Up To 25 Million Could Lose Internet Access as Affordable Connectivity Program Nears Funding End

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The Federal Communications Commission (FCC) formally notified Congress this week that the Affordable Connectivity Program (ACP) will exhaust its $14 billion budget by the end of April if Congress doesn’t act.

This critical shortfall could result in up to 25 million American households losing access to vital broadband services. In response, a bipartisan group of legislators has introduced the Affordable Connectivity Program Extension Act to address the crisis.

In January, Sen. Peter Welch (D-Vt.), along with Senators JD Vance (R-Ohio), Jacky Rosen (D-Nev.), and Kevin Cramer (R-N.D.), Rep. Yvette Clarke (D-NY), and Rep. Brian Fitzpatrick (R-PA), led their colleagues in the bicameral, bipartisan introduction of the Affordable Connectivity Program Extension Act.

Senators Welch, Vance, Rosen, and Cramer are leading the introduction of the bill in the Senate. Representatives Clarke and Fitzpatrick are leading the bill in the House of Representatives and are joined by original cosponsors Reps. Michael Lawler (R-NY), Norma Torres (D-CA), Anthony D’Esposito (R-NY), Debbie Dingell (D-MI), Darren Soto (D-FL), and Marc Molinaro (R-NY).

“Without congressional intervention, the ACP’s $14 billion budget will be exhausted by the end of April amid rising enrollment and strong demand for benefits,” said Sen. Welch. “By that time, the loss of funding could disrupt internet access to an estimated 25 million homes, the FCC has projected, or the equivalent of 64 million people, according to U.S. Census Bureau household estimates.”

The Program’s Far-Reaching Impact

The ACP, a key component of the 2021 Bipartisan Infrastructure Law, provides eligible low-income households with a monthly $30 subsidy toward the cost of broadband internet service and up to $75 monthly for households on Tribal lands. Since its inception, the program has connected over 22 million households across the United States.

In a recent analysis of household data across the United States, California leads with the highest number of total households, reaching 2,945,281, followed by New York (1,792,187), Texas (1,718,552), Florida (1,707,857), and Ohio (1,157,054), illustrating a significant concentration of the enrolled just in these states.

On the other end of the spectrum, the states with the fewest households enrolled include Wyoming (21,736), Alaska (24,784), South Dakota (24,194), Vermont (25,923), and North Dakota (17,742), highlighting areas with lower population densities.

As of the date of the enrollment freeze, there are 23,269,550 households enrolled in the program, of which 22,940,091 were non-Tribal and 329,459 were Tribal, according to data from the Universal Service Administrative Co., an independent not-for-profit agency that administers certain programs such as the ACP for the FCC.

In her letter to Congress, FCC Chairwoman Jessica Rosenworcel urged immediate action before the program runs out of funds and participating households no longer receive the full ACP benefit.

She said in the letter that over the past three years, Rosenworcel has traveled the country, meeting with ACP recipients and digital navigators to understand first-hand how the program is making a difference.

“Many of these households have contacted the Commission to express their disappointment and frustration that they can no longer sign up for the program,” she wrote. “Others have contacted the agency to express concern about the impending end of the program, noting its impact on older adults, families with school children, and military families at risk of losing their internet service without the ACP benefit. They worry that without ACP support they will lose access to employment, education, health care, and more.”

In her letter, she provided some key statistics on the program. These include that nearly half of participating households are military families, four million seniors and 10 million Americans over 50 rely on the ACP, one in four households enrolled are African American or Latino, and the program provides vital support to 320,000 households on Tribal lands.

“The internet is no longer optional – it’s essential,” said Jenna Leventoff, Senior Policy Counsel at the American Civil Liberties Union. “Without broadband, our local communities cannot access opportunities in education, and employment, nor speak out online and exercise their First Amendment rights. Households who struggle to afford broadband shouldn’t have to sacrifice other necessities to stay connected. The Affordable Connectivity Program has proved to be so necessary that it is facing a funding cliff. But, the Affordable Connectivity Program Extension Act could stop families from falling off.”

The Looming Crisis

Without congressional intervention, this crisis could have a far-reaching impact on low-income communities, jeopardizing access to education, healthcare, employment opportunities, and essential digital services.

The Affordable Connectivity Program Extension Act enjoys widespread support, with over 400 organizations and leaders from various sectors backing its passage. These include AARP, the American Civil Liberties Union (ACLU), AT&T, Charter, Comcast, the Communications Workers of America, Cox Communications, CTIA–The Wireless Association, and numerous others.

“The ACP is the rare broadband policy that is supported by everyone in the ecosystem – industry, public interest and digital equity advocates, local, state and federal officials, Republicans and Democrats,“ said Gigi Sohn, Executive Director of the American Association for Public Broadband. ”Yet the program is at serious risk of ending this April unless Congress swiftly acts to extend it. Passage of the ACP Extension Act will help keep American households connected while giving Congress and the FCC time to consider how best to make the ACP a permanent program.”

Underscoring the urgency, the White House also urged Congressional action on the eve of the pause in accepting applications for the program.

“In the 21st century, affordable, reliable high-speed internet is critical in order to access education, healthcare, and work, engage in precision agriculture, and keep in touch with loved ones,” the White House said in a statement. “Still, too many are left without high-speed internet because they lack the infrastructure or are inhibited by high costs.”