October 5, 2024

Millions at Risk of Losing Affordable Internet Access as FCC Program Nears End of Funding

2 min read

The Affordable Connectivity Program (ACP), run by the Federal Communications Commission (FCC), is nearing the end of its funding, and millions of households could lose their internet access as a result. The program, which was established under the Infrastructure Investment and Jobs Act in 2021, has nearly depleted its $14 billion in funding and is urging Congress for an additional $6 billion to continue its operations for the rest of the year.

The ACP provides a $30 per month stipend for eligible households to help cover the cost of internet service. To qualify, households must meet certain income requirements or currently receive government benefits such as SNAP, Medicaid, or veterans’ pensions. Households on tribal lands could receive up to $75 per month. The benefit is paid directly to internet providers.

The FCC has previously received bipartisan support for the program, with 26 governors emphasizing its importance in a letter to congressional leaders last November. However, some lawmakers have expressed concerns over potential waste and misuse of the benefit, citing a Government Accountability Office report that said the FCC program lacked an anti-fraud strategy. The FCC has since taken steps to mitigate fraud, and has recovered nearly $50 million in ACP funds that were voluntarily paid back from an internet provider that had improperly claimed funds.

The economic and educational impact of cutting or ending the ACP would be significant for millions of families who depend on it. Walter Prescher, a father with 10 children living at home and a disabled veteran, told CBS News that losing the program would be “catastrophic” for some of his clients, particularly those in rural areas where internet access is extremely cost-prohibitive.

The FCC estimates that nearly 23 million households could be affected by the end of the program, and that roughly 1,700 internet service providers may cut off service to households no longer supported by the program. Chairwoman Jessica Rosenworcel has urged Congress to provide additional funding to continue the program, warning that millions of households will lose the ACP benefit they use to afford internet service if Congress does not act soon.

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