According to the latest announcement from the U.S. Federal Communications Commission (FCC), starting in May, the government will only be able to pay about half of the benefits to low-income households under the Affordable Connectivity Program (ACP). This move could put millions of households in a precarious situation in the coming weeks as they will have to pay hundreds of dollars more each year to access the internet.

j1w07tap.png
The ACP is a welfare program that emerged in 2021, offering discounted internet services to low-income households in the US. (Photo: Bloomberg)

The FCC's announcement reflects the first concrete impacts of the U.S. Congress not renewing the ACP. Introduced during the Covid-19 pandemic, the program reduced monthly internet service fees for more than 23 million households, including seniors, veterans, and students.

Due to dwindling funds, April will be the last month ACP can provide full benefits to eligible recipients. The program only has enough money to support 46% of its usual benefits in May before shutting down completely. After that, households may have to pay hundreds of dollars more each year to continue their internet connection or give up. Many ACP subscribers have told CNN that without help, they will have to choose between paying for internet and food.

When Congress announced the ACP in 2021, they committed to reducing the price of internet service for eligible low-income households by up to $30 a month or $75 a month for tribal households. The government funded the program with $14 billion. To date, that funding is running out, and Congress has yet to extend it. The administration of U.S. President Joe Biden blames Republicans in Congress for blocking legislation that could extend the ACP.

House Speaker Mike Johnson declined to say whether he supported the bill, while Senate Majority Leader Chuck Schumer said he supported passing additional ACP funding.

On Wednesday, a bipartisan bill to approve $7 billion in new funding for the ACP attracted two Senate donors: Ohio Democratic Senator Sherrod Brown and Kansas Republican Senator Roger Marshall.

Internet service providers (ISPs) can still voluntarily intervene to bridge the digital divide for millions of Americans potentially affected when the program ends, the FCC said. "We encourage providers to make efforts to keep consumers connected at this critical time," meaning ISPs could offer their own discount programs, shift users to proprietary low-cost internet plans, or take other measures to ensure internet service for low-income Americans is not interrupted.

If the ACP collapses, low-income households will have to find other ways to get online. Kamesha Scott, a 29-year-old mother living in St. Louis who works two jobs, shared that she will have to work extra shifts to make ends meet. That means even less time to care for her two children.

Others might consider using free Wi-Fi at fast-food restaurants, school parking lots, or other public spaces. Or, they might revert to mobile data services if the rates remain affordable. Nearly a third of the 123,000 public libraries in the U.S. are renting out mobile hotspots, allowing visitors to borrow a small, hand-sized device to broadcast a cellular signal, replacing home internet service. However, the signal is quite 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 level is lower than ACP: $9.25/month for ordinary households and $34.25 for tribal households.

(According to CNN)