The Affordable Connectivity Program (ACP) is a federal benefit that helps qualifying low-income households pay for internet service and devices. Since January 2022, the ACP has grown to help over 22 million U.S. households (roughly one in six of all Americans) access the internet. However, the ACP is running out of funding. Congress originally appropriated $14.2 billion for the ACP, but over time that amount has been spent down to the point where the ACP is on course to run out of funding this Spring. Congress may yet appropriate additional funds, but, since that is not certain, the Federal Communications Commission (FCC) must proceed as if the program will end. Therefore, on Thursday, January 11, 2024, the FCC released guidance for the wind-down of the program. The guidance aims to inform interested parties about:

• The process for notifying enrolled ACP households about the impact of program termination on their broadband service and bills;
• Freezing of new enrollments in the program;
• Advertising, awareness, and outreach requirements for providers and outreach partners; 
• The timing of claims submissions; and 
• Participation during a possible partially funded month of ACP.   

Here are the highlights.

The Wind Down Process

Final Month: The FCC declined to officially announce the ACP’s final month of operation, but estimates April 2024 will likely be the last month participants receive the full benefit. The FCC declined to announce a final month because of the possibility that changes in future enrollment and/or additional funding from Congress could still affect the ACP’s timeline. However, the FCC committed to making an announcement approximately 60 days prior to the end of that final month. If, as the FCC currently estimates, April is the final month, then the 60-day announcement will occur in late February 2024.

Consumer Notifications from Providers: Providers are required to send three written notifications to consumers about the end of the ACP. The first notice must be sent by January 25th. The second notice must be sent 15 days after the FCC announces the ACP’s final month (if April is the final month, the second notice will be sent mid-March). The third notice must coincide with the last bill or billing cycle in which the ACP is applied. All three notices must alert the consumer about the end of the ACP and the potential impact on their broadband service and bills. The second and third notices must additionally specify the final month the customer will receive discounted service and the undiscounted rate for the customer’s broadband service thereafter—as well as remind the consumer of their ability to change or cancel service.

Consumer Notification from Government: The FCC and the Universal Service Administrative Company (USAC), which administers the ACP for the FCC, are preparing to send multiple notices to consumers, although the cadence and content of these notices are not specified. The FCC and USAC will also update their consumer-facing websites and material to communicate end-of-program information. As an example, see the FCC’s recently updated ACP page.

Protection From Bill Shock: The FCC noted that two elements of the ACP’s existing rules will help protect consumers from bill shock if the ACP ends. The first element is that, as part of the process of applying for ACP-discounted service from a provider, consumers have been required to acknowledge that they will be subject to the provider’s undiscounted rates if the ACP ends. The second element is that, before being subjected to undiscounted rates, the consumer must have demonstrated a “willingness and ability” to pay for internet service. This willingness and ability can be demonstrated in one of the following ways: 

• written or verbal consent to continue providing broadband service after the end of the ACP and to pay a higher rate, 
• a paid subscription with the provider that predates enrollment in the ACP, or 
• having paid some amount out-of-pocket while subscribing to ACP-discounted service.

Enrollment Freeze: The FCC will freeze new consumer enrollments into the ACP beginning on February 8, 2024. Accordingly, new enrollments will be permitted until February 7 at 11:59 p.m. EST. The FCC will also freeze the process by which new providers can apply to participate in the ACP. The FCC finds that these freezes will make the ACP’s wind-down more predictable and therefore smoother for consumers, providers, and the agency itself.

Required Promotion by Providers: While the enrollment freeze is in place, the FCC will waive the requirement that providers promote ACP enrollment. Conducting campaigns informing consumers about the end of the ACP will be considered to be in compliance with the FCC's promotion rules.

ACP Outreach Grant Programs: While the enrollment freeze is in place, the FCC will provide instructions to grant recipients on the need to cease grant-funded outreach work and other activities that focus on enrollment activities.

What's Next?

The following is a timeline of events that will occur as the ACP winds down. Please note, elements of this timeline are subject to change if Congress appropriates additional funds and/or changes in enrollment have a significant impact on the rate of ACP expenditures.

Anticipated ACP Wind-Down Timeline

January 25, 2024—First notification. Providers must send notice to consumers.

February 8, 2024—Enrollment freeze. Consumers may no longer enroll in the ACP. 

Late February, 2024—End date announced. FCC announces ACP end date 60 days prior to the last day of the final full month.

Mid March, 2024*—Second notification. Providers must send notice to consumers 15 days after announcement of the ACP end date.

April, 2024*—Third notification. Providers must send notice to consumers during the final discounted billing cycle. 

May, 2024*—Bills increase. ACP discounts are reduced or stop entirely.

* Assumes April 2024 is the last fully funded month
 

Drew Garner is the Director of Policy Engagement at the Benton Institute for Broadband & Society

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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