Affordable Connectivity Program (was Emergency Broadband Benefit Program)

In separate conversations with the leaders of two internet service providers, both mentioned that the wind down of the Affordable Connectivity Program (ACP) is at the top of their things-that-keep-me-up-at-night list. Despite the stereotypical caricature of CEOs, these leaders were sincerely concerned and grappling with how to tell customers. This got me thinking about the true cost and fall out from the termination of the ACP.

A program that helped millions of households across the country — and 2.8 million in California — afford internet access is ending, without additional funding from Congress. The Affordable Connectivity Program began in 2021 under the Bipartisan Infrastructure Law. California received about $1.3 billion in funding through the program that helped about 1-in-5 households in the state. The Federal Communications Commission said that current funding is projected to run out in April and households will receive benefits through the end of the month.

Prince George’s County Memorial Library System received a $500,000 Affordable Connectivity Outreach Grant from the Federal Communications Commission in March 2023 to find and connect those living in eligible households with the $30 monthly discount available to home broadband. Libraries in New Jersey, Nashville, and New York City likewise received the outreach grant. After months of hiring, developing their outreach program, and identifying eligible individuals, outreach grantees are hitting their stride.

Charter understands better than most the struggles people face in getting and staying connected: it’s our job and these customers are our family, friends, and neighbors. When a global pandemic pushed so much of everyday life online, the gap between those with and without connectivity was exposed, and many realized for the first time the impossible situation faced by families who either didn’t have internet service available or could not afford service.

Our world increasingly operates online, and the Internet has forever changed our way of life.

The Affordable Connectivity Program (ACP) is helping close the digital divide in America by supporting internet access for over 22 million households. Based on a national survey of ACP Participants conducted by Benenson Strategy Group in collaboration with Comcast, the program is helping people realize the full benefits of the internet—telehealth access, educational resources, increased economic mobility, and improved social connections. The survey found that people are also concerned about what will happen if the program no longer exists.

The Affordable Connectivity Program (ACP) is in grave danger. According to estimates from the Federal Communications Commission, the program will run out of money in April. A wave of sudden disconnects associated with the program’s end could hit ISPs hard. But just how much exposure do they have? And do they have any plans in place to keep vulnerable customers connected? We took the subscriber question straight to the big guns and asked what plans they have for keeping subscribers connected in a post-ACP world. Here’s what they told us (and what we could dig up).

The federal government has spent $12.82 billion in the last two years helping low-income households pay for internet service. Almost a quarter of it has gone to one company. Charter Communications received $3.01 billion through the Affordable Connectivity Program (ACP), a larger slice than any of its competitors.

What does solving the digital divide look like? The simple answer—getting more people online—is tempting, but it’s just a first step. Focusing only on home adoption rates provides a too limited perspective on the benefits of solving the digital divide. Consistency of connectivity is a key issue for low-income households—and this consistency is an important part of what the Federal Communications Commission’s Affordable Connectivity Plan (ACP) offers. For many households, the digital divide is not a one-time bridge to cross. Instead, online connectivity can be episodic.

Today is the first day of the end of the Affordable Connectivity Program (ACP). As you read this, one out of every six American households is being notified that their internet bill may soon spike and potentially become unaffordable. The ACP is a federal benefit that is currently helping 22.8 million low-income households afford internet service. However, the ACP is running out of funding. If Congress does not act soon, the ACP will end this Spring and the millions of people who rely on it will experience a sudden bill shock.