The Affordable Connectivity Program, which provides financial assistance for internet bills to 23 million American households, is set to end at the end of the month. Efforts to save the program have been introduced in the House and Senate, but some lawmakers, including Sen. Ted Cruz, have criticized it as a “massive welfare program.” A bipartisan bill has been co-sponsored by 206 House Democrats and 24 Republicans to expand the program, with many supporters emphasizing its importance for connecting low-income households and veterans to the internet.
The program, which was first allocated $14.2 billion in December 2021, has been used to provide a monthly stipend toward internet bills and a one-time discount for the purchase of a computer or tablet. The current funding is running out, prompting the introduction of a bill to allocate an additional $7 billion to extend the program through the end of the year. This extension would allow Congress to work on long-term changes needed for sustainable access to the internet.
Before receiving the federal subsidy, a significant portion of program participants had no personal internet service or only had mobile internet. A survey by the Federal Communications Commission found that 77% of beneficiaries would need to make changes to their broadband plan if they stopped receiving the subsidy, with 30% saying they would need to drop internet service altogether. This highlights the reliance on the program for access to essential services and information.
It remains uncertain if or when Congress will take up votes to extend the program, with the Biden administration calling for its extension. The end of the program has raised concerns among participants, with one California resident expressing that the loss of the $30 stipend would impact their ability to afford groceries as a single parent. The program has been praised for not only providing financial assistance for internet bills but also for saving money in other sectors, such as healthcare and veterans services.
The Federal Communications Commission launched the Affordable Connectivity Program on Dec. 31, 2021, providing financial assistance to eligible households to access the internet. Proponents argue that the program has significant economic benefits, with a study estimating that every $1 spent on the program results in a $2 economic benefit. Subscribers are projected to gain $16.23 billion in annual benefits from the subsidy, which costs $8.45 billion per year. The program has also enabled companies to expand service to rural areas due to the assurance of financial assistance for low-income customers in those regions.
