Affordability/Cost/Price

On May 1, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel wrote to Congressional leaders with a final update on the Affordable Connectivity Program (ACP). April was the last month of full funding for the program, which will fully exhaust during May without additional funding from Congress. "If additional funding is not promptly appropriated, the one in six households nationwide that rely on this program will face rising bills and increasing disconnection.

Slowing growth in the market for telecommunications services appears to be putting additional pressure on network operators in the US. Mergers and acquisitions are on the rise. Layoffs appear to be accelerating.

On May 2, the Senate will hold a hearing on “The Future of Broadband Affordability.” The Affordability Connectivity Program (ACP) that provides subsidies for more than 20 million low-income households will expire in May. Without the extension, these families will see the cost of the internet service increase by up to $30 per month and prompt some families to drop internet service altogether.

Sen John Fetterman (D-PA) introduced the Promoting Affordable Connectivity Act which would sustainably fund the Affordable Connectivity Program (ACP) by removing it from the appropriations process and incorporating it into Universal Service Fund (USF) distribution. The ACP has provided discounts on internet service to more than 23 million households—including over 700,000 in Pennsylvania—that could not otherwise afford it.

More than 23 million low-income American households will soon see a new line item in monthly expense statements: prohibitively expensive internet bills. For some, the new cost will eat into other essential areas of their budget—for others, it will mean going without the internet altogether. While the federal price tag for monthly internet subsidies under the Affordable Connectivity Program comes to $8.4 billion annually, our research indicates that, for low-income communities, the economic impact of losing the ACP will be more than twice that.

May 1 begins the final month that Affordable Connectivity Program households will receive any benefit on their internet bills. Without Congressional action to extend funding for the program, millions of Americans will see their internet bills go up or lose internet access at the end of this month.

A group of bipartisan US senators and representatives have called for an additional $7 billion that would extend the Affordable Connectivity Program through the end of 2024. The White House has expressed support, but the proposal hasn’t yet advanced in Congress. In the meantime, some ISPs are offering short-term subsidies and new discount plans to try to support low-income households that were previously relying on ACP.  First implemented in 2021, the ACP was part of a massive, $1.2 trillion Biden administration deal called the Infrastructure Investment and Jobs Act.

Since 2021, struggling Americans have made ends meet with the help of a popular federal benefit known as the Affordable Connectivity Program (ACP), which covers home internet service. But in just a few weeks their internet bills could skyrocket by hundreds of dollars a year. That’s because the ACP is running out of funds—and Congress shows no signs it will approve more. Policy experts have described the situation as a fast-approaching economic crisis and a major step backward for closing the digital divide between internet haves and have-nots.

Twenty-three million families in the U.S. will have bigger internet bills starting in May. That’s because a federal broadband subsidy program they’re enrolled in is nearly out of money. Dozens of people joined Biden administration officials, advocates and Sen.

ECFiber customers in danger of losing a $30 monthly credit on their bill as the federal Affordable Connectivity Program (ACP) expires will receive a one-month extension directly from ECFiber. The decision was made by the executive committee in hopes that the ACP program funding will be replenished by congressional action in the coming weeks. “We can move quickly because we are a small community-oriented ISP,” said committee member Irv Thomae, who chaired ECFiber for many years, “but we cannot provide this support on our own for very long.” ECFiber has also been enhancing the ACP benefit by