California Public Utilities Commission Eyes Big Changes to Low-Income Internet Subsidies

An impending vote by the California Public Utilities Commission (CPUC) could drastically change access to state and federal communications subsidies, the kind often relied upon by low-income households for Internet and telephone services. Proposed Decision 20-02-008 addresses whether recipients of federal subsidies through the Affordable Connectivity Program (ACP) and similar federal subsidy programs would also be able to receive maximum subsidies through the California LifeLine program.  As written, the decision would cap the state funding if a recipient was getting more than $9.25 in federal assistance. Opponents of the decision say the rulemaking would ultimately hurt low-income households, while proponents say it’s a step in the right direction to limit the profits that service providers can make from state and federal subsidy programs. However, opponents argue that because the decision would deny low-income California households from combining state and federal support, meaning the state and federal lifeline program support and the ACP support, it could limit access for low-income Californians. The CPUC will vote on the proposal on September 15th.