What Happens When the ACP Program Ends?

What Happens When the ACP Program Ends?

How the ACP Helps

Over 23 million American households currently rely on the Affordable Connectivity Program (ACP) to make their internet access affordable.

This vital program offers eligible low-income families $30 in monthly payment assistance for internet service. Households on tribal lands are eligible for a $75 monthly subsidy for their internet.

Having a home internet connection is key to online education or applying for a job. That’s why experts call internet access “digital opportunity.”

When you don’t have digital opportunity to get jobs or schooling, you are on the wrong side of the “digital divide.”

The ACP was created to close the digital divide and create more opportunity for everyone. But the ACP program may be coming to a close.

Is the ACP Ending Soon?

Funding for the ACP is expected to run out by April 2024. Congress could possibly take action to extend the program. So far, though, no legislation has made it to a vote.

Without action from Congress, the ACP will certainly run out of funding by April, if not before.

Without action from Congress, the ACP will end

Who Is Eligible for the ACP?

The ACP has strict requirements about who qualifies for assistance. One way to qualify is to be part of a federal assistance program for low-income families such as SNAP or Medicaid. Another way is if you make under 200% of the HHS Poverty Level.

So, in 2024, if you are living in a household of 2 and your whole household earns under $41,000 per year, you would be eligible for the ACP. Two people living on only $41K would have trouble making ends meet with today’s high rent and food prices. That’s why assistance might be necessary.

Many ACP enrollees are elderly, which means they are unlikely to be able to work and may be on fixed incomes. The table below shows that 1 in 5 of the people getting ACP support are elderly [1].

Total Enrolled ACP Subscribers by Age

The ACP helps senior citizens

Hardship for Low-Income Families with ACP Ending

The end of the ACP will bring challenges for millions of low-income Americans who depend on the program.

For many people, the $30 monthly subsidy is the difference between having internet access or not. Shirleen Alexander, a senior citizen on a fixed income in North Carolina, said that if the ACP goes away, “It would be like taking food out of my mouth" [2]. She and millions like her simply cannot afford internet access without assistance.

Losing internet access has cascading negative effects. It cuts people off from job opportunities, educational resources, healthcare information, government services, and more.

Internet access is no longer a luxury – it is an essential utility for full participation in society. Ending assistance programs like the ACP turns back the clock on progress made in connecting disadvantaged groups.

Damage to Rural Broadband Providers

The loss of the ACP would also deal a major blow to small, rural internet providers. Over half of ACP subscribers use the subsidy to buy broadband from local telecom companies rather than giant corporations.

The ACP provides a reliable source of income for these small operators, enabling them to expand networks in rural areas.

Without the ACP’s guaranteed subscriber base, experts warn many of these providers could face dire financial situations. Some may be forced into bankruptcy. That would mean less competition/higher prices in rural markets and perhaps even loss of service to those areas [3].

After all the recent investments into expanding rural broadband access, letting the ACP expire is likely to undermine those efforts.

Rural internet providers may close down

Harm to the Broader Economy

Defunding the ACP could also harm the American economy as a whole.

Extensive research shows that increasing broadband adoption and access boosts employment rates, household incomes, innovation, economic growth, and more [4,5,6].

By disconnecting millions of Americans, ending the ACP will hurt the whole nation’s economic potential.

Letting the ACP expire after spending billions expanding broadband networks is a government decision lacking in all common sense.

Alan Davidson of the NTIA testified to Congress that “[The United States] won’t be able to reach our goal of affordable networks without [the ACP]" [7].

Building infrastructure is only part of the solution for digital opportunity. People also have to be able to afford their home internet connection.

Lost Digital Opportunity with ACP Program End

The bipartisan infrastructure bill established the nationwide ACP initiative in 2021. Over two years, the program has successfully connected tens of millions of low-income families to essential internet access.

Now, just as the digital divide seemed to be closing, the assistance millions rely on may disappear.

Allowing the ACP to sunset after such tremendous progress would be foolish. And the consequences of leaving large numbers of low-income people with less access to online jobs or schooling would be tragic.

If you want to support the ACP, call on your representatives to fight to continue it. Here is how you find your representative in the House [8]. You can also contact your senator [9].

Lost digital opportunity

When Will ACP End Exactly?

Because the ACP ends when the money runs out, there is not an exact date for the ACP ending. But we know that it is likely to end by April 2024 based on current projections.

What Current ACP Users Should Expect

If you are on the ACP now, here is what is going to happen in the next few months.

During the wind-down period, your internet service provider will be sending you notices about how the potential end of the ACP may impact your bill and service options.

These notices will inform you about:

• the ACP ending
• when you will receive your final discounted bill under the program
• what your new bill will be after the ACP program ends

You can opt to change your internet service plan or stop your service altogether. You won’t have a penalty, even if you are under contract. Make sure you discuss your options with your provider.

It’s still possible that Congress to allocate renewed funding to extend the ACP.

But because enrollment froze as of February 8, 2024, you should make plans as if the discounts will end in April.

If you have any questions about the status of the ACP or changes to your internet bill, contact your service provider directly.

Ask what alternative plans may be available to help maintain internet connectivity in your household.

Some ISPs have discussed continuing a low-cost internet plan if Congress fails to extend funding for the Affordable Connectivity Program.

For example, Spectrum has a low-cost plan called Internet Assist for low-income households, including seniors [10]. That’s why it is so important to talk with your internet provider and make sure you know about all available options.

Ask your internet provider about options

FAQs About the ACP Program End

Is the ACP ending soon?

Without government action, the ACP will end when it runs out of funding, in March or April 2024.

Will Congress extend the ACP?

Legislators introduced the ACP Extension Act in January 2024 to add $7 billion in funding, but the legislation has not made any progress.

What do I do if I can’t afford internet without the ACP?

Contact your internet provider and see what offers they may have. Also, contact your representative and senator to let them know how hard this change will be for you.

Is there affordable internet for seniors?

Some providers offer less expensive plans for low-income seniors. Check with your provider to find their cheapest internet plans.

How do I find affordable home internet?

We had affordable internet under the ACP. Tell your representative in the House and your senator that you want them to continue the ACP [8,9].

Will a different provider give me more affordable home internet?

Enter your zip code to see all your provider options in your area.

Why is high-speed home internet important?

Fast, reliable home internet allows people to study at all levels of school. It also provides job opportunity. Many job applications and government forms now require online applications. Remote work opportunities also require fast home internet.

Even shopping can be better online because you can sometimes find ways to save money. Home internet is also more secure than trying to use public Wi-Fi.

What if I don’t know how to find my way around the internet or find jobs?

Try our beginner’s guide to using the internet! Soon you will be able to search and apply for jobs online.

Sources

[1] USAC.org. “Additional ACP data."

[2] APNews.com “Biden’s vow of affordable internet for all is threatened…"

[3] Brookings.edu. “Everyone loses if the Affordable Connectivity Program ends."

[4] NIH.gov. “Broadband adoption and availability."

[5] American Economic Association. “Wired and Hired: Employment Effects of Subsidized Broadband Internet for Low-Income Americans."

[6] ScienceDirect.com. “Broadband׳s contribution to economic growth in rural areas."

[7] LightReading.com. “Lapse in ACP funding will have negative effect on BEAD."

[8] House.gov. “Find Your Representative."

[9] Senate.gov. “Contacting U.S. Senators."

[10] Spectrum.com. “Spectrum Internet Assist."

Support digital opportunity