The End of the Affordable Connectivity Program: What Next for Consumers?

The End of the Affordable Connectivity Program: What Next for Consumers?

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Updated May 8, 2024
The End of the Affordable Connectivity Program:
What Next for Consumers?
Introduction
4 in 5 “older adults say they want Congress to appropriate
The Federal Communications Commission’s (FCC’s)
money for the program,” according to survey results.
Affordable Connectivity Program (ACP), established by the
If Congress does not provide additional funding for the
Infrastructure Investment and Jobs Act (P.L. 117-58) in
ACP, ACP participants may seek other options for
2021, provides a subsidy toward monthly internet access
affordable home internet. While there is no single
payments for most households that earn up to 200% of
alternative that would fully replace the ACP, there are other
federal poverty guidelines. The subsidy is $30 per
programs that some participants may qualify for, such as
household and $75 per household on tribal lands. ACP also
the FCC Lifeline program, various Department of Veterans
provides a one-time subsidy of up to $100 toward the
Affairs (VA) programs, and discounted plans from
purchase of a connected device (e.g., mobile phone, laptop).
providers. Consumers may be eligible for more than one
Currently 23 million U.S. households receive ACP support.
program. For example, a veteran would be eligible to
The last full funded month for ACP is April 2024. The
participate in Lifeline and VA programs, as well as
program stopped accepting applications February 7, 2024.
subscribe to a discounted service from a broadband
provider.
On April 9, 2024, the FCC announced reduced maximum
reimbursements for May 2024, the final month of the
Congressional Action and Options
program (Table 1).
On May 7, 2024, Senator Ben Ray Lujan filed an
Table 1. Affordable Connectivity Program Benefit
amendment (S.Amdt. 2024) to the Federal Aviation
Types and Amounts
Administration reauthorization bill (H.R. 3935) to allocate
$6 billion to the ACP for FY2024. Two additional bills
Statutory
Max Reimbursement
introduced in the 118th Congress would appropriate funds
Benefit Type
Max Amount
for May 2024
for ACP: H.R. 6929 and S. 3565. These bills would each
appropriate $7 billion in FY2024, to remain available until
Non-Tribal
$30 per month
$14
expended. Both bills were introduced on January 10, 2024,
Service Benefit
and referred to their respective Appropriations Committees,
but no further action has been taken on either bill.
Tribal Lands
$75 per month
$35
Service Benefit
Instead of a one-time supplement, another option for
Congress could be to provide ongoing support for ACP
ACP
$100 per device
$47
through a fee assessed to service providers, like FCC
Connected
programs under the Universal Service Fund (USF).
Device Benefit
Whether it provided ACP a one-time supplement or
Source: Federal Communications Commission, Wireline
ongoing funding, Congress could consider changing the
Competition Bureau Announces the Maximum Partial
income or other enrollment requirements (e.g., making
Reimbursement Amounts for May 2024, Affordable Connectivity
them more or less stringent to affect enrollment or set limits
Program Benefits, WC Docket 21-450, DA 24-342, April 9, 2024,
on the time participants could remain in the program) to
https://docs.fcc.gov/public/attachments/DA-24-342A1.pdf.
adjust the structure of the program.
Impact on Consumers
Apart from providing ACP additional funding, Congress
According to the White House, beneficiaries of the program
could expand the eligibility requirements and increase the
represent “
subsidy provided by the USF’s Lifeline program
communities that have been left behind for too
. It could
long.” Roughly half of ACP households are military
decide not to provide ACP additional funding, determining
families, roughly a quarter are Black, and roughly a quarter
that existing subsidy programs are adequate.
are Latino. ACP provides benefits to 320,000 households
FCC Lifeline Program
on tribal lands. According to the White House, 4 million
seniors and 10 million Americans over the age of 50
The FCC’s Lifeline program subsidizes the cost of home
“benefit from this program.”
broadband and phone service for low-income consumers,
including seniors. While the goals of the ACP and the
According to a Benton Strategy Group survey, 95% of ACP
Lifeline program overlap, Lifeline is funded through the
participants say the end of the program will cause financial
USF. The USF is supported by required contributions from
difficulties and 65% fear losing their job or source of
telecommunications carriers—costs commonly passed on to
income if they lose ACP benefits. AARP reports that nearly
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consumers. USF funds cannot be transferred and used for
Internet Service Provider Programs for
non-USF programs such as the ACP.
Low-Income Consumers
Some internet service providers (ISPs) offer reduced rates
Lifeline Subsidies for Low-Income Consumers
for some low-income consumers. Table 3 lists some of
The Lifeline subsidy provides $9.25 per month to low-
these ISP programs. Eligibility and prices vary. The FCC’s
income households for home internet or mobile phone plans
broadband map allows consumers to find local ISPs.
(households on tribal lands can receive up to $34.25 per
Table 3. Some ISP Programs for
month)—well below the subsidy offered by ACP. Its
Low-Income Consumers
eligibility requirements are stricter than those of the ACP:
households that earn 135% or less than the federal poverty
Max Speed,
guidelines may qualify. Participants in the following federal
Program
Monthly Price
Mbps
programs qualify for the program: Medicaid Supplemental
Nutrition Assistance Program (SNAP), Supplemental
Access from AT&T
$30
100
Security Income (SSI), Federal Public Housing Assistance,
Astound Internet First
$10
50
tribal programs, and residents of federally recognized tribal
lands. Table 2 lists the maximum income requirements for
Cox Connect2Compete
$10
100
the program.
Cox ConnectAssist
$30
100
Table 2. Lifeline Eligibility, 2024,
Annual Household Income
Mediacom
$10
25
Connect2Compete
Contiguous
Optimum Advantage
$15
50
Household
States
AK
HI
Spectrum Internet Assist
$25
50
1
$19,683
$24,584
$22,640
Verizon Forward
$20-$81
50-2,000
2
$26,622
$33,264
$30,618
WOW! Internet Select 50
$10
50
3
$33,561
$41,945
$38,597
Xfinity Internet Essentials
$10
50
4
$40,500
$50,625
$46,575
Source: CNET, “Affordable Connectivity Program Expires Soon:
5
$47,439
$59,306
$54,554
These Low-Income Internet Options Can Help Fil the Void,” April
10, 2024, https://www.cnet.com/home/internet/affordable-
6
$54,378
$67,986
$62,532
connectivity-program-expires-soon-these-low-income-internet-
options-can-help-fil -the-void/.
7
$61,317
$76,667
$70,511
Note: Mbps = Megabits per second.
8
$68,256
$85,347
$78,489
Selected Additional Resources
Each Add’l
$6,939
$8,681
$7,979
In addition to federal programs, there are non-profit
Source: Universal Service Administrative Company, “Do I Qualify?”
organizations that provide resources to help with monthly
https://www.lifelinesupport.org/do-i-qualify.
internet costs and/or provide internet-connected devices.
Resources
For example
Lifeline Program: Do I Qualify?
• Connect All provides refurbished computers to some
Apply for Lifeline
low-income users.
Programs for Veterans
• EveryoneOn helps consumers find low-cost internet
Veterans may be eligible for specific programs
plans and computers, enroll in digital skills courses, and
administered by the Department of Veterans Affairs.
find local events that distribute devices.
According to the FCC, 15% of veteran households do not
• Human-I-T sells refurbished devices at a discount and
have a way to connect to the internet at home. The VA
offers low-cost internet using mobile hotspots to
Telehealth Services has developed the Digital Divide
military veterans, low-income households, seniors, and
Consult and the Connected Device Program to help
other qualifying groups.
qualifying veterans receive VA-loaned equipment to access
telehealth services and benefits.
For additional reading, see CRS Report R47621, The
Future of the Universal Service Fund and Related
Many veterans are eligible for Lifeline benefits, including
Broadband Programs, by Patricia Moloney Figliola.
those who meet eligibility requirements, or participate in
the federal programs listed above, or in the VA pension and
Patricia Moloney Figliola, Specialist in Internet and
VA survivors’ pension programs.
Telecommunications Policy
Resources
Telehealth VA: Bridging the Digital Divide
IF12637
Connecting Veterans to Telehealth Care

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The End of the Affordable Connectivity Program: What Next for Consumers?

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