Millions will have higher internet, phone bills this month: Here’s why

(NEXSTAR) — Over the last few years, millions of Americans have been receiving discounted internet and phone service as part of the FCC’s Affordable Connectivity Program. That’s set to change as the program runs out of funding and bills aimed at securing more money have stalled in Congress.

Since 2021, eligible households (those with an income below 200% of the poverty line, or those in which someone was receiving a government benefit like SNAP, Medicaid, or WIC) have been able to get cheaper internet or phone service through the Affordable Connectivity Program, or ACP.

According to the FCC, more than 23 million households were enrolled in the program at one point, receiving $30 subsidies on their internet or phone bills — or $75, if they resided on tribal lands. In May, the maximum subsidy dropped to $14 and $35 on tribal lands.

As of June, funding for the program has run dry. That means millions of customers will see their bills return to pre-program totals or higher, if the provider raised rates during the pandemic. Some providers will continue to offer discounted services — Verizon and AT&T recently outlined those affordable plans to Nexstar.

“It is regrettable that the Federal Communications Commission must bring to a close the most successful broadband affordability program in our Nation’s history,” FCC Chair Jessica Rosenworcel wrote in a letter Thursday to Ohio Republican Congressman Dave Joyce, who heads the House Appropriations Subcommittee on Financial Services and General Government. 

During the ACP’s winddown period, there were hopes that Congress would take action to provide more funding for the program.

In January, Sen. Peter Welch (D-Vt.) and Rep. Yvette Clarke (D-NY) introduced companion bills that would provide additional funding for ACP. Both bills, as well as a similar bill introduced by Sen. John Fetterman (D-Pa.) have, however, stalled.

“It is not too late to save the Nation’s largest broadband affordability program,” Rosenworcel said in a statement Friday. “The ACP was too impactful and has too much support from both parties on Capitol Hill and across the country to just move on and say it was nice while it lasted. Bipartisan efforts to provide more funding for the ACP are ongoing, and the FCC is ready to resume the program as soon as any additional funding is provided.”

President Joe Biden also called on Congress to extend funding for the ACP as the White House announced commitments from 14 companies to offer affordable internet to low-income households through 2024.

As of Friday, those companies that said they will continue to offer their $30-or-less plans to people who previously benefited from the federal subsidy include AT&T, Comcast, Cox, Spectrum, Verizon, Allo Fiber, altafiber (and Hawaiian Telcom), Astound Broadband, IdeaTek, Mediacom, MLGC, Optimum, Starry and Vermont Telephone Company, according to The Hill.

It’s worth noting that eligibility for those plans may be more restrictive than those for the ACP.

The FCC has recommended customers reach out to their service providers for alternative low-cost plans.