Understanding the Impact: When Will USGifted Internet Subsidies Cease?

Due to a lack of funding, the Affordable Connectivity Program (ACP) will end after April 2024 . Low-income households that utilize the program will no longer receive a $30 discount on home internet service.

Subsidized internet access was a key component of the U.S. COVID-19 response. The 2020 CARES Act, which included an Emergency Broadband Benefit program, helped low-income families afford internet service for remote work and schooling. Home internet subsidies were set to end after 2021, but they were extended through the Bipartisan Infrastructure Bill’s Affordable Connectivity Program (ACP).

A 2023 study shows that 14% of U.S. households are enrolled in the ACP. That’s about 18.5 million households in total. According to the FCC, about 75% of these participants believe that they’ll encounter service disruptions when ACP ends.

Most service providers have a $40 or $45 monthly plan that is dedicated to ACP service. Through these plans, ACP-participating families are paying as little as $10 a month for internet access (some are paying even less due to Lifeline benefits ). The leap from $10 to $40 is massive, and it’s the main reason for discomfort among ACP participants. However, $40 is relatively cheap when compared to the average home internet price—$75 a month.

Service providers have until March 19th to notify customers of the ACP shutdown. Some ISPs may continue offering cheap service, while others may liquidate their subsidized plans. It’s a scramble. And while there’s still plenty of bipartisan support for the ACP, a last-minute injection of cash seems unlikely. The ACP received $6 billion in 2023, but it’s completely out of money today.

If you’re an ACP participant facing this shutdown, wait for additional information from your ISP, which should explain any changes to your bill. Some ISPs may take advantage of this situation (in a good way) by introducing new low-cost plans or limited-time promotions. Keep an eye out for such deals, and consider switching to 5G home internet, as it’s often cheaper than traditional broadband.

Subsidies from the Affordable Connectivity Program end on May 1st. Note that ACP participants may be eligible for the Lifeline program , which provides a $9.25 monthly discount for internet service.

Source: FCC

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