The Case for a State-Level ACP Program in Texas

By John E. Hargrove, P.E.

Investing in Connectivity for Rural Texas: A Path Forward

In today's digital economy, access to reliable, high-speed internet is no longer a luxury—it is a necessity. From education and healthcare to economic growth and workforce participation, broadband is the backbone of opportunity. However, for many rural Texans, particularly in East Texas, broadband remains out of reach due to financial constraints.

A recent study by The Brattle Group provides compelling evidence that broadband assistance programs, like the Affordable Connectivity Program (ACP), save more than they cost—particularly in the areas of healthcare and economic impact. Texas now has a critical opportunity to implement a state-level ACP program to bridge the digital divide, improve public health outcomes, and generate long-term economic benefits.

This article advocates for:

• A Texas-specific ACP-style program at the state level, focusing on low-income households.
• Regional non-profits to develop targeted, time-bound rural broadband assistance programs, evaluating costs and benefits in the most underserved areas.
• Local, state, and federal leaders to support these efforts through policy and funding initiatives.

The ACP Model: More Savings than Cost

The Brattle Group’s analysis of the federal ACP program shows that broadband subsidies generate massive cost savings, particularly in healthcare. Consider the following:

• The $7.3 billion annual cost of the federal ACP resulted in $28.9–$29.5 billion in healthcare savings across Medicare, Medicaid, and Veterans Affairs.
• One telemedicine visit saves the equivalent of 3.5 years of ACP support for a Medicaid recipient.
• Telehealth reduces medical costs significantly:
• Veterans using tele-emergency services reduced in-person ER visits by nearly 50%, further reducing costs.

Beyond healthcare, broadband access leads to higher educational attainment, greater workforce participation, and GDP growth:

• Home broadband access improves student performance, increasing lifetime earnings.
• Universal broadband could raise U.S. GDP by 1.1%—a gain of $160 billion per year.
• A Texas ACP-style program and broadband expansion could potentially add $26+ billion annually to the state's economy by enabling better workforce participation, education, healthcare, and business growth.
• Broadband enables remote work and job-seeking opportunities, expanding economic mobility.

Given these findings, Texas has a unique chance to create a state-level ACP program that delivers a strong return on investment while improving quality of life across rural and underserved communities.

A Texas ACP: A Targeted, Regional Approach

The state should pursue a two-tiered approach to broadband affordability and access:

1. A Statewide ACP Program
2. Regional Pilot Programs for Rural Texas

Policy Leadership is Needed

The success of this initiative depends on support from key decision-makers at the state and federal levels. State Senator Robert Nichols, State Representative Dade Phelan, and Governor Greg Abbott have the opportunity to champion broadband affordability through legislation and budget priorities.

At the federal level, U.S. Representative Brian Babin can advocate for additional resources to support state-led broadband initiatives. Meanwhile, local leaders, including county judges in Jasper, Sabine, Newton, and San Augustine counties, and DETCOG’s Conor Sadro, play a crucial role in securing funding and ensuring successful implementation.

Additionally, SFA’s Center for Applied Research and Rural Innovation (CAIRRI) can provide critical research and data analytics to assess the impact of these programs.

Conclusion: The Time to Act is Now

Broadband access is not just an infrastructure issue—it’s an economic, educational, and healthcare necessity. The data clearly shows that broadband affordability programs pay for themselves many times over. Texas has a chance to lead by example with a state-level ACP program and regional broadband affordability initiatives.

By taking action now, we can ensure that rural and underserved Texans are not left behind in the digital age. Investing in connectivity today means a healthier, wealthier, and more competitive Texas tomorrow.

Let’s work together to make it happen.