Without more money, the FCC will have to end its Affordable Connectivity Program (ACP), Chairwoman Jessica Rosenworcel says. In a letter to Senate and House Appropriations and Commerce Committee leaders this week, Rosenworcel says, “more funding is urgently needed to keep the ACP in place, so that it can continue to support the households that rely on it and reach others that may be on the wrong side of the digital divide. In light of demand, the remaining funding we have is insufficient to fund the ACP to consumers beyond April 2024.”
Nearly 23 million households rely on ACP, the largest broadband affordability program in the nation’s history, according to Rosenworcel. In 2021, Congress passed the bipartisan Infrastructure Law and appropriated $14.2 billion dollars for the ACP.
The Administration asked for an additional $6 billion to keep the ACP going. Without the extra funding, it’s projected to run out of money in May.
“This also means that roughly 1,700 internet service providers will be affected by the termination of the ACP and may cut off service to households no longer supported by the program,” stressed Rosenworcel. She reiterated that NTIA Administrator Alan Davidson recently told Congress that losing ACP “would undermine the historic $42.5 billion” BEAD program. Through BEAD, the ACP supports a stable customer base to help incentivize deployment in rural areas, Rosenworcel explained.
Due to the lack of additional funding, and the fact that the projected end date is less than four months away, the Commission expects to begin taking steps this week to start winddown procedures, according to Rosenworcel. The agency will offer ACP ISPs guidance on the timing and requirements for notifying participating households about the projected end of the program. “To avoid consumer confusion and minimize the risk of consumer bill shock, providers must give consumers specific, frequent notice about the projected end of the program and their ACP discount, and how that will impact their internet bill,” she notes.
The FCC will then announce the date by which it will end enrollment and the date by which ACP will conclude. Ending enrollments means that more than 240 outreach grant awardees will need to wind down their grant-funded ACP outreach.
Under the current program, eligible low-income households can receive a discount of up to $30 per month toward internet service and up to $75 per month for eligible households on qualifying Tribal lands. Rosenworcel says she’s still hopeful Congress will provide the needed funding.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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