The coming changes could mean price increases for low-income households in the Affordable Connectivity program if reduced federal aid isn’t enough to cover the full cost of its services. But the impact ultimately depends on internet providers, which can offer their own discounts or simply choose to stop receiving federal subsidies in May.
AT&T, Charter, Comcast, Verizon and others have not yet detailed how they will handle the matter if cuts are made or whether they plan to provide other financial relief to low-income families who may face rising bills. None of the four companies contacted immediately responded to requests for comment Tuesday.
In a blog post last week, AT&T recommended to subscribers its existing low-cost option, which costs $30 per month. The company did not say whether it would accept some of the federal subsidies in May.
“We encourage providers to work to keep consumers connected during this critical time,” the FCC said in an announcement.
The FCC notice comes a day after the White House renewed its call for Congress to approve new emergency funding for the Affordable Connectivity Initiative, which lawmakers enacted as part of a sweeping bipartisan 2021 law aimed at improving the nation’s infrastructure. The idea originated during the coronavirus pandemic, when Democrats and Republicans wanted to ensure that cash-strapped families, many of whom have lost their jobs, could continue to work, learn and communicate online.
Lawmakers have had multiple opportunities this year to address funding shortfalls, but they have repeatedly failed to take action, even as part of the deal they passed last month to fund the government. Their next opportunity could come in the coming weeks, when Congress considers emergency legislation to provide new aid to Ukraine and funding for the reconstruction of Baltimore’s collapsed Francis Scott Key Bridge.
“If Congress does not act to extend funding for this program, these 23 million households will lose this benefit and see Internet costs rise,” Senior Advisor to the President Stephen Benjamin said in a recent call with the President of the United States. Or lose internet access.” Reporter.
The Federal Communications Commission earlier this year began taking steps to phase out the Affordable Connectivity Program in anticipation of shortages. It halted new sign-ups in February and ordered internet providers in March to start communicating with customers about the potential end of the program.
Previewing the cuts, the Federal Communications Commission (FCC) said Tuesday that most eligible households will receive $14 a month, down from the $30 they receive each month. For those living on tribal lands, the maximum monthly benefit will drop from $75 to $35 starting in May. The program also allows families to receive a credit for qualifying equipment, which will be reduced from the current $100 to $47.