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The Affordable Connectivity Program is expiring this April but no renewal has been approved yet
A $7 billion renewal bill was proposed but it has not been voted upon
This can make the Internet unaffordable for 60 million Americans
The Affordable Connectivity Program (ACP) is running out of funding and the Congress seems to be doing nothing about it.
The ACP is a government-run program that provides aid to almost 60 million Americans for their internet bills – 20% of all households. The program was first introduced in 2021 with a funding of $14 billion. The grant provides:
$30 per month to qualifying low-income households
Up to $75 per month for eligible recipients on tribal lands
A bill named the Affordable Connectivity Program Extension Act was proposed earlier this year with a $7 billion extension for ACP. However, the bill has not yet gone to the floor for voting.
Experts believe it is now or never for the ACP program with the current program expiring in April 2024. Gigi Sohn, an ex-FCC official, has blamed US politics for this ‘calamity’.
More funding is urgently needed to keep the ACP in place so that it can continue to support the households that rely on it.Jessica Rosenworcel, FCC chairwoman
This political gameplay comes at the cost of millions of Americans who will be faced with a tough choice between paying their internet bills and essential utilities like food and rent.
The Need for ACP
The ACP has been one of the most popular government policies in recent times and for good reason too. It has helped bridge the gap between internet providers and consumers.
Before the program, millions of Americans had limited internet options, especially in rural areas. Setting up a fiber connection was simply not feasible for the providers due to a lack of demand.
Even if they did establish a connection, most households could not afford it. According to a November 2022 report, the median cost of the internet in the US is around $75.
However, with the ACP program, more Americans have been able to get access to the internet, which has propelled the growth of the US telecom sector.
A recent FCC survey throws more light into how crucial the ACP has been for the average US citizen.
68% of respondents admitted to having no internet or inconsistent internet prior to ACP.
72% of respondents said they use the ACP program to schedule healthcare appointments, while 48% use it for work purposes.
77% of people would be affected if the ACP isn’t renewed soon. They will either have to switch to a lower plan or stay without an internet service.
These numbers highlight the gravity of the current situation. Considering the number of Americans likely to be affected by ACP, Biden’s inactivity might prove to be costly. After all, you wouldn’t want to anger a massive portion of your voters in an election year.
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