Lower Internet Costs Act

Bill Number

H.R. 5550

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Science, Technology, Communications

Status

Introduced

Latest Action

2025-09-23: Referred to the House Committee on Energy and Commerce.

Last Updated

2025-12-16T19:23:42Z

AI-Generated Summary

Purpose of the Legislation

The "Lower Internet Costs Act" (H.R. 5550) aims to increase transparency in broadband internet pricing and eliminate certain hidden fees charged by providers. It directs the Federal Communications Commission (FCC) to create rules ensuring consumers see the full, total cost of service upfront, making it easier to understand and compare prices.

Key Provisions

• Timeline for Implementation: The FCC must issue regulations within 90 days of the bill's enactment.
• Aggregate Price Requirements:
• On customer bills: Providers must list the total (aggregate) price for broadband service as a single, clear line item. For introductory or time-limited prices, providers must notify customers about 60 and 30 days before the end of the period, stating the period's length or end date and the new price afterward.
• In promotional materials: Providers must clearly state the total price, including post-introductory rates, period lengths, and how long the higher price will apply. For prices that vary by location, providers must explain how customers can get a personalized quote (e.g., online or by calling). Legacy plans (older plans no longer offered to new customers) are exempt from promotional rules.
• Additional details: Providers can include an itemized breakdown alongside the total price. Certain charges like taxes, administrative fees, or equipment costs are excluded from the total price calculation.
• Prohibition on Covered Fees: Providers cannot charge subscribers specific fees, defined as:
• State cost recovery charges (to cover state regulations or programs).
• Network-related fees (e.g., for building, maintaining, or enhancing the network).
• Local access fees (to compensate local governments for using public rights-of-way).
• Tech support or repair fees.
• Any similar fees the FCC identifies.
• Bundled Services: If broadband is sold with other services (e.g., TV or phone), the total price rules apply only to broadband portions of the bill, but the fee prohibition covers the entire bundle.
• Definitions:
• "Broadband service" refers to high-speed internet access as defined by FCC rules.
• "Aggregate price" means the full cost of the broadband service itself, excluding the exempted charges.

Significant Changes to Existing Law

This bill adds a new Section 723 to Title VII of the Communications Act of 1934 (which covers miscellaneous provisions). Currently, there are no federal mandates requiring broadband providers to display total prices clearly on bills or in ads, nor prohibitions on the specified "covered fees." This introduces the first nationwide standards for pricing transparency and fee restrictions in broadband billing, expanding FCC oversight beyond existing net neutrality or service quality rules.

Potential Impacts

• On Citizens: Consumers could benefit from clearer bills and ads, reducing surprises from hidden fees and making it easier to shop for affordable internet. This may lower effective costs by eliminating add-on charges, potentially improving access for low-income households.
• On Government Agencies: The FCC gains new rulemaking and enforcement responsibilities, requiring resources to develop and monitor compliance. State and local governments might see reduced revenue from related fees (e.g., local access fees), prompting adjustments in funding for public infrastructure.
• On Broadband Providers: Internet service providers (e.g., Comcast, AT&T) must revise billing systems, ads, and practices, which could increase operational costs but simplify pricing structures. Prohibited fees might reduce their revenue, encouraging more competitive, all-in pricing.
• On International Relations: No direct impacts, as the bill focuses on domestic U.S. broadband regulation.

Main Stakeholders Affected

• Consumers/Subscribers: Primary beneficiaries through greater transparency and potential cost savings.
• Broadband Providers: Directly regulated entities that must change billing and marketing to comply.
• Federal Communications Commission (FCC): Tasked with creating and enforcing the new rules.
• State and Local Governments: Indirectly affected by prohibitions on fees tied to regulatory compliance or public infrastructure use.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens consumer protection in telecommunications by mandating FCC regulations, potentially leading to enforcement actions (e.g., fines for non-compliance). It builds on the FCC's existing authority over broadband as an information service but does not alter core classifications like net neutrality.
• Constitutional Implications: Relies on Congress's power to regulate interstate commerce (under the Commerce Clause), which courts have upheld for communications laws. No apparent free speech issues, as requirements focus on factual disclosures rather than restricting content.
• Political Implications: Promotes affordability and fairness in internet access, aligning with broader goals of digital equity. It could spark debates over federal vs. state authority on fees, but the bill neutrally targets specific practices without favoring particular providers or regions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Harder, Josh [D-CA-9]

Recent Actions

• 2025-09-23: Referred to the House Committee on Energy and Commerce.
• 2025-09-23: Introduced in House
• 2025-09-23: Introduced in House

Bill Versions

• Lower Internet Costs Act — issued 2025-09-23 — PDF (7 pages)