be established pursuant to the direction the Commission
provided in the ACP Order. At the point when the forecasted end of the
Affordable Connectivity Program is announced pursuant to those wind-
down procedures, the Commission expects that new grantees would not
have sufficient time to implement and execute new outreach efforts, and
any new grant awards would be highly unlikely to have meaningful impact
on increasing awareness of and enrollment in the Affordable
Connectivity Program. Accordingly, the Commission finds that it would
not be fiscally responsible to issue new grant awards after the
forecasted end of the Affordable Connectivity Program is announced
pursuant to the wind-down procedures established by WCB, unless
additional spending is otherwise authorized by Congress. To effectuate
the Commission's direction here, CGB is authorized to cancel, withdraw,
or set aside any open NOFO and to cease processing any grant
applications once the forecasted end of the ACP is announced. The
deadline the Commission establishes for making new grant awards
provides CGB flexibility to continue to make new grant awards for as
long as practicable, while also ensuring that grant funds are being
used in a fiscally responsible manner. Entities that receive grant
awards may continue to use their grant funds for outreach until ACP
enrollments cease, pursuant to any ACP wind-down procedures established
by WCB. To the extent that uncommitted funding remains in the Outreach
Grant Program budget or awardees have unused grant funds after the end
of the Outreach Grant Program, but before the end of the Affordable
Connectivity Program, the remaining funds may be allocated back to the
larger ACP budget to pay for broadband service and connected devices.
47. As explained in the ACP FNPRM, 2 CFR part 200 outlines numerous
requirements for the administration and management of Federal grant
programs. As required under Federal grant regulations, the Commission
formally adopts and implements the Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards. In the
following, the Commission also provides additional guidelines and
requirements for the development, administration, and management of the
grant program. CGB must develop, administer, and manage the Outreach
Grant Program in compliance with the applicable Federal laws and
regulations for grant programs and in compliance with the goal and
objectives and any other requirements that the Commission has
established for the Outreach Grant Program. This authority includes
developing and administering, and the issuance of NOFO(s), establishing
terms and conditions of each grant, adopting, modifying, and/or
clarifying implementing regulations, and issuing orders, public
notices, and/or publicly available instructions provided to applicants
and/or grantees. Further, CGB shall consult with OMD, WCB, and OGC as
appropriate to ensure compliance with these requirements and the
requirements outlined in this final rule.
48. Federal agencies administering Federal grant programs are
required to release a NOFO for grant opportunities. The NOFO provides
detailed information about the specific grant opportunity, including
information about the amount of funding available, eligible entities,
fundable expenses and activities, application and evaluation process,
reporting requirements, and other rules and requirements for the grant
opportunity. The Commission directs CGB to develop and issue a NOFO for
any funding opportunity for the Outreach Grant Program, in compliance
with the applicable Federal regulations concerning NOFOs and the
requirements the Commission establishes in this final rule, and
consistent with the goal and objectives for the Outreach Grant Program.
CGB shall consult with WCB, OGC, and the Office of the Inspector
General (OIG) as appropriate to ensure that any NOFO issued for the
grant program complies with the applicable Federal statutory
requirements and regulations and any rules, requirements and policies
set forth in this final rule.
49. The authorizing statute and Federal grant regulations do not
require the Commission to adopt a matching requirement for the grant
program. Accordingly, the Commission has the discretion to determine
whether to require grant recipients to provide matching funds or
contributions. Benefits Data Trust opposes a match requirement, while
other commenters discuss the significant budget limitations faced by
many of the types of organizations that are eligible for the grant
program.
50. Based on the Commission's careful review of the record and in
consideration of the urgent need for outreach by a diverse range of
eligible outreach partners, it finds that a matching requirement for
the Outreach Grant Program would likely thwart the potential
effectiveness and impact of the grant program. The record demonstrates
that many prospective eligible outreach partners are already facing
significant budget constraints. Therefore, a matching requirement for
the Outreach Grant Program would likely discourage or delay
applications from potential outreach partners, particularly smaller
organizations. A matching requirement may also lead potential outreach
partners to design and propose more limited-scope outreach efforts to
ensure they have sufficient funding or resources to satisfy a matching
requirement. These outcomes would potentially minimize the number of
eligible households touched by grant-funded outreach and, thus, would
not serve the goal or objectives of the Outreach Grant Program.
Accordingly, the Commission declines to adopt a matching requirement
for this grant program. Consistent with this decision, grantees that
are pass-through entities also may not require a match from
subrecipients. While the Commission declines to adopt a matching
requirement as a condition of receiving an outreach grant, it
recognizes that matching funds can maximize the effectiveness and
impact of the limited outreach grant program funds. Accordingly, as
explained in the following, for purposes of prioritizing grant awards,
the Commission directs CGB to consider whether the applicant proposes a
cost match or cost share, among other factors.
51. The Infrastructure Act does not specify the type of grant that
the Commission may issue for the grant program. Therefore, the
Commission has the authority to make this determination. For Federal
grants, the potential types of grants include, but are not limited to,
discretionary grants (which generally require a competitive process)
and formula grants (which generally provide set amounts of funding
based on specific criteria). The Commission concludes that competitive
funding opportunities would best further the goal and objectives of the
Outreach Grant Program, encourage participation by a diverse range of
outreach partners, and maximize the impact of the grant program as
early as practicable. The Commission also concludes that it would be
appropriate to issue more than one NOFO. To the extent that more than
one funding opportunity is released for this grant program, it will be
necessary to allocate

[[Page 54320]]

funding for each funding opportunity consistent with the allocations
specified in this final rule or as it may be necessary to set award
ceilings or floors.
52. The Commission directs CGB to decide whether funding will be
released through one or more funding opportunity, determine the
allocation of funding for any funding opportunity under the Outreach
Grant Program consistent with the allocations specified in this final
rule, and establish minimum funding amounts for States and U.S.
Territories or award floors or ceilings to the extent necessary. CGB
may roll over unused funding from one set-aside to another, or from one
funding opportunity to another. CGB's determinations on the number of
funding opportunities and related funding allocations must be
consistent with the goal and objectives of the grant program and must
also promote the Commission's interests in maximizing the impact of the
Outreach Grant Program as early as practicable and encouraging
participation by a diverse range of outreach partners across diverse
geographic regions. To make these determinations, the Commission
directs CGB to consult with WCB, OMD, OEA, and OGC as appropriate to
ensure compliance with Federal grant laws and regulations and
requirements in this final rule, and to ensure consistency with the
goal and objectives of this grant program. Any NOFO issued for this
grant program shall provide specific detail on the grant opportunity
including, but not limited to, the type of grant, the total amount of
funding for the grant opportunity, and any ceilings and floors for the
grant opportunity.
53. The ACP FNPRM asked whether use of outreach grant funds should
be limited to named grantees or pass-through entities, or whether
subgrantees, that is, subrecipients, could use funds for outreach. The
Commission also sought comment on the prevalence of subrecipient models
in Federal grant programs, and the advantages and disadvantages of a
subrecipient model. Many commenters advocate for allowing pass-through
entities to use subrecipients to conduct outreach under the Outreach
Grant Program, and explain that the subrecipient model has proven
highly effective in other contexts. According to commenters, a
subrecipient model facilitates the participation of smaller entities
that may not have the capacity or resources to apply for grants and
comply with reporting requirements and allows for leveraging pass-
through entity resources and expertise.
54. Based on the Commission's careful consideration of the record,
it agrees that allowing pass-through entities to use subrecipients
would best promote the goal and objectives of the Outreach Grant
Program and maximize the potential scope and impact of grant-funded
outreach. Allowing the subrecipient model would also facilitate the
administration of the Outreach Grant Program by reducing the number of
grants awarded and requiring management. Consequently, the Commission
directs CGB to permit the use of subrecipients, where appropriate
(e.g., grant awards to a national organization or to a state or local
government), for funding opportunities for the Outreach Grant Program.
Any subrecipients must satisfy the eligibility requirements the
Commission establishes in this final rule. To ensure full transparency
regarding any subrecipients, grantees who are pass-through entities
must inform CGB of which subrecipients they use, as well as the amount
of each subaward. Pursuant to Federal grant regulations, pass-through
entities are responsible for conducting risk assessments of potential
subrecipients, monitoring their subrecipients and ensuring their
subrecipients' compliance with the requirements of applicable Federal
laws and regulations and this grant program. Consistent with the
delegations of authority in this final rule, CGB, in consultation with
OMD, may require pass-through entities to have additional policies and
procedures in place to ensure subrecipient compliance with the grant
requirements, terms and conditions.
55. The ACP FNPRM also sought comment on the application process
and requirements for the grant program, noting that in previous
comments, the National Digital Inclusion Alliance proposed that the
application process be as minimally burdensome as possible, especially
for small organizations that have limited capacity to participate in
large Federal grant programs. This view is shared by many other
commenters, who urge the Commission to avoid creating a program so
complex that it discourages applicants. Commenters also advocate for an
``accessible and non-burdensome application process.'' The Commission
acknowledges commenters' desire for minimal administrative burden for
applicants and agree that an overly complex application process could
deter applicants who could provide meaningful outreach.
56. The Commission directs CGB to develop an application process,
which may include relevant application templates and any supplements as
appropriate, for the Outreach Grant Program in compliance with the
applicable Federal guidance and regulations and consistent with the
goal and objectives of the grant program. Among these regulations, 2
CFR 200.207, as implemented by the Commission, requires use of standard
OMB-approved grant applications and provides for agency use of any
supplemental application requirements. CGB may determine the types of
eligible entities outlined in this final rule that may be eligible for
a particular funding opportunity for the grant program. To develop such
an application, the Commission directs CGB to consult with WCB, OMD,
and OGC as appropriate to ensure compliance with the applicable Federal
laws and regulations and to also ensure consistency with the program
goal and objectives. In developing the application process for the
grant program, the Commission further directs CGB to carefully balance
minimizing the burden to potential applicants (as discussed in the
comments) and the need for sufficient information to allow reviewers
effectively to analyze applications and comply with Federal grant
regulations, and select applications best positioned to conduct
effective, meaningful outreach.
57. Any application for the grant program must collect information
sufficient for meaningful review. At a minimum, applicants must submit
the following information as part of an application package: (a)
project summary; (b) detailed budget; (c) budget narrative supporting
the budget and demonstrating that it is consistent with the
requirements in the NOFO; and (d) any mandatory forms for Federal
grants. As part of the project summary, applicants will provide: a
description of the geographic areas that will be targeted and served
through the proposed outreach; constituencies intended to be targeted
and served, to include members of an unserved or marginalized
community; an estimated number of households or individuals to be
targeted; whether the outreach will target communities that have low
ACP participation rates; description of the applicant's role in the
community which it is serving; description of the applicant's outreach
goals and milestones and for their proposed outreach; and a description
of whether the applicant is proposing a cost-match or cost share for
their proposed outreach. These and additional project summary
information requirements will be captured in detail as part of the NOFO
release. To guard against duplicative funding and ensure that outreach
grant program funding will be

[[Page 54321]]

awarded for new outreach efforts and not outreach efforts for which an
applicant already has funding or expects to receive funding, applicants
will also be required to disclose support or funding for outreach
received from broadband providers and other sources, or certify that
they received no such support or funding, and to explain the need for
additional funding from the Outreach Grant Program if they have already
received, are receiving, or expect to receive other support or funding
for ACP outreach. The Commission directs CGB to work with OEA to
collect information on how grantees will gather data and track metrics
related to meeting the Outreach Grant Program's goal and objectives.
CGB may require any additional information necessary to evaluate grant
applications and ensure compliance with the applicable Federal laws and
regulations applicable to grants. CGB may also issue more than one
application process or template to accommodate different types of
grants, or different grant opportunities under the grant program, as
necessary.
58. Red Light Rule. The Outreach Grant Program will be subject to
the red light rule that the Commission implemented to satisfy the
requirements of Debt Collection Improvement Act of 1996. Under the red
light rule, the Commission will not take action on applications or
other requests by an entity that is found to owe debts to the
Commission until full payment or resolution of that debt. If the
delinquent debt remains unpaid or other arrangements have not been made
within 30 days of being notified of the debt, the Commission will
dismiss any pending applications. Consistent with practices in the
Lifeline program and other programs such as the Telecommunications
Relay Service, the red light rule is not waived for the Affordable
Connectivity Program and its Outreach Grant Program. If a prospective
grant applicant is on red light, it will need to satisfy or make
arrangements to satisfy any debts owed to the Commission before its
application and/or election notice will be processed. The Commission
directs CGB and OMD to ensure that a process is in place to check an
entity's red light status prior to processing a grant application,
disbursement, or other request from the entity consistent with the red
light rule.
59. Treasury Offset. Grant outreach grantees will be subject to
Treasury Offset. The Treasury has several collection tools, including
its offset program, known as the Treasury Offset Program (TOP), through
which it collects delinquent debts owed to Federal agencies and states
by individuals and entities, by offsetting those debts against Federal
monies owed to the debtors. Grant recipients that owe past-due debt to
a Federal agency or a state may have all or part of their payments
offset by Treasury to satisfy such debt. Prior to referral of its debt
to Treasury, entities are notified of the debt owed, including
repayment instructions. If the referred debt of a grantee remains
outstanding at the time of a payment by the U.S. Treasury from the ACP
Fund to that grantee, the grantee will be notified by Treasury that
some or all of its payment has been offset to satisfy an outstanding
Federal or state debt. Potential grant applicants who owe past due
Federal or state debts are encouraged to resolve such debts and in
doing so, consult the TOP Frequently Asked Questions for the Public,
available at <a href="https://fiscal.treasury.gov/top/faqs-for-the-public.html">https://fiscal.treasury.gov/top/faqs-for-the-public.html</a>,
for delinquent debt that has been referred to Treasury, and for
delinquent debt that the Commission has not yet referred to Treasury,
consult <a href="https://www.fcc.gov/general/red-light-frequently-asked-questions">https://www.fcc.gov/general/red-light-frequently-asked-questions</a>.
60. Additional Requirements. To be eligible to receive
disbursements from the Affordable Connectivity Fund, grant applicants
must obtain and report an FRN. Persons or entities doing business with
the Commission are required to obtain an FRN, a unique identifier that
is obtained through the Commission Registration System. Participating
grant applicants must obtain an FRN if they do not already have one and
report it as directed by the Commission.
61. SAM Registration. All entities that intend to apply for a grant
must also register with the SAM. SAM is a web-based, government-wide
application that collects, validates, stores, and disseminates business
information about the Federal Government's partners in support of
Federal awards, grants, and electronic payment processes. With data in
SAM the Commission has an authoritative source for information
necessary to provide funding to applicants and to ensure accurate
reporting pursuant to the Federal Funding Accountability and
Transparency Act of 2006, as amended by the Digital Accountability and
Transparency Act of 2014 (collectively the Transparency Act or FFATA/
DATA Act). Only grantees registered in SAM with an active registration
will be able to receive reimbursement from the Affordable Connectivity
Fund. Furthermore, participating grantees may be subject to reporting
requirements. To the extent that participating grantees subaward the
grant, as defined by FFATA/DATA Act regulations, such grantees may be
required to submit data on those subawards.
62. Do Not Pay. Pursuant to the requirements of the Payment
Integrity Information Act of 2019, the Commission must ensure that a
thorough review of available databases with relevant information on
eligibility occurs to determine program or award eligibility and
prevent improper payments before the release of any Federal funds. To
meet this requirement, the Commission will make full use of the Do Not
Pay system administered by the Treasury's Bureau of the Fiscal Service
as has done for other payments from the Affordable Connectivity Fund.
If a check of the Do Not Pay system results in a finding that an ACP
grant recipient should not be paid, the Commission will withhold
issuing commitments and payments. The Commission may work with the
grant recipient to give it an opportunity to resolve its listing in the
Do Not Pay system if the grantee can produce evidence that its listing
in the Do Not Pay system should be removed. However, the grant
recipient will be responsible for working with the relevant agency to
correct its information before payment can be made by the Commission.
63. The Commission directs CGB, in coordination with WCB, OGC, OEA,
and OMD, to develop a robust application review process to ensure that
the grant awards maximize the impact of grant funds on ACP awareness
and participation among qualifying low-income households and also
ensure the fiscally responsible use of government funds. To ensure
compliance with the applicable Federal statutes and regulations, the
review process must include, at a minimum, compliance, merit, and risk
assessment components. Compliance review involves assessing whether
application materials are complete and comply with NOFO requirements.
Merit review involves objectively evaluating, using review and scoring
criteria outlined in the NOFO, an applicant's outreach proposal for
likely efficacy in meeting the Outreach Grant Program's objectives.
Risk assessment review involves examining an applicant's fiscal
stability and operational capabilities, including the risk associated
with allowing the applicant to expend Federal funds. In developing the
application review process, CGB shall consult with WCB, OMD, OEA, and
OGC as appropriate to ensure compliance with the applicable Federal
laws and regulations for grant programs, and to otherwise ensure

[[Page 54322]]

consistency with the goal and objectives of the grant program.
64. The ACP FNPRM sought comment on whether certain grant
applications should be prioritized and evaluated. Based on the
Commission's review of the record and experience administering the
Affordable Connectivity Program, and its predecessor the EBB Program,
it concludes that prioritizing certain applications will best promote
the goal and objectives of the Outreach Grant Program, ensure that
grant funding is targeted to where it will have the greatest impact on
addressing the digital divide, and maximize the impact and
effectiveness of the Outreach Grant Program funding. In evaluating
applications, the Commission directs CGB, at a minimum, to prioritize
applications based on the following criteria: (1) the extent to which
an applicant would target unserved low-income households or individuals
(i.e., households or individuals that are not currently on a low-income
broadband plan or that do not have broadband service); (2) the extent
to which an applicant would target outreach in communities that have
low ACP participation rates (including people of color, persons with
disabilities, persons who live in rural or Tribal areas, and others who
are or have been historically underserved, marginalized, or adversely
affected by persistent poverty or inequality); and (3) whether an
applicant proposes a cost-share or cost match. In evaluating grant
applications from state governmental entities or territorial
governmental entities, CGB may also consider prioritizing grants based
on whether the state or territory has entered into or has committed to
enter into a Computer Matching Agreement with USAC for purposes of
verifying the eligibility of low-income consumers for the Affordable
Connectivity Program. The prioritization factors outlined in this final
rule and any other prioritization and evaluation factors shall be
identified in the NOFO(s).
65. Commenters suggest additional ways to prioritize or select
applications to maximize the impact of the grant funds. CGB may decide
to use additional prioritization factors to promote the goal of the
Outreach Grant Program and maximize the reach, effectiveness, and
impact of the grant funds. Consistent with the record, when developing
prioritization criteria and evaluation criteria, CGB may also consider,
for instance, an applicant's experience, ties to local communities,
multilingual capabilities, ACP and digital equity experience, all of
which may be relevant to the likelihood of success of an applicant's
outreach plan. The following are examples of prioritization or
evaluation factors that may be appropriate for CGB to use for purposes
of maximizing the impact and effectiveness of the outreach grant funds:
<bullet> Experience with, and past success in, conducting outreach
regarding government programs and resources, particularly providing
resources and directing services (such as ACP application assistance)
and education to people of color, persons with disabilities, persons
who live in rural or Tribal areas, and others who are or have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality;
<bullet> Existing relationships with the communities grant
applicants expect to target (e.g., as ``trusted messengers''), or the
ability to readily establish those relationships, particularly
relationships with people of color, persons with disabilities, persons
who live in rural or Tribal areas, and others who are or have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality;
<bullet> Participation in the Commission's ACP Navigator or Your
Home, Your internet Pilot Programs;
<bullet> Familiarity with the Affordable Connectivity Program and
experience with or knowledge of digital equity and connectivity issues;
<bullet> Experience with or capability of providing multilingual
outreach;
<bullet> A plan and/or demonstrated capacity to collect data and
track metrics in order to comply with reporting requirements;
<bullet> Ability to provide outreach to multiple categories of
outreach targets;
<bullet> Experience working with subrecipients with relationships
to targeted communities, if an applicant intends to pass through awards
to subrecipients.
66. The ACP FNPRM also sought comment on whether and how grants
should be distributed to achieve geographic diversity and diversity in
recipient organization sizes and types. A few commenters advocate
allocating grants based on geographic diversity. Others recommend
ensuring funding to entities of various sizes. The Commission agrees
that a diversity of award recipients and geographic areas would further
the interest in nationwide ACP enrollment and outreach to target
populations. Accordingly, in developing and administering the grant
program, the Commission directs CGB to consider how best to ensure that
grant awards are made to diverse geographic regions and entity sizes or
types, whether through the funding announcement or evaluation process,
and to consult with OEA and WCB to make these determinations.
67. The Infrastructure Act does not establish a performance period
for the outreach grants. In the ACP FNPRM, the Commission sought
comment on an appropriate performance period for the outreach grants.
The Commission directs CGB to determine the performance period for any
grant opportunity issued for the grant program. The Commission notes
that many commenters indicated that a one-year performance period would
not provide grantees sufficient time to develop and implement their
proposed ACP outreach, and that a more than one-year performance period
is more likely to incentivize applications. To determine an appropriate
performance period for the outreach grants, the Commission directs CGB
to consider the time frames needed to implement and execute meaningful
outreach efforts based on its own outreach experience and those of
existing outreach partners. The Commission further directs CGB to take
into account the ACP budget projections to ensure that the performance
period maximizes the impact of grant funds as early as practicable.
Consistent with Federal regulations, any NOFO issued for the Outreach
Grant Program will specify the performance period. As such, applicants
must submit a grant application with a budget spend or draw down plan
to cover the period of performance, demonstrating a plan to execute
outreach efforts and support grant award closeout activities within the
established period of performance.
68. Federal agencies administering grant programs are required to
establish performance measures to ``show achievement of program goal
and objectives, share lessons learned, improve program outcomes, and
foster adoption of promising practices'' and establish reporting
requirements. The ACP FNPRM sought comment on the performance measures
and reporting requirements for the grant program. Given its extensive
experience conducting outreach, the Commission directs CGB to develop
performance measures and reporting requirements for the Outreach Grant
Program in compliance with the applicable Federal regulations. The
Commission directs CGB to consult with OEA, OMD, and WCB to determine
the appropriate performance measures as well as data collection and
reporting requirements and related deadlines for this grant program,
and to ensure the metrics and reporting requirements comply with the

[[Page 54323]]

applicable Federal regulations, are consistent with the goal and
objectives for the grant program, are tailored to accommodate a range
of fundable outreach, and support a fiscally responsible administration
of the program. The Commission further directs USAC to provide
Commission staff upon request Affordable Connectivity Program data
relevant to assessing the performance of the Outreach Grant Program, as
determined by CGB, WCB, OEA and OMD.
69. To develop the performance measures and related grantee
reporting requirements, CGB should strike an appropriate balance
between the need for robust metrics and reporting requirements to
assess the performance of the grant program and need for financial
reporting, and the administrative burden to grantees. The Commission
notes that many commenters caution against overly burdensome reporting
requirements, and advocate for reporting on no more than an annual
basis. In addition, many commenters stress the need for any performance
measures to take into account the various types of outreach that may be
funded through the grant program--metrics that may be appropriate for
one type of outreach (e.g., in-person events) may not be appropriate
for other types of outreach (e.g., paid media). A few commenters also
recommend collecting qualitative (such as personal stories) as well as
quantitative data to measure performance. At a minimum, the Commission
requires grantees to report on the outreach activities they performed
with the grant funds, how the grant funds were spent, and the
effectiveness of those outreach activities. Consistent with the
applicable Federal regulations, any NOFO that is released for the grant
program will provide specific detail on the performance measures and
reporting requirements and any reporting deadlines. Grantees must
comply with progress and financial reporting requirements for the grant
program, as outlined in the NOFO.
70. All awards made through the Outreach Grant Program will be
subject to the audit and document retention requirements under the
applicable Federal laws and regulations for grant programs. In addition
to these requirements, the Commission directs CGB and OMD, to conduct
compliance audits for grantees that are not subject to the single audit
act requirements (i.e., non-Federal entities that do not expend Federal
awards of $750,000 or more in the recipient's fiscal year) to ensure
compliance with the Federal grant regulations, and any program rules
and requirements outlined in the NOFO and grant award for individual
grantees. Grantees must cooperate with any such audits and provide the
requested documentation pertaining to their participation in the grant
program. As noted in the following, failure to cooperate to the fullest
extent required by the Commission or USAC staff may result in the
termination of the award or disallowance of costs, subsequent recovery
of funds by the Commission, or other enforcement actions.
71. The Commission emphasizes that it is committed to program
integrity, guarding against waste, fraud, and abuse and ensuring that
funds disbursed through the Outreach Grant Program are used only for
approved purposes. The Commission makes clear that the enforcement
authority it has with respect to the Affordable Connectivity Program,
including the authority to impose forfeiture penalties to enforce
compliance, also applies to the Outreach Grant Program. The Commission
also has tools beyond forfeiture to address grantee noncompliance,
including imposing additional conditions, disallowing costs, and
suspending or terminating awards. The Commission takes seriously its
enforcement obligations. Consistent with the Infrastructure Act's
requirement that the Commission act expeditiously to investigate
potential violations of program rules and requirements and to enforce
compliance, the Commission directs the Enforcement Bureau to
expeditiously investigate potential violations of and enforce the
Outreach Grant Program rules and grant award terms and conditions. The
Commission also reserves the right to take appropriate actions,
including, but not limited to, seeking recovery of funds.
72. The ACP FNPRM sought comment on the types of technical
assistance and other support the Commission could provide to
prospective applicants and grantees in connection with the Outreach
Grant Program. Specifically, the Commission sought comment on what
might be valuable technical assistance to grantees and how technical
assistance might evolve over the duration of the grant program
implementation. The Commission also sought comment on the types of
materials that it could provide outreach partners in connection with
the Outreach Grant Program.
73. Several commenters support providing technical assistance to
applicants. NDIA urges the Commission to provide technical assistance
to prospective applicants by hosting informational webinars, holding
office hours for real-time applicant assistance, and providing
applicants with links to grant-writing resources and tools. SANDAG
requests that the Commission provide optional training sessions for
grantees to attend that could ``answer questions regarding materials,
provide step-by-step instructions on how to use tools, and serve as
another opportunity to share best practices.'' The Hawaii Broadband &
Digital Equity Office recommends that the Commission provide technical
assistance online or in-person as needed and specifically ``conduct at
minimum one annual `face-to-face' technical assistance meeting'' with
representatives from both grantees and subgrantees.'' The Hawaii
Broadband & Digital Equity Office also asks that the Commission provide
technical assistance related to allowable costs associated with
facilities, refreshments, mileage reimbursement, and incentives for
enrollment engagements.
74. The Commission agrees that CGB should provide opportunities to
walk prospective applicants through the application process and further
explain the purpose and scope of the grant program. Due to the
competitive nature of the funding opportunities for this grant program,
CGB cannot assist prospective applicants in preparing individual
applications or developing outreach proposals, as this would undermine
the integrity of the application and evaluation process. However, CGB
will provide publicly available general information further explaining
elements of the grant program and NOFO. The Commission also finds that
it would be helpful to obtain feedback from participants concerning the
administration and design of the grant program. The Commission
therefore directs CGB to provide opportunities (e.g., webinars, fact
sheets, frequently asked questions) to help prospective applicants
understand the Outreach Grant Program and its requirements and to
obtain feedback from grantees during their period of performance. The
Commission directs CGB to determine the mechanisms for and timing of
requesting any feedback from participants, and to provide information
sessions tailored to specific funding opportunities, to make
adjustments to the program administration as appropriate during the
course of the grant program based on feedback from participants, and to
provide new information sessions or training to reflect any such
adjustments. In providing information sessions, the

[[Page 54324]]

Commission directs CGB to encourage applications from entities of all
types and diverse organizations, including those serving, led, and/or
owned by persons of color, persons with disabilities, persons who live
in rural or Tribal areas, and others who are or who have been
historically underserved, marginalized, or adversely affected by
persistent poverty or inequality, and entities participating in the ACP
Navigator Pilot and the Your Home, Your Internet Pilot Program.
75. Commenters also request that the Commission develop and
disseminate toolkits, outreach materials, and train-the-trainer guides
related to conducting outreach to eligible households about and
encouraging eligible households to enroll in the Affordable
Connectivity Program. In addition, several commenters emphasize the
importance of multilingual outreach and outreach resources, and request
that the Commission provide grantees and subrecipients with
multilingual outreach materials. While CGB already provides and
continues to make available extensive outreach toolkits and ACP
materials in multiple languages, the Commission directs CGB to evaluate
whether revisions should be made to the existing toolkits, trainer
guides, and or other outreach materials for use by grant program
participants and to also evaluate whether new toolkits or materials or
additional non-English translations would help promote the
effectiveness and impact of the grant program. To carry out these
responsibilities, CGB may engage consultants or contractors. Providing
standardized materials would increase efficiency and expedite grantees
and subrecipients' outreach, particularly for smaller organizations
with limited resources, and would promote accurate and consistent ACP
messaging. However, to maximize the impact of grant-funded outreach,
the Commission encourages grantees to develop their own outreach
materials tailored to the areas and communities that are the focus of
their outreach.
76. The Commission next addresses commenter requests for other
types of support and assistance for grantees. For example,
EducationSuperHighway requests that the Commission provide grantees a
``sandbox,'' or virtual testing environment that would simulate the
National Verifier application and enrollment process. Other commenters
request additional training for individuals providing application
assistance. The Commission finds that existing resources for partner
organizations and potential grant resources for future grantees are
sufficient to train and educate individuals providing consumers with
application assistance. EducationSuperHighway and NDIA also ask that
the Commission provide real-time support, either through live chat or a
call center for grantees that provide application assistance. The
Commission reminds prospective applicants of the existing ACP call
center resources to answer questions about the application process.
While extensive resources are already available to assist outreach
partners with helping eligible consumers to navigate the ACP
application process, CGB may, in consultation with WCB and USAC,
explore the utility and feasibility of providing other avenues for
providing assistance and technical support to grantees that provide
application assistance.
77. The Commission makes robust data available to track enrollments
in the Affordable Connectivity Program and to allow grantees to
identify potential areas where targeted outreach could be beneficial,
including making aggregate enrollment data available by ZIP code,
county, age, National Verifier selected eligibility criteria, and type
of service. Additionally, as explained in the ACP Order, separate from
the grant program, the Commission has directed WCB and OEA, with
support from USAC, to collect data to develop metrics to determine
progress towards narrowing the digital divide, and WCB, OEA, and USAC
are continuing to explore potential metrics to track that goal. Some
commenters request that the Commission collect and make available plan
characteristic and pricing information for the Affordable Connectivity
Program. The Commission is required by the Infrastructure Act to make
additional information concerning ACP plan pricing and characteristics
available through the Commission's Broadband Labels or ACP Transparency
Data Collection proceedings. Once the Commission defines the
requirements of those initiatives later this year, CGB may consider
whether these data can be useful for participants engaged in or
considering a meaningful outreach campaign. The Commission also
believes the program data already publicly available to grant
recipients is sufficiently robust that the Outreach Grant Program need
not be delayed pending the resolution of those proceedings. Indeed,
today, CGB currently conducts outreach, and coordinates outreach with
other organizations without this data.
78. At least one commenter requests that the Commission establish a
grantee database of organizations engaged in Affordable Connectivity
Program outreach efforts including organizations' contact information,
details about service areas, expertise, and available resources. The
purpose of this database would be to allow for resource sharing and
coordination among grantees. Federal regulations already require
Federal awarding agencies to announce all Federal awards publicly and
to publish the required information about the award on a publicly-
available OMB designated website. To promote transparency, the
Commission directs CGB also to provide publicly available information
on the entities that have received awards through the Outreach Grant
Program on the Commission's website. At a minimum this information
should include the name of the awardee, the amount of the award, an
abstract outreach project summary, and a main point of contact for the
funding recipient. In addition, the Commission recognizes that grantees
may be interested in additional information concerning other grantees
and their outreach efforts to facilitate coordination and communication
amongst grantees. Accordingly, the Commission directs CGB to explore
the possibility of making available additional information on
participants in this grant program to facilitate coordination and
communication amongst grantees, and it expects CGB to determine how
this information could be made available, and also the types of data
that could be made available to facilitate coordination and
communication amongst participants in the grant program. Based on
grantees' willingness to participate, CGB may also establish and host
an information sharing forum to exchange lessons learned and best
practices among grant recipients in executing outreach activities.
79. Additionally, some commenters request that the Commission issue
unique grantee ID numbers to allow for tracking enrollments for
specific outreach efforts, and communication and coordination amongst
grantees. Although this proposal raises potential technical,
administrative, and legal issues, the Commission agrees there may be
utility in tracking enrollments based on grantees' outreach efforts,
perhaps by requiring the use of an FRN, SAM registration number, or
other unique identifier a grantee would be required to obtain as part
of the Outreach Grant Program, to the extent this is technically and
administratively feasible. The Commission nevertheless directs CGB and
OEA to explore the feasibility and administrability of

[[Page 54325]]

tracking enrollments by grantee outreach effort and legality of
disseminating this information.
80. The Commission acknowledges that many commenters stress the
importance of and need for data transparency concerning the Outreach
Grant Program. To promote transparency, the Commission directs CGB,
with assistance from WCB, OMD, OEA, and USAC as appropriate, to submit
to them interim updates, and a final report detailing the results of
the Outreach Grant Program. CGB shall submit the final report after the
end of the grant program, after all grant awards have been closed out.
At a minimum, the final report shall provide an assessment of the grant
program's performance against the goal identified in this final rule
and shall also summarize any lessons learned concerning the
development, administration, and management of the Outreach Grant
Program.
81. Over 12 million low-income households have already benefited
from ACP enrollment. Most providers offer plans that are either fully
or largely covered by the monthly subsidy, allowing households to
obtain affordable broadband to access job search and work options,
educational, telehealth, and entertainment resources, and communicate
with family and friends. However, tens of millions of eligible
households have yet to enroll in the Affordable Connectivity Program.
From the Commission's review of comments, it appears that many of these
households have traditionally been the most underserved and
underrepresented when it comes to broadband access. By increasing
program awareness among this diverse and underserved population, the
Outreach Grant Program will make substantial progress toward narrowing
the digital divide.
82. While the potential benefits of the Outreach Grant Program are
substantial, the Commission seeks to provide funding to support
outreach in the most cost-effective manner possible, and its discussion
in this final rule reflects that goal. The Commission recognizes that
outreach to a diverse and underserved population can be more
effectively accomplished by providing support to a diverse group of
qualified grantees that are capable of directly or indirectly (through
subrecipients) conducting effective outreach activities or working
directly with low-income populations to raise awareness of the
Affordable Connectivity Program or provide application assistance. The
Commission's decision to open eligibility up to a wide range of
governmental and non-governmental entities should result in a wide
range and variety of outreach efforts targeted towards different
segments of the targeted low-income population by grantees and
subgrantees capable of conducting this outreach. Further, the
Commission only permits grantees to receive support for allowable costs
consistent with the goal and objectives of the Outreach Grant Program.
83. The Commission also extends to CGB the flexibility necessary to
administer the Grant Program in a cost-effective manner. The Commission
makes it possible for CGB to structure NOFOs for the grant program so
as to make use of the performance measures that the Commission requires
CGB to track, and grantees to provide, in order to make more cost-
effective funding allocation decisions for the duration of the grant
program. For example, by not prescribing the number of funding
opportunities or the size of grants at this time, the Commission allows
CGB to make these determinations taking into account the information
provided by potential outreach partners in the application process as
well as enrollment, awareness or other programmatic data from the
Affordable Connectivity Program to the greatest possible extent.
Likewise, unless otherwise specified in this final rule, CGB has
flexibility in how the overall grant program budget shall be
distributed across one or more NOFOs. This prioritizes cost-effective
spending by ensuring that funding decisions are driven by outreach
needs and quality of grantee applications rather than presupposing
uniformity. In taking these steps to maximize cost-effectiveness, the
Commission compromises none of the integrity of the Outreach Grant
Program: it still requires that grantees operate in a broadband service
provider-neutral manner, prohibit grantee representatives from
receiving compensation based on the number of ACP applications or
enrollments attributable to their outreach (including enrollment
assistance), prohibit grantees from earning or keeping any profit
resulting from a grant award, and the Commission maintains full
accordance with all Federal requirements for the administration and
management of Federal grant programs.

III. Severability

84. All of the rules that are adopted in this final rule are
designed to work in unison to develop, administer and manage the
Outreach Grant Program, provide grant funds to eligible outreach
partners, and to protect the integrity of the Outreach Grant Program's
administration. However, each of the separate rules the Commission
adopts here serves a particular function toward these goals. Therefore,
it is the Commission's intent that each of the rules adopted herein
shall be severable. If any of the rules is declared invalid or
unenforceable for any reason, it is the Commission's intent that the
remaining rules shall remain in full force and effect.

IV. Procedural Matters

A. Paperwork Reduction Act

85. Pursuant to 47 U.S.C. 1752(h)(2) the collection of information
sponsored or conducted under the regulations promulgated in this final
rule is deemed not to constitute a collection of information for the
purposes of the Paperwork Reduction Act, 44 U.S.C. 3501-3521.

B. Congressional Review Act

86. The Commission has determined, and the Administrator of the
Office of Information and Regulatory Affairs, OMB, concurs, that this
rule is ``major'' under the Congressional Review Act, 5 U.S.C. 804(2).
The Commission will send a copy of the Report and Order to Congress and
the Government Accountability Office pursuant to 5 U.S.C. 801(a)(1)(A).
87. Regulatory Flexibility Act. Consistent with the Regulatory
Flexibility Act of 1980, as amended (RFA), the Commission included an
Initial Regulatory Flexibility Analysis (IRFA) of the possible
significant economic impact on a substantial number of small entities
by the policies and rules proposed in the ACP Order in WC Docket No.
21-450. The Commission sought written public comment on the proposals
in the ACP Order, including comment on the IRFA. No comments were filed
addressing the IRFA. This Final Regulatory Flexibility Analysis
conforms to the RFA.
88. In the Infrastructure Act, Congress established the Affordable
Connectivity Program, which is designed to promote access to broadband
internet access services by households that meet specified eligibility
criteria by providing funding for participating providers to offer
certain services and connected devices to these households at
discounted prices. The Affordable Connectivity Program funds an
affordable connectivity benefit consisting of a $30.00 per month
discount on the price of broadband internet access services that
participating providers supply to eligible households in most parts of
the country and a $75.00 per month

[[Page 54326]]

discount on such prices for households residing in qualifying Tribal
lands.
89. The Infrastructure Act also requires the Commission to conduct
outreach efforts to inform potentially eligible households about the
Affordable Connectivity Program and encourage them to enroll in the
program, and it authorizes the Commission to provide grants to outreach
partners in order to carry out this responsibility. With the
expectation that the Affordable Connectivity Program will extend for
multiple years, in this final rule the Commission promulgates rules and
guidelines establishing the Outreach Grant Program. The Commission
establishes a program goal and objectives, implements applicable
Federal grant regulations, and provides a framework for the program.
90. The Commission establishes rules and requirements in this final
rule necessary to establish the Outreach Grant Program. Additional
information on the Outreach Grant Program, including, but not limited
to, the application process and reporting requirements will be provided
in a subsequent NOFO. Establishing the Outreach Grant Program is
consistent with our authorization under the Infrastructure Act and our
ongoing efforts to bridge the digital divide by ensuring that eligible
low-income households have access to affordable, high-quality,
broadband internet access service.
91. The RFA directs agencies to provide a description of, and where
feasible, an estimate of the number of small entities that may be
affected by the proposed rules, if adopted. The RFA generally defines
the term ``small entity'' as having the same meaning as the terms
``small business,'' ``small organization,'' and ``small governmental
jurisdiction.'' In addition, the term ``small business'' has the same
meaning as the term ``small business concern'' under the Small Business
Act. A small business concern is one that: (1) is independently owned
and operated; (2) is not dominant in its field of operation; (3)
satisfies any additional criteria established by the Small Business
Administration (SBA).
92. Small Businesses, Small Organizations, Small Governmental
Jurisdictions. The Commission's actions, over time, may affect small
entities that are not easily categorized at present. The Commission
therefore describes here, at the outset, three broad groups of small
entities that could be directly affected herein. First, while there are
industry specific size standards for small businesses that are used in
the regulatory flexibility analysis, according to data from the SBA's
Office of Advocacy, in general a small business is an independent
business having fewer than 500 employees. These types of small
businesses represent 99.9% of all businesses in the United States,
which translates to 32.5 million businesses.
93. Next, the type of small entity described as a ``small
organization'' is generally ``any not-for-profit enterprise which is
independently owned and operated and is not dominant in its field.''
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000
or less to delineate its annual electronic filing requirements for
small exempt organizations. Nationwide, for tax year 2020, there were
approximately 447,689 small exempt organizations in the U.S. reporting
revenues of $50,000 or less according to the registration and tax data
for exempt organizations available from the IRS.
94. Finally, the small entity described as a ``small governmental
jurisdiction'' is defined generally as ``governments of cities,
counties, towns, townships, villages, school districts, or special
districts, with a population of less than fifty thousand.'' U.S. Census
Bureau data from the 2017 Census of Governments indicate that there
were 90,075 local governmental jurisdictions consisting of general
purpose governments and special purpose governments in the United
States. Of this number there were 36,931 general purpose governments
(county, municipal and town or township) with populations of less than
50,000 and 12,040 special purpose governments--independent school
districts with enrollment populations of less than 50,000. Accordingly,
based on the 2017 U.S. Census of Governments data, the Commission
estimates that at least 48,971 entities fall into the category of
``small governmental jurisdictions.''
95. Regional Planning Committees. Neither the Commission nor the
SBA have developed a small business size standard specifically
applicable to Regional Planning Committees (RPCs). The closest
applicable industry with a SBA small business size standard is Business
Associations, which comprises establishments primarily engaged in
promoting the business interests of their members. Examples of such
organizations include: real estate boards, chambers of commerce, trade
associations and manufacturers' associations. The SBA small business
size standard for Business Associations classifies firms with annual
receipts of $8 million or less as small. For this industry, U.S. Census
Bureau data for 2017 show that there were 14,540 firms that operated
for the entire year. Of these firms, 11,215 had revenue of less than $5
million. Based on this data, the majority of firms in this industry can
be considered small.
96. The Commission set aside six megahertz of spectrum in the 800
MHz band for exclusive use by local, regional and state public safety
agencies under guidelines developed by the National Public Safety
Planning Advisory Committee (NPSPAC). The 800 MHz NPSPAC spectrum is
administered on a regional basis by 55 public safety RPCs. RPCs consist
of public safety volunteer spectrum planners and members that dedicate
their time, to coordinate spectrum efficiently and effectively to make
it available to public safety agency applicants in their respective
regions. In the 700 MHz band the general use channels and some of the
narrowband low power channels are subject to regional planning. There
are 55 RPCs for the 700 MHz band whose task is to create a plan for
General Use in their area and submit it to the Commission. RPCs are
volunteer committees and the Commission does not have revenue
information to which the SBA size standard can be applied. However,
these committees typically have less than 5 members per region,
therefore the Commission estimates that most RPCs are small.
97. Grants to Consumer Outreach Partners. The Commission, like all
other Federal agencies, is required to comply with government-wide
regulations governing grant awards, codified primarily in title 2 of
the Code of Federal Regulations (2 CFR), that apply to all Federal
agencies. Those uniform Federal grant-related requirements, developed
based on guidance provided over a number of years by OMB, were codified
in an interim final rule that OMB and over 30 other Federal agencies
jointly adopted and published in the Federal Register on December 19,
2014 (Uniform Guidance, 79 FR 75871, December 19, 2014). In adopting
their own rules to implement these standardized grant-making
requirements, some agencies that joined in the issuance of the Uniform
Guidance--including the Department of Commerce, whose rules apply to
sub-agencies including the National Telecommunications and Information
Administration, and the SBA--incorporated OMB's guidance without
change. Other agencies that joined in the issuance of the Uniform
Guidance, including the Department of Agriculture's Rural Utilities
Service (RUS), adopted additional language in their own regulations to
provide more detail with respect to how they intended to implement the
policy and to clarify

[[Page 54327]]

any pertinent exceptions to the general rules.
98. OMB and the other agencies that joined in issuing the Uniform
Guidance in 2014 concluded that, under the standards of the RFA, the
requirements regarding grant awards would not have a significant
economic impact on a substantial number of small entities. These
agencies reached this conclusion based on the fact that largely
identical generic requirements were already in place, and the Uniform
Guidance simply codified them without any incremental impact on a
substantial number of small entities.
99. The grant-related rules adopted in this final rule follow the
Uniform Guidance that applies to all Federal agencies. Like OMB, SBA,
and other agencies that joined in issuing the Uniform Guidance in 2014,
the Commission does not anticipate that such rules will have a
significant economic impact on a substantial number of small entities.
A subsequent Notice of Funding Opportunity will be issued with
additional information on the Outreach Grant Program, including the
application and reporting requirements. These requirements will be
necessary to ensure high-quality applications and facilitate the
evaluation of the applications, and to also ensure compliance with the
requirements in the Uniform Guidance. In establishing these
requirements, consideration will be given to the administrative and
compliance burdens on Outreach Grant Program participants, including
small entities.
100. The RFA requires an agency to describe any significant,
specifically small business, alternatives that it has considered in
reaching its proposed approach, which may include the following four
alternatives (among others): ``(1) the establishment of differing
compliance or reporting requirements or timetables that take into
account the resources available to small entities; (2) the
clarification, consolidation, or simplification of compliance and
reporting requirements under the rule for such small entities; (3) the
use of performance rather than design standards; and (4) an exemption
from coverage of the rule, or any part thereof, for such small
entities.''
101. The Commission concludes that the rules adopted in this final
rule are not likely to have any significant economic impact on eligible
small entities that voluntarily opt to apply for outreach grants or
participate in the Outreach Grant Program as subrecipients. Moreover,
regardless of size, all entities that apply for an outreach grant will
need to satisfy the minimum application requirements outlined in the
applicable Notice of Funding Opportunity and entities participating in
the Outreach Grant Program will be required to comply with Outreach
Grant Program requirements, including, but not limited to, progress and
financial reporting consistent with the government-wide Uniform
Guidance, which necessarily will be the foundation of our rules and
requirements for the Outreach Grant Program. This final rule declines
to adopt a matching requirement for the Outreach Grant Program, because
it would likely discourage or delay applications from potential
outreach partners, particularly smaller organizations. In developing
the rules and requirements, including, but not limited to, the
application requirements and reporting requirements, consideration will
be given to the burdens on all participants, including small entities.
The Outreach Grant Program will permit subrecipients where appropriate
(e.g., awards to state or local government entities, or national
entities), which will enable eligible small entities to participate in
the Outreach Grant Program and benefit from the administrative capacity
and resources of larger grantees with respect to reporting and other
Outreach Grant Program requirements, which may minimize the
administrative and compliance burdens for small entities that
participate as subrecipients.

V. Ordering Clauses

1. Accordingly, it is ordered that, pursuant to the authority
contained in Section 904 of Division N, Title IX of the Consolidated
Appropriations Act, 2021, Public Law 116-260, 134 Stat. 1182, as
amended by section 60502 of Division F, Title V of the Infrastructure
Investment and Jobs Act, Public Law 117-58, 135 Stat. 429 (2021), and
the authority contained in sections 1, 4(i), 5(c), and 303(r), of the
Communications Act of 1934, as amended, 47 U.S.C. 151, 154(i), 155(c),
303(r), 1752, and the authority contained section 60502 of Division F,
Title V of the Infrastructure Investment and Jobs Act, 47 U.S.C.
1752(b)(10)(C), the Report and Order is adopted.
2. It is further ordered, that parts 0 and 54 of the Commission's
rules, 47 CFR parts 0 and 54, are amended as set forth in the
following, and such rule amendments shall be effective sixty (60) days
after publication of the text or summary thereof in the Federal
Register.
3. It is further ordered, that subtitle B of title 2 of the Code of
Federal Regulations are amended as set forth in the following, and such
rule amendments shall be effective sixty (60) days after publication of
the text or summary thereof in the Federal Register.

List of Subjects

2 CFR Part 6000

Accounting, Administrative practice and procedure, Grant programs,
Grants administration, Loan programs, Nonprofit organizations,
Reporting and recordkeeping requirements.

47 CFR Part 0

Authority delegations (Government agencies), Communications,
Communications common carriers, Classified information, Freedom of
information, Government publications, Infants and children,
Organization and functions (Government agencies), Postal Service,
Privacy, Reporting and recordkeeping requirements, Sunshine Act,
Telecommunications.

47 CFR Part 54

Communications common carriers, Health facilities, Infants and
children, Internet, Libraries, Puerto Rico, Reporting and recordkeeping
requirements, Schools, Telecommunications, Telephone, Virgin Islands.

Federal Communications Commission.
Marlene Dortch,
Secretary.

Final Regulations

For the reasons discussed in the preamble, the Federal
Communications Commission amends subtitle B of title 2 and parts 0 and
54 of title 47 of the Code of Federal Regulations as follows:

Title 2--Grants and Agreements

Subtitle B--Federal Agency Regulations for Grants and Agreements

0
1. Under the authority of 47 U.S.C. 154(i) and 1752(b)(10)(C) and 2 CFR
part 200, add chapter LX, consisting of parts 6000 through 6099, in
subtitle B of title 2 to read as follows:

[[Page 54328]]

CHAPTER LX--FEDERAL COMMUNICATIONS COMMISSION

PART 6000--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

PARTS 6001-6099 [Reserved]

PART 6000--UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES,
AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS

Sec.
6000.1 Adoption of 2 CFR part 200.
6000.2 [Reserved]

Authority: 47 U.S.C. 154(i), 1752(b)(10)(C); 2 CFR Part 200.

Sec. 6000.1 Adoption of 2 CFR Part 200.

Except as otherwise may be provided by this part, the Federal
Communications Commission adopts the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards set forth at 2 CFR part 200.

Sec. 6000.2 [Reserved]

PARTS 6001-6099 [Reserved]

Title 47--Telecommunication

PART 0--COMMISSION ORGANIZATION

0
2. The authority citation for part 0 continues to read as follows:

Authority: 47 U.S.C. 151, 154(i), 154(j), 155, 225, and 409,
unless otherwise noted.

0
3. Amend Sec. 0.11 by adding paragraph (a)(11) to read as follows:

Sec. 0.11 Functions of the Office.

(a) * * *
(11) Advise the Chairman, Commission, and Commission Bureaus and
Offices on matters concerning the development, administration, and
management of the Affordable Connectivity Outreach Grant Program.
* * * * *

0
4. Amend Sec. 0.141 by revising the introductory text and adding
paragraph (l) to read as follows:

Sec. 0.141 Functions of the Bureau.

The Consumer and Governmental Affairs Bureau develops and
administers the Commission's consumer and governmental affairs policies
and initiatives to enhance the public's understanding of the
Commission's work and to facilitate the Agency's relationships with
other governmental agencies and organizations. The Bureau is
responsible for rulemaking proceedings regarding general consumer
education policies and procedures and serves as the primary Commission
entity responsible for communicating with the general public regarding
Commission policies, programs, and activities in order to facilitate
public participation in the Commission's decision-making processes. The
Bureau also serves as the primary Commission entity responsible for
administering the Affordable Connectivity Outreach Grant Program for
outreach, in coordination with the Office of the Managing Director,
Office of the General Counsel, Wireline Competition Bureau, and Office
of Economics and Analytics. The Bureau also performs the following
functions:
* * * * *
(l) Advises and makes recommendations to the Commission, or acts
for the Commission under delegated authority, to develop, administer,
and manage the Affordable Connectivity Outreach Grant Program. This
includes coordinating with the Office of the Managing Director (OMD) on
interagency agreements with other Federal agencies as may be necessary
to develop, administer, and manage the Affordable Connectivity Outreach
Grant Program, including, developing, administering, and issuing
Notices of Funding Opportunity for and making grant awards or entering
into cooperative agreements for the Affordable Connectivity Outreach
Grant Program. This also includes, with the concurrence of the General
Counsel, interpreting rules and regulations pertaining to the
Affordable Connectivity Outreach Grant Program.

0
5. Amend Sec. 0.231 by:
0
a. Revising paragraph (l); and
0
b. Removing the parenthetical authority citation at the end of the
section.
The revision reads as follows:

Sec. 0.231 Authority delegated.

* * * * *
(l) The Managing Director is delegated authority to issue subpoenas
for the Office of Managing Director's oversight of audits of the USF
programs and other financial assistance programs, and the Office of
Managing Director's review and evaluation of the interstate
telecommunications relay services fund, the North American numbering
plan, regulatory fee collection, FCC operating expenses, and debt
collection. Before issuing a subpoena, the Office of Managing Director
shall obtain the approval of the Office of General Counsel.
* * * * *

PART 54--UNIVERSAL SERVICE

0
6. The authority for part 54 continues to read as follows:

Authority: 47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220,
229, 254, 303(r), 403, 1004, 1302, 1601-1609, and 1752, unless
otherwise noted.

0
7. Add subpart S, consisting of Sec. Sec. 54.1900 through 54.1904, to
read as follows:

Subpart S--Affordable Connectivity Outreach Grant Program

Sec.
54.1900 Applicability of Uniform Administrative Requirements for
grants and cooperative agreements to non-Federal entities.
54.1901 Neutrality requirement.
54.1902 Prohibited activities and costs.
54.1903 Ineligible entities.
54.1904 Recordkeeping and audits.

Sec. 54.1900 Applicability of Uniform Administrative Requirements for
grants and cooperative agreements to non-Federal entities.

Federal awards to non-Federal entities are subject to the Uniform
Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards at 2 CFR part 200, as adopted at 2 CFR 6000.1.

Sec. 54.1901 Neutrality requirement.

Outreach conducted by Grantees, Pass-through Entities, and
Subrecipients, as defined in 2 CFR part 200, through the Commission's
Affordable Connectivity Outreach Grant Program shall be neutral with
respect to a particular participating provider (as defined in Sec.
54.1800(r)(1) through (4)) or among a specific group of participating
providers (including, but not limited to, broadband industry groups,
such as trade associations).

Sec. 54.1902 Prohibited activities and costs.

In addition to any prohibited activities or costs, or other
restrictions on grantee activities and costs under 2 CFR part 200, as
adopted at 2 CFR 6000.1, or any other Federal statutes and regulations
governing Federal grants, the following prohibitions apply to Grantees,
Pass-through Entities, and Subrecipients for the Affordable
Connectivity Outreach Grant Program.
(a) Prohibition against steering consumers to particular ACP
participating providers. Grantees, Pass-through Entities, and
Subrecipients (as defined in 2 CFR 200.1) shall not direct, steer,
incentivize, or otherwise

[[Page 54329]]

encourage consumers to enroll with a particular participating provider
(as defined in Sec. 54.1800(r)(1) through (4)) or among a specific
group of participating providers (including, but not limited to,
broadband industry groups, such as trade associations) when conducting
grant-funded outreach activities. Grantees, Pass-through Entities, and
Subrecipients shall also make clear that eligible households may enroll
with the participating provider of their choice.
(b) Prohibition against use of ACP participating provider-branded
items. Grantees, Pass-through Entities, and Subrecipients shall not use
participating-provider (as defined in Sec. 54.1800(r)(1) through (4))
branded items such as outreach materials, gifts, or incentives when
conducting grant-funded outreach activities.
(c) Prohibition against ACP participating provider gifts,
incentives, and funding. Grantees, Pass-through Entities, and
Subrecipients shall not:
(1) Offer or provide consumers gifts or incentives provided by or
funded by a participating provider (as defined in Sec. 54.1800(r)(1)
through (4)) or a specific group of participating providers (including,
but not limited to, broadband industry groups, such as trade
associations) to encourage consumers to learn about, apply for, or
enroll in the Affordable Connectivity Program (ACP) when conducting
grant-funded outreach activities; or
(2) Otherwise accept funding in any form, including in-kind
contributions, from a participating provider or a specific group of
participating providers for the purpose of conducting grant-funded
outreach activities.
(d) Prohibition against using grant funds for gifts and incentives.
Grantees, Pass-through Entities, and Subrecipients may not use grant
funds to obtain or support gifts or incentives to offer or provide to
consumers to encourage consumers to learn about, apply for, or enroll
in the Affordable Connectivity Program or otherwise engage with the
Grantee, Pass-through Entity, or Subrecipient concerning the Affordable
Connectivity Program when conducting grant-funded outreach activities.
(e) Prohibition of certain compensation for individuals engaged in
outreach. Grantees, Pass-through Entities, and Subrecipients shall not
offer or provide any form of compensation that is based on the number
of consumers or households that learn about, apply for, or enroll in
the Affordable Connectivity Program to individuals conducting grant-
funded outreach activities, including but not limited to their
personnel, their representatives, their contractors, or others acting
on behalf of the entity to conduct grant-funded outreach.

Sec. 54.1903 Ineligible entities.

(a) In addition to any participant restrictions in 2 CFR part 200,
as adopted at 2 CFR 6000.1, the following entities may not receive
awards, either as Grantees, Pass-through Entities, or Subrecipients
under the Outreach Grant Program:
(1) Broadband providers (including municipal broadband providers),
their affiliates, subsidiaries, contractors, agents, or
representatives; and
(2) Broadband industry groups and trade associations that represent
broadband providers.
(b) For municipal broadband providers, the exclusion of broadband
providers and their affiliates, subsidiaries, or representatives from
eligibility does not extend to separate arms of the municipality that
do not maintain, manage, or operate the municipal broadband network.

Sec. 54.1904 Recordkeeping and audits.

Participants in the Affordable Connectivity Outreach Grant Program
must maintain records to document compliance with the rules and
requirements for the Outreach Grant Program in accordance with 2 CFR
200.334, 200.335, 200.336, and 200.338, as adopted at 2 CFR 6000.1, and
shall provide that documentation to the Office of the Managing Director
or any other FCC Bureau or Office, or their assigns, upon request in
accordance with 2 CFR 200.337, as adopted at 2 CFR 6000.1.

[FR Doc. 2022-17927 Filed 9-2-22; 8:45 am]
BILLING CODE 6712-01-P

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