The Affordable Connectivity Program (ACP), which supplements funding for internet service for 23 million households in need, is winding down. Enrollment for the program froze on February 8 and the remaining funds are expected to run out in May—unless Congress acts to provide additional funding. (Take Action here!)
Benefits the ACP Provides
Since 2021, the program has provided a one-time discount of up to $100 to help people buy computers and up to $30 toward monthly internet service (up to $75 per month on qualifying Tribal lands).
Losing the ACP benefit would disrupt internet service for 77% of recipients, causing them to change their plan or drop internet service, according to a Federal Communications Commission (FCC) survey conducted in December 2023.
The survey, which had over 5,300 respondents, also gave the following insights on the ACP’s importance:
- About half of survey respondents either did not have internet service or relied solely on mobile internet service before receiving their ACP benefit (47% total and 53% rural).
- Over two-thirds of survey respondents (68%) had inconsistent or no internet service prior to ACP, and 80% of respondents in this group cited affordability as the reason.
- ACP subscribers reported that they use their ACP internet service to schedule or attend healthcare appointments (72%), apply for jobs or complete work (48%), and do schoolwork (75% for ACP subscribers 18-24 years old).
Legislation to Extend Funding Is Pending
Bipartisan legislation has been introduced to extend funding, the Affordable Connectivity Program Extension Act of 2024 (H.R. 6929 / S. 3565). This legislation would provide an additional $7 billion to continue the program. The program was originally funded at $14.2 billion.
In addition, Congress must include funding for the ACP program in fiscal year 2025, as requested by the President’s FY25 budget.
How to Help People Who Receive ACP Funds
For now, households that stay enrolled in, and eligible for, the program will receive their discounts until the funds run out. Their internet providers will send notices about the end of the program and the new service costs. Households may change their service or discontinue their service after the ACP ends and may switch plans without penalty.
If the ACP ends, subscribers may consider applying for the Lifeline program, which provides a smaller amount of monthly funding for phone and/or internet service. Lifeline provides up to $9.25 per month for this service, with up to $34.25 available for people who live on qualifying Tribal lands. People may qualify for Lifeline if their household income is up to 135% of the Federal Poverty Guidelines or if someone in the household participates in certain federal assistance programs like SNAP and Medicaid. See Lifeline FAQs.
However, the enrollment process for Lifeline is separate from the ACP, and households are likely to experience disruption in internet subsidy, as well as a nearly two-thirds reduction in support, as they transition between programs.
The FCC has provided information about the wind-down that can be helpful to older adults and others receiving the ACP benefit, including an ACP Wind-Down Fact Sheet and Frequently Asked Questions and Answers.
LeadingAge will continue to work with HUD, the FCC, and other policy-makers to improve access to affordable internet for older adults with low incomes.