FCC Terminates Affordable Internet Program Due to Funding Shortage

The Federal Communications Commission (FCC) has officially announced the termination of the Affordable Connectivity Program (ACP), a federal initiative that provided internet access to millions of low-income Americans. The program’s closure on June 1, 2024, follows unsuccessful efforts to secure additional funding from Congress.

Despite bipartisan popularity and support from consumer advocates, the program’s expiration threatens to impact nearly 60 million Americans, according to CNN. The ACP, which began during the pandemic, offered eligible households up to $30 per month in internet bill credits, with up to $75 per month available for those on tribal lands.

FCC Chairwoman Jessica Rosenworcel highlighted the program’s significant role, noting that it addressed gaps not fully covered by other subsidy programs. “The Affordable Connectivity Program filled an important gap that provider low-income programs, state and local affordability programs, and the Lifeline program cannot fully address,” she said.

Efforts to extend the program through bipartisan legislation stalled as Republican leaders did not engage with the proposals. President Joe Biden and Democratic lawmakers have publicly criticized the GOP for the program’s end. Biden reiterated calls for legislative action to renew the ACP and announced voluntary commitments from several internet providers, including AT&T, Comcast, Cox, Charter’s Spectrum, and Verizon. These companies have pledged to offer low-cost internet plans to approximately 10 million households, though this covers less than half of the 23 million households that relied on the ACP.

Initially funded with a one-time $14 billion budget, the Biden administration requested an additional $6 billion to continue the program. A proposed bipartisan bill suggested $7 billion for renewal, but no action was taken before the deadline.

Kathryn de Wit, director of the Pew Charitable Trust’s broadband access initiative, expressed disappointment, warning that without the ACP, many low-income families might have to reduce or cancel their internet plans due to rising costs. “Without intervention, households participating in the program will immediately see their internet bills go up,” de Wit stated.