Benefits of Affordable Connectivity Program Ending


Posted On: April 11, 2024

Chris Shirley
marketing@navigatehousing.com

Millions of low-income families across America will soon lose the benefits of the Affordable Connectivity Program. The Affordable Connectivity Program (ACP) started during the COVID-19 Pandemic offering broadband discounts to more than 23 million households.

Broadband Benefits Ending

Benefits of ACP ending

As of now, Congress hasn’t renewed funding for the ACP program and funds are drying up. April marks the last month the program will offer full benefits. The FCC says by May only 46% of the usual assistance will be available. Without action from lawmakers, the program will shut down. Now, these families face steep increases in broadband internet service. Families who enrolled in the ACP receive $30 discount on these services. Households on tribal lands receive $75.

Bipartisan efforts are underway to salvage the program. A Senate bill proposing an additional $7 billion for the ACP has recently gained traction, acquiring sponsors from both sides of the aisle, including Ohio Democratic Senator Sherrod Brown and Kansas Republican Senator Roger Marshall. The companion bill in the House has garnered backing from over half its members, indicating broad support.

Amidst these legislative efforts, the FCC is also calling on internet service providers to bridge the gap voluntarily. The agency suggests that providers could offer their own discounts, switch consumers to cost-effective plans, or employ other strategies to prevent service disruptions.

New Requirements for Internet Service Providers

Benefits of ACP are uncertain for some, However the FCC says all American households will see a change from internet service providers. “Nutrition label” style disclosures are now required for broadband plans, according to the agency. These labels will disclose prices, speeds, data allowances, bundle and discount prices, privacy policies and introductory rate details. Information on rental fees for any equipment, such as modems or routers, must also be disclosed. The chair of the FCC says Americans will benefit from consistent transparency.

“These ‘nutrition label’ disclosures are designed to make it simpler for consumers to know what they are getting, hold providers to their promises, and benefit from greater competition—which means better service and prices for everyone.”

Jessica Rosenworcel, FCC Chairwoman

Providers will more than 100,000 customers must comply with the new requirement immediately. After October 10,2024 smaller internet service providers will be required to add the broadband labels as well.

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