FCC to cut monthly broadband benefits because of funding shortfall

Some low-income families in the U.S. could see more expensive broadband bills starting next month when the Federal Communications Commission (FCC) makes cuts to its monthly broadband benefits, the agency announced Tuesday.

The agency said the monthly benefits cuts are due to Congress not having approved further funding for the Affordable Connectivity Program. The program, which stopped accepting new applications in February, is aimed at helping low-income households afford the broadband needed for work, school and more.

In May, the maximum subsidies for many in the program will fall to $14, less than half of the current $30 some currently receive for their broadband payments. FCC Chair Jessica Rosenworcel, in a letter last week to Rep. Steve Womack (R-Ark.), a spending cardinal, warned there will be no further ACP benefit after May should Congress not continue further funding.

The Hill reached out to the FCC for comment.

For residents on tribal lands, the maximum monthly benefit will drop to $35, down from $75. Families who receive credit for certain devices will see the maximum amount fall to $47, from the current $100.

The FCC said it is encouraging providers to “keep consumers connected” and noted providers can but are not obligated to offer more discounts to households that are part of the program. It remains unclear exactly how providers will approach the situation starting next month.

More than 20 million households are enrolled in the program, the FCC said.

“Today, more than 23 million households nationwide count on [the Affordable Connectivity Program] to get online and stay online, including vulnerable seniors, veterans, school-aged children, and residents of rural and Tribal communities,” Rosenworcel said in a letter last week. “Absent additional funding from Congress, the program will close.”

She urged lawmakers to pass the bicameral Affordable Connectivity Program Extension Act, which would dish out an additional $7 billion for the program.

“To fully participate in the digital age economy, every household needs access to broadband … We have come too far to allow this successful effort to promote internet access for all to end,” she said.

This story was updated at 1:05 p.m. on April 10.

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