The Affordable Connectivity Program, which provides financial assistance to 23 million American households for their monthly internet bills, is set to end at the end of the month. Efforts to save the program through bipartisan legislation have been met with criticism from some lawmakers, including Sen. Ted Cruz, who called it a “massive welfare program.” However, a bill has been introduced in the House and Senate to expand the program, with the support of 206 House Democrats and 24 Republicans.
Congress initially allocated $14.2 billion to the Affordable Connectivity Program in December 2021, but the funding is now running out. The bill introduced to save the program would allocate an additional $7 billion to extend it through the end of the year. Before receiving the federal internet subsidy, almost 22% of program participants had no personal internet service, and another 25% had only mobile internet, according to a survey by the Federal Communications Commission.
The Biden administration has called for the extension of the Affordable Connectivity Program, but it is unclear when or if Congress will take up votes to extend the program. Many program participants have expressed concern about losing access to home internet if the program ends. The program has been credited with saving millions of dollars in other sectors, including healthcare and veterans services, as well as facilitating the expansion of internet service to rural areas.
A study by the Benton Institute for Broadband & Society found that for every $1 spent on the Affordable Connectivity Program, $2 in economic benefit is gained. Subscribers are estimated to gain $16.23 billion in annual benefits from the subsidy, which costs $8.45 billion per year. The program has been particularly important for low-income households, veterans, and older adults, with more than 40% of eligible households headed by someone over the age of 50.
Despite the benefits of the program, there are concerns about its long-term sustainability. The bill introduced to extend the program through the end of the year would allow Congress to “work out the long-term changes that are needed for sustainable access,” according to Sen. Peter Welch. Many program participants have said they would need to make changes to their broadband plan if the subsidy is discontinued, with some even saying they would have to drop internet service altogether. The end of the program would have significant consequences for millions of Americans who rely on it for affordable access to the internet.
