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The looming change could mean a price hike on low-income families in the Affordable Connectivity Program, if the reduced federal aid isn’t enough to cover the full cost of their service. But the exact effects ultimately depend on internet providers, which can offer their own discounts — or simply elect to stop accepting federal subsidies entirely in May.
Companies including AT&T, Charter, Comcast and Verizon have not fully detailed how they will handle the matter if the cuts kick in — or if they plan to provide other financial relief to low-income families that could see rising bills. None of the four companies immediately responded to requests for comment on Tuesday.
In a blog post last week, AT&T pointed subscribers toward its existing low-cost option, which costs $30 per month. The company did not say if it would accept partial federal subsidies in May.
“We encourage providers to take efforts to keep consumers connected at this crucial time,” the FCC said in a public notice.
The FCC notice arrived a day after the White House renewed its calls for Congress to approve new emergency funding for the Affordable Connectivity Program, which lawmakers enacted as part of a sprawling bipartisan law to improve the nation’s infrastructure in 2021. The idea originated in the coronavirus pandemic, as Democrats and Republicans looked to ensure that cash-strapped families — many of whom were thrust out of a job — could continue to work, learn and communicate online.
Lawmakers this year have had multiple opportunities to address the funding shortfall, but they have repeatedly failed to act, even as part of a deal to fund the government they adopted last month. Their next opportunity may arrive in the coming weeks, when Congress weighs emergency spending legislation that would provision new aid to Ukraine and reconstruction money for the collapsed Key Bridge in Baltimore.
“Without congressional action to extend funding for the program, those 23 million households and families will lose that benefit and will see internet costs go up or lose internet access,” said Stephen Benjamin, a senior adviser to the president, on a call with reporters in early April.
Anticipating a shortfall, the FCC began taking steps to wind down the Affordable Connectivity Program earlier this year. It halted new sign-ups in February, and ordered internet providers to begin communicating with customers about the potential end of the program in March.
Previewing the cuts coming next month, the FCC on Tuesday said most Americans would receive $14 per month, down from the $30 they had received. For Americans who live on tribal lands, the maximum monthly benefit would fall to $35 per month beginning in May, down from $75. The initiative also allows families to receive a credit for eligible devices, which would be reduced to $47 from the current $100.
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