Funds
The High Cost/Connect America program consists of multiple funds that subsidize the delivery of voice and broadband service across rural America.
Modernized Funds
- Connect America Fund Phase II Model – Provided set monthly payments based on a cost model to “price cap” carriers to deploy broadband service with speeds of at least 10 megabits per second downstream and one megabit per second upstream (10/1 Mbps) to a specific number of fixed locations in areas eligible for funding. The CAF Phase II Model support term initially ran from 2015 to 2020, and all participating carriers then elected an optional seventh year of support for 2021. CAF II Model carriers had until the end of 2021 to complete deployment and had to meet interim deployment milestones.
- Connect America Fund (CAF) Phase II Auction – Provides set monthly payments to entities that successfully bid in a 2018 competitive reverse auction to deploy broadband in areas where the incumbent “price cap” carrier did not accept CAF II Model funding and other “price cap” areas that are most costly to serve. CAF II Auction payments began in 2019 on a rolling basis, with support terms running 10 years. CAF II Auction carriers had until the end of 2025 to complete deployment of broadband with speeds, usage allowance and latency consistent with their winning auction bids, and were required to meet interim deployment milestones. CAF II Auction carriers that were not fully deployed to 100 percent of their obligated location counts by the end of 2025 have a one-year “cure period,” which ends on Dec. 31, 2026, to make up any deployment shortfalls and address any compliance gaps.
- Connect America Fund Broadband Loop Support (CAF BLS) – Provides support based on carrier costs and other financial data to “rate of return” carriers to deploy broadband with speeds of at least 25 megabits per second downstream and 3 megabit per second upstream (25/3 Mbps) to a specific number of fixed locations in areas eligible for funding. The initial CAF BLS deployment term ran from 2019 to 2023, and carriers had to complete deployment by the end of 2023. CAF BLS carriers that were out of compliance with that five-year milestone as of the end of 2023 had a one-year “cure period,” which ended on Dec. 31, 2024, to make up any deployment shortfalls and address any compliance gaps. The FCC has deferred the start of the next five-year deployment obligation term for CAF BLS carriers.
- Alternative Connect America Cost Model (ACAM) – Provides set monthly payments based on a cost model to “rate of return” carriers to build broadband at multiple speed tiers – up to 25 megabits per second downstream and 3 megabit per second upstream (25/3 Mbps) – to a specific number of fixed locations in areas eligible for funding. The original ACAM support term runs from 2017 to 2026. ACAM carriers have until the end of 2026 to complete deployment and must meet interim deployment milestones.
- Revised Alternative Connect America Cost Model (Revised ACAM) – Provides set monthly payments based on a cost model to “rate of return” carriers to build broadband at multiple speed tiers – up to 25 megabits per second downstream and 3 megabit per second upstream (25/3 Mbps) – to a specific number of fixed locations in areas eligible for funding. Revised ACAM increased model-based support for existing ACAM carriers to meet expanded broadband buildout obligations at faster speeds. The Revised ACAM support term runs from 2019 to 2028. Revised ACAM carriers have until the end of 2028 to complete deployment and must meet interim deployment milestones.
- Alternative Connect America Cost Model II (ACAM II) – Provides set monthly payments based on a cost model to “rate of return” carriers that voluntarily elected to transition from CAF BLS funding to model-based support to deploy broadband at multiple speed tiers – up to 25 megabits per second downstream and 3 megabit per second upstream (25/3 Mbps) – to a specific number of fixed locations in areas eligible for funding. The ACAM II support term runs from 2017 to 2028. ACAM II carriers have until the end of 2028 to complete deployment and must meet interim deployment milestones.
- Enhanced Alternative Connect America Cost Model (Enhanced ACAM) – Provides additional support to carriers that were participating in other CAF programs to bring faster broadband – with speeds of at least 100 megabits per second downstream and 20 megabits per second upstream (100/20 Mbps) – to more locations. The Enhanced ACAM support term runs from 2024 to 2038. Starting in 2024, Enhanced ACAM interim and final deployment milestones replaced ACAM, Revised ACAM and ACAM II deployment milestones for carriers that transitioned to the new fund from those programs. (These carriers were required to meet the 2023 deployment milestones of their previous funds.) Enhanced ACAM carriers have until the end of 2028 to complete deployment and must meet interim deployment milestones.
- Rural Digital Opportunity Fund (RDOF) – Provides set monthly payments to entities that successfully bid in a 2020 competitive reverse auction to deploy broadband in certain areas that lack broadband service with speeds of at least 25 megabits per second downstream and 3 megabits per second upstream (25/3 Mbps). RDOF payments began in 2021 on a rolling basis, with support terms running 10 years. RDOF recipients have up to eight years to complete deployment of broadband with speeds, usage allowance and latency consistent with their winning auction bids, and must meet interim deployment milestones..
- Rural Broadband Experiments (RBE) – Provided set monthly payments to carriers that successfully bid to deploy broadband in unserved “price cap” areas, including rural areas that are the costliest to serve. The RBE support term ran from 2015 to 2025 and carriers were required to meet interim and final deployment milestones on a rolling basis.
- Alaska Plan – Provides set monthly payments to “rate of return” carriers to maintain, extend and upgrade broadband service across Alaska, with specific deployment obligations tailored to individual carriers to reflect the state’s unique climate and geography. The Alaska Plan support term runs from 2017 to 2026. Alaska Plan carriers have until the end of 2026 to complete deployment. The FCC established five-year (2021) and 10-year (2026) service milestones as part of each carrier’s individualized performance plan.
- Alaska Connect Fund (ACF) – Provides ongoing and predictable High Cost support through 2034 for modern fixed and mobile broadband networks across remote and underserved regions of Alaska. The program extends and increases support for carriers participating in other High Cost funds – including the Alaska Plan, which ends in 2026 – to facilitate the transition to faster speeds, and is structured to address the unique challenges presented by the state’s harsh climate, vast and rugged geography and low population density.
- Bringing Puerto Rico Together (Uniendo a Puerto Rico) Fund and the Connect USVI Fund – Provides support to carriers to rebuild, expand and harden fixed and mobile communications networks throughout Puerto Rico and the U.S. Virgin Islands after Hurricanes Irma and Maria caused massive damage in 2017. The programs provide set monthly payments over a support term that runs from 2021 to 2031. Carriers have until the end of 2027 to complete deployment – with final deployment milestones by municipio in Puerto Rico – and must meet interim milestones.