Today marks the End of the Affordable Connectivity Program, a landmark U.S. government law aimed at making it easier for people to afford internet access in their homes. Ending the program represents a major shift because the termination of benefits will affect millions of Americans who may need them most.
What is the Affordable Connectivity Program?
In 2021, the U.S. Congress passed the $1.2 trillion Infrastructure Investment and Jobs Act, also known as the “Bipartisan Infrastructure Deal.” It was a massive, ambitious bill aimed at shoring up a range of struggling industries, including transportation networks, energy systems and public utilities. The ACP was part of this deal. It provided $14.2 billion to fund loans that could help low-income households afford high-speed internet. If a family’s household income was below 200 percent of the federal poverty guideline per year, they were eligible for a $30 monthly credit on their broadband bill. People living on tribal lands were eligible for up to $75.
Today all that disappears.
This is certainly not an ideal situation, considering that access to the internet is a necessity in modern society, especially in the post-Covid era where remote work has been normalized. The inability to get online can lead to a widening digital divide, where people without internet access can fall behind socially and economically. Americans who rely on the rebate will see their internet bills skyrocket, and they may be forced to offset the increased costs by paying for groceries, rent and other essential needs. Not to mention that many AKP beneficiaries relied on getting their internet for free; The White House’s initial urging led many internet providers to offer plans with download speeds of at least 100 Mbps for $30 per month. Customers who used their ACP benefits on these plans received free internet access. Starting tomorrow they have to pay for it.
Why is the ACP expiring?
The problem is financing. As with all federal funding, there is a limit to how long a program can run without being renewed by Congress. The Biden administration has made several appeals to lawmakers to save the program, including last October in which it called for a $6 billion investment to continue the program, among other domestic spending. Despite this, and despite numerous appeals from advocacy groups and organizations such as the Federal Communications Commission, these attempts came to nothing and the program has officially expired.
Who is affected?
According to the White House, more than 23 million households have benefited from the program since it took effect. That’s a staggering number – about one in six households – that will now have to find another way to find the means to stay connected.
The end of the AKP is not exactly a surprise to the organizations that support it. In anticipation of future funding constraints, the ACP stopped accepting applications for the program in February 2024. According to the U.S. Federal Communications Commission, networks are required to notify users that the program is ending, so affected households should receive notices of winding down.
What happens next?
Unfortunately, all families who received the ACP benefit will have to pay full price for their internet connections – assuming they can afford it. If a household’s income is below 200 percent of the federal poverty level, or if the household receives other government benefits such as SNAP, Medicaid or Social Security, there is a way to achieve a similar, albeit much smaller, reduction in internet costs. The Universal Service Administrative Company offers a service called Lifeline that can pay up to $9.25 per month for a connection (and up to $34.25 per month for those living on qualified tribal lands).
In a press conference yesterday, White House press secretary Karine Jean-Pierre reiterated the Biden administration’s stance on pushing major telecommunications companies to continue complying with ACP rules despite a lack of funding, saying: “We announced earlier this month “We encourage providers to take action to keep their consumers connected through super-cheap, free plans at this crucial time.” However, it is unclear whether any of the providers will be willing to join in.
If you are affected, your internet provider should have already sent you two notifications about your service. If this is not the case, you should contact your provider. Ultimately, affected users must decide whether they want to continue their service at the new price. The FCC has an ACP settlement information page and also encourages complaints to be filed there.