Internet price hikes for low-income Americans could begin in May as federal funds run dry, FCC says

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The US government says that next month it can only pay about half of what low-income Americans are eligible for under a popular federal benefits program that is running out of money — a crisis that threatens to plunge millions of households into economic distress within weeks.

The announcement by the Federal Communications Commission reflects the first concrete impacts of Congress’ failure to extend the Affordable Connectivity Program, a pandemic-era benefit that provides monthly discounts on internet service to more than 23 million US households, including seniors, veterans and schoolchildren. Due to lack of funds, April will be the final month the ACP can provide full benefits, the FCC said Tuesday.

The Biden administration has blamed congressional Republicans for standing in the way of legislation that could renew the ACP and ensure Americans aren’t hit by higher bills. House Speaker Mike Johnson has declined to say whether he backs that legislation, while Senate Majority Leader Chuck Schumer has said he supports passage of additional ACP funding. The ACP is popular with Americans across the ideological spectrum, surveys show.

 

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