The US Federal Communications Commission (FCC) has announced that the government will only be able to pay about half of the benefits to low-income households under the Affordable Connection Program (ACP) starting in May. The move could leave millions of households in a precarious position in the coming weeks, with hundreds of dollars more to spend each year to access the internet.
The FCC’s announcement reflects the first concrete effects of Congress’ failure to renew the ACP, a program introduced during the Covid-19 pandemic that reduces monthly internet service prices for more than 23 million households, including seniors, veterans, and students.
With its budget running out, April will be the last month ACP can provide full benefits to those who qualify. The program only had enough money to cover 46% of its normal benefits in May before shutting down completely. After that, households could have to pay hundreds of dollars more each year to stay connected or go without it. Many ACP subscribers told CNN that without help, they would have to choose between paying for internet and food.
When Congress enacted the ACP in 2021, it promised to give eligible low-income households a discount of up to $30 a month for internet service or $75 a month for tribal households. The government funded the program with $14 billion. That money has since run out, and Congress has yet to renew it. The Biden administration blames congressional Republicans for blocking legislation that would have renewed the ACP.
House Speaker Mike Johnson declined to say whether he would support that bill, while Senate Majority Leader Chuck Schumer said he supported passing additional ACP funding.
On Wednesday, a bipartisan bill to authorize $7 billion in new funding for ACP attracted two Senate sponsors: Ohio Democratic Sen. Sherrod Brown and Kansas Republican Sen. Roger Marshall.
Internet service providers (ISPs) can still voluntarily intervene to close the digital divide for the millions of Americans who could be affected by the end of the program, the FCC said. "We encourage providers to make every effort to keep consumers connected at this critical time," according to the FCC, which could include offering their own discounts, moving users to exclusive low-cost Internet plans, or taking other steps to ensure that low-income Americans' Internet service is not interrupted.
If ACP collapses, low-income households will have to find other ways to get online. Kamesha Scott, a 29-year-old mother in St. Louis who works two jobs, said she will take on extra shifts to make ends meet. That means less time to care for her two children.
Others may consider using free Wi-Fi at fast-food restaurants, school parking lots, and other public spaces. Or they may revert to cellular data service if it remains affordable. Nearly a third of the 123,000 public libraries in the United States offer mobile hotspots, which allow patrons to borrow a palm-sized device that generates a cellular signal, replacing home Internet service. But the signals are weak, and people have to wait in line, at least three weeks, to borrow one.
FCC also has another subsidy program called Lifeline, but the support is lower than ACP: $9.25/month for regular households and $34.25 for tribal households.
(According to CNN)
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