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Affordable Connectivity Program Faces Funding Shortfall

Chris Lewis, President and CEO of Public Knowledge, speaking about the Affordable and Connectivity Program, ACP, at the Shaw Library in Washington, Tuesday, April 30, 2024. Advocacy groups and policym

Approximately 23 million families across the United States are set to experience an increase in their internet bills come May, as a federal broadband subsidy program they are enrolled in is on the brink of running out of funds. The Affordable Connectivity Program, a subsidy designed to assist households with limited financial means in paying their broadband bills, is facing an imminent expiration at the end of May.

The program, which was created by Congress and championed by President Joe Biden as part of efforts to ensure widespread internet access, has been instrumental in providing qualifying households with a monthly subsidy of $30 to offset their internet costs. For households residing on tribal land, the subsidy amount was increased to $75.

However, with the program's funds dwindling, enrolled households will soon see a reduction in the assistance they receive, with only partial credits being applied towards their internet bills starting in May. Unless Congress takes action to inject additional funding into the Affordable Connectivity Program, the subsidies are slated to cease entirely by the end of the month.

During a recent gathering at a Washington public library, stakeholders, including Biden administration officials, advocates, and lawmakers, emphasized the critical importance of extending the program. The looming expiration of the Affordable Connectivity Program has raised concerns about the potential repercussions for households heavily reliant on internet access for tasks such as remote work, education, and meeting essential needs.

Affordable Connectivity Program set to expire, impacting households with limited financial means.
23 million families to see internet bill hikes due to subsidy program funding shortage.
Program provided $30 monthly subsidy for internet bills, $75 for tribal land households.
Funds running low, leading to partial credits in May and potential full cessation.
Stakeholders emphasize importance of extending program for internet-dependent households.
Survey shows 80% of program enrollees may downgrade or disconnect without subsidy.

A survey conducted by the FCC revealed that nearly 80% of households enrolled in the program would be compelled to downgrade their internet plans or discontinue their service altogether without the subsidy. The prospect of facing higher internet bills or disconnecting from the internet poses a significant dilemma for many families grappling with financial constraints.

Efforts to prolong the program have been underway, with bipartisan legislation introduced to extend it through the end of the year with an infusion of $7 billion. While the White House has advocated for an extension, concrete steps to secure additional funding for the Affordable Connectivity Program have yet to materialize.

The urgency of the situation has underscored the broader issue of ensuring equitable access to high-speed internet, which has become increasingly indispensable in the modern economy. As the debate continues, the fate of millions of American families hangs in the balance, awaiting a resolution that will determine the future of their internet connectivity.

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