Millions of Low-Income American Households Face Potential Economic Hardships as Affordable Connectivity Program Funds Run Out
The US government has announced that starting next month, it can only provide half of the eligible benefits under the Affordable Connectivity Program (ACP) to over 23 million qualifying low-income American households due to insufficient funds. This development poses a significant threat of pushing millions of families into economic distress within the coming weeks (Brown, 2023).
The Federal Communications Commission (FCC) made this revelation on Tuesday, indicating that April would be the final month for full ACP benefits. In May, the program will only have enough resources to provide partial benefits before ceasing operations altogether (Associated Press, 2023).
Consequently, ACP subscribers will receive only 46% of their usual benefits in May. Afterward, they might be required to pay hundreds of dollars more annually to maintain their internet access or face the possibility of having to abandon the service entirely (News Finder, 2023).
Millions of seniors, veterans, and schoolchildren who depend on this crucial program have shared their concerns about the potential impact of these changes. Many have expressed that they may be compelled to make difficult decisions, such as choosing between paying for internet access and purchasing essentials like food (News Finder, 2023).
The ACP was established in 2021 by Congress to offer qualifying low-income households discounts of up to $30 per month on internet service or $75 per month for those residing on tribal lands. The program was funded with a one-time infusion of $14 billion (News Finder, 2023).
However, as the funds begin to dwindle, Congress has yet to renew the program. The Biden administration has criticized congressional Republicans for obstructing legislation that could extend the ACP and safeguard Americans from unexpected bill increases (Brown, 2023).
Internet service providers (ISPs) have the power to bridge the gap for those potentially affected by the termination of the ACP, as per the FCC’s announcement on Tuesday. The agency urged ISPs to take measures to ensure that low-income American consumers’ internet service remains uninterrupted during this critical time (FCC, 2023).
ISPs could offer their own discounts, transition consumers to proprietary low-cost internet plans, or adopt other strategies to minimize the impact of the ACP’s impending termination. News Finder has reached out to major ISPs for their stance on the FCC’s call for voluntary measures (News Finder, 2023).
References:
Brown, M. (2023). Millions of Americans could soon lose home internet access if lawmakers don’t act. News Finder.
Associated Press. (2023). FCC: April will be final month for full Affordable Connectivity Program benefits. AP News.
News Finder. (2023). Millions of Americans could soon lose home internet access if lawmakers don’t act. News Finder.
FCC. (2023). Affordable Connectivity Program. Federal Communications Commission.
