When the Affordable Connectivity Program ended last May, its users were faced with a painful choice: cancel their internet service entirely or find $30 elsewhere in their monthly budget.
In a new survey from the National Lifeline Association, nearly 40% of people enrolled in the ACP said they had to reduce spending on food to afford their new internet bill. 41% said they had to cut back on clothing, heat and doctor’s visits. Another 18% said their kids had difficulty completing homework assignments.
The survey sheds light on how the 23 million Americans who used the ACP have struggled to keep the internet on without the $30 monthly subsidy. The ACP was borne out of the COVID-19 pandemic when Congress dedicated $14.2 billion to helping low-income households pay for internet.
“I’m struggling to pay for internet every month,” said one ACP enrollee. “I have to choose between my internet and my medicine, and I have an 11-year-old who needs the internet to complete homework. I desperately need the ACP program.”
By the time the Federal Communications Commission ended ACP enrollments, more than half of all eligible households had enrolled. The ACP accepted households at or below 200% of the federal poverty guidelines, or $60,000 in annual income for a family of four last year.
However, according to this new survey, most ACP enrollees had incomes well below that threshold, with 30% of respondents saying they have no income and 28% saying it’s less than $10,000 a year. Nearly one in three respondents said they currently live in temporary housing or have no housing at all.
“I have read thousands of heartbreaking testimonies from consumers since ACP funding ran out,” David B. Dorwart, chairman of the NaLA Board, said in a statement. “Lawmakers must refund the ACP and fix the Universal Service Fund’s Lifeline program to ensure all American households have affordable access to essential communications.”
Several ACP renewals have been proposed since the FCC announced it was running out of funds last year, but none have gained traction. As a senator from Ohio, Vice President JD Vance was a cosponsor on an ACP extension bill that would have injected $7 billion for the program, but the bill was never brought to a vote.
The ACP paid for itself
Another report released this week found that the economic benefits gained from the ACP “far outweigh its costs.” The economic analysis from The Brattle Group, a Boston-based research firm, found that the healthcare savings alone amounted to more than quadruple the ACP’s annual budget.
“The ACP played a critical role in addressing broadband affordability in the United States over the past several years, and our analysis found that the annual return on investment for the ACP exceeds the expense of the program,” said Dr. Paroma Sanyal, Principal at The Brattle Group and one of the coauthors of the report.
The authors estimated that the ACP generated $28.9 to $29.5 billion in annual healthcare cost savings. This was primarily due to the savings from telehealth over in-person doctors’ visits. The analysis says switching one in-person visit to a virtual one could save enough money to fund 3.5 years of ACP support for one Medicaid recipient.
There were also economic impacts on ACP users’ earning potential. The report estimates that reinstating the ACP would improve students’ academic performance and benefit their future earnings by over $3.7 billion annually, starting about 10 years after high school. The authors expected another $2.1 to $4.3 billion in annual wage gains from expanded labor force participation if the program were reinstated.
What other low-income internet options are available?
There’s no single option that’s stepped up to replace the Affordable Connectivity Program since it ended. Still, there are several resources available that can help low-income families pay for internet. Here’s where to start:
- Lifeline: This program has been around since 1985 and provides $9.25 per month to help pay for phone or internet services. The annual income requirements are stingier than the ACP’s — 135% of federal poverty guidelines, or $43,402 for a family of four. You can also qualify if you participate in Federal Public Housing Assistance, Medicaid, Supplemental Nutrition Assistance Program, Supplemental Security Income, Tribal-specific programs or the Veterans Pension and Survivors Benefit Programs.
- State and local resources: Many states and cities started offering their own low-income programs after the ACP ended. The best way to find local programs is by going to Google and searching for “[location] internet resources.” You can also use CNET’s guide to low-income internet options in all 50 states.
- Low-income plans from internet providers: Most of the major internet providers are now offering their own discounted plans for low-income households. The National Digital Inclusion Alliance, a nonprofit dedicated to closing the digital divide, developed a scoring system called Grading Internet for Good based on factors like cost, transparency and plan performance. You can see these ratings in the table below, along with some basic information about each plan.
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