The Affordable Connectivity Program (ACP) will end after April 2024 due to lack of funding. Low-income families using the program will no longer receive a $30 discount on home internet service.
Internet access subsidies are an important part of the U.S. response to the COVID-19 pandemic. The 2020 CARES Act includes an emergency broadband benefit program to help low-income families afford internet service for working and attending school remotely. Home internet subsidies were originally scheduled to end after 2021, but were extended through the Affordable Connectivity Program (ACP) of the bipartisan infrastructure bill.
A 2023 study showed that 14% of U.S. households were enrolled in ACP. In total, there are approximately 18.5 million households. According to the FCC, approximately 75% of participants believe they will experience service disruptions when the ACP ends.
Most service providers have a $40 or $45 monthly plan specifically for ACP service. Through these programs, families participating in ACP pay only $10 per month for Internet access (some families pay even less due to Lifeline benefits). The jump from $10 to $40 is huge and the main reason ACP participants are upset. However, compared to the average home internet price ($75 per month), $40 is relatively cheap.
Service providers have until March 19 to notify customers of the ACP shutdown. Some ISPs may continue to offer cheap services, while others may eliminate their subsidy programs. It’s a scramble. While the ACP still enjoys strong bipartisan support, a last-minute infusion of cash appears unlikely. The ACP received $6 billion in 2023, but is now completely out of money.
If you are an ACP participant facing this shutdown, please wait for more information from your ISP, which should explain any changes to your bill. Some ISPs may take advantage of this situation (in a good way) by introducing new low-cost plans or limited-time promotions. Keep an eye out for deals like this and consider switching to 5G home internet, as it’s often cheaper than traditional broadband.
Subsidies under the Affordable Connectivity Scheme will end on May 1. Please note that ACP participants may be eligible for the Lifeline plan, which provides a $9.25 monthly discount on Internet service.
Source: Federal Communications Commission