What Is Affordable Connectivity Program?
The Affordable Connectivity Program (ACP) was a government assistance program in the United States designed to help eligible low-income households afford broadband internet service. Established as a public policy initiative, the ACP aimed to bridge the digital divide by providing monthly subsidies for internet access and a one-time discount for purchasing connected devices. The program was administered by the Universal Service Administrative Company (USAC) under the oversight of the Federal Communications Commission (FCC).
History and Origin
The Affordable Connectivity Program evolved from the temporary Emergency Broadband Benefit (EBB) program, which was created in December 2020 through the Consolidated Appropriations Act, 2021, to help households afford internet during the COVID-19 pandemic32, 33. Recognizing the critical need for sustained internet access, Congress established the ACP as a longer-term initiative with a $14.2 billion allocation through the Infrastructure Investment and Jobs Act, signed into law on November 15, 202130, 31. The FCC officially launched the Affordable Connectivity Program on December 31, 2021, transitioning it from the EBB with some changes, including a reduced monthly benefit for most households and new eligibility pathways28, 29. The ACP's funding, however, was finite and, due to a lack of additional appropriations from Congress, the program officially ended on June 1, 202427.
Key Takeaways
- The Affordable Connectivity Program was a federal initiative providing subsidies for internet service and connected devices to eligible low-income households.
- It replaced the temporary Emergency Broadband Benefit program, expanding and extending efforts to close the digital divide.
- Eligible households could receive up to a $30 monthly discount on internet service (up to $75 for households on qualifying Tribal lands) and a one-time discount of up to $100 for a laptop, desktop computer, or tablet25, 26.
- The program significantly increased access to online education, work, healthcare, and government services for millions of Americans24.
- The Affordable Connectivity Program ceased accepting new enrollments on February 7, 2024, and officially ended on June 1, 2024, due to a lack of additional congressional funding22, 23.
Interpreting the Affordable Connectivity Program
The Affordable Connectivity Program was designed to ensure that more Americans could access essential telecommunications services, viewing internet access not as a luxury but as a necessity for modern life. Its impact was measured by the number of households enrolled and the reported uses of the subsidized internet, such as for remote work, virtual schooling, and telehealth services21. The program's success indicated a significant demand for affordable broadband and underscored the persistent challenge of internet affordability for many families. The program's termination means that millions of households will now face the full cost of internet service, which could impact their ability to maintain connectivity.
Hypothetical Example
Consider the Garcia family, a household of four with an income below 200% of the federal poverty guidelines. Before the Affordable Connectivity Program, they struggled to afford a reliable internet connection, often relying on public Wi-Fi or mobile hotspots for schoolwork and job searches.
Upon learning about the Affordable Connectivity Program, Mrs. Garcia applied through the National Verifier, providing documentation of their income. Once approved, they selected an Internet Service Provider (ISP) that participated in the ACP. Their monthly internet bill, which was typically $55, was reduced by $30 due to the ACP subsidy, bringing their out-of-pocket cost down to $25. Additionally, they were able to purchase a new tablet for their children's online learning for a significantly reduced price, thanks to the one-time device discount. This direct financial assistance provided by the Affordable Connectivity Program allowed the Garcia family to maintain consistent, high-speed internet access, improving their children's educational opportunities and Mrs. Garcia's ability to seek and apply for better employment.
Practical Applications
The Affordable Connectivity Program had direct implications across several sectors, primarily focused on bridging access gaps and fostering economic opportunity.
- Digital Inclusion: The program directly addressed the digital divide by making internet access more affordable for millions, fostering greater digital equity for underserved communities20.
- Education: By providing subsidized internet, the ACP enabled students in participating households to engage in online learning, access educational resources, and complete homework, reducing disparities in educational attainment19.
- Healthcare: The program supported telehealth services, allowing individuals to attend virtual medical appointments and access health information, which is particularly crucial in rural or underserved areas18.
- Employment: Access to affordable internet facilitated job searching, online applications, remote work opportunities, and skill development, contributing to workforce participation and overall economic growth.
- Government Services: Individuals could more easily access essential government services, apply for benefits, and stay informed about public resources, improving civic engagement and access to support systems.
- Consumer Protection: The FCC provided guidance and warnings related to the program, emphasizing the importance of verifying websites and preventing misinformation, especially as the program wound down17.
Limitations and Criticisms
Despite its widespread impact, the Affordable Connectivity Program faced certain limitations and criticisms. A primary concern was its finite funding, which ultimately led to its cessation. This reliance on one-time congressional appropriations created uncertainty for enrolled households and participating Internet Service Providers.
Critics also raised questions about the program's long-term sustainability and whether a direct subsidy was the most efficient approach to addressing broadband affordability. Some argued that while the program helped connect many, it did not fundamentally alter the underlying market dynamics that make internet access expensive for some16. There were also discussions regarding administrative burdens for both applicants and providers, and concerns about potential fraud, although mechanisms like the National Verifier were put in place to mitigate these risks. The program's termination highlighted the ongoing challenge of ensuring universal service and affordable connectivity, especially in the face of rising inflation and economic pressures15. The end of the program raised fears among participants about losing essential access to jobs, healthcare, and education, underscoring the potential for a significant widening of the digital divide14.
Affordable Connectivity Program vs. Lifeline Program
The Affordable Connectivity Program (ACP) and the Lifeline Program are both federal initiatives aimed at making telecommunications services more affordable for low-income consumers, but they differ in scope, funding, and benefits. The Lifeline Program, established in 1985, is a long-standing program primarily focused on providing discounts on phone service, though it now also includes broadband. It is funded through the Universal Service Fund (USF), which collects contributions from telecommunications carriers. The Lifeline discount is typically up to $9.25 per month for eligible households, with higher discounts for those on Tribal lands13.
In contrast, the Affordable Connectivity Program was a temporary, larger-scale program funded by a direct congressional appropriation. It offered a significantly higher monthly discount of up to $30 (or $75 on Tribal lands) specifically for internet service, along with a one-time device discount11, 12. While eligibility criteria for both programs overlapped—allowing many Lifeline participants to qualify for the ACP—the ACP provided a more substantial benefit designed specifically to address the contemporary need for affordable high-speed internet. Lifeline continues to operate, while the Affordable Connectivity Program officially ended on June 1, 2024, due to a lack of additional funding.
Who was eligible for the Affordable Connectivity Program?
Eligibility for the Affordable Connectivity Program typically included households with incomes at or below 200% of federal poverty guidelines, or those participating in certain government assistance programs such as SNAP, Medicaid, Federal Public Housing Assistance, SSI, WIC, or the Lifeline Program. Households with a member approved for the free and reduced-price school lunch program or who received a Federal Pell Grant were also eligible.
#8## What benefits did the Affordable Connectivity Program provide?
The Affordable Connectivity Program provided a monthly discount of up to $30 on broadband internet service for eligible households, with a higher discount of up to $75 per month for households on qualifying Tribal lands. Additionally, it offered a one-time discount of up to $100 for the purchase of a laptop, desktop computer, or tablet from participating providers, requiring a co-payment of more than $10 and less than $50.
#6, 7## Why did the Affordable Connectivity Program end?
The Affordable Connectivity Program ended because it was funded by a one-time appropriation from Congress, and despite calls for an extension, Congress did not provide additional funding. As4, 5 a result, the program stopped accepting new applications on February 7, 2024, and officially ceased providing benefits on June 1, 2024.
#3## How many households were impacted by the Affordable Connectivity Program?
At its peak, the Affordable Connectivity Program served over 23 million households across the United States, representing approximately one in six American households. Th2e termination of the program means these households will no longer receive the monthly internet discount, potentially leading to a significant number losing their internet connection.1