Internet service providers such as Charter, Verizon (Verizon), and Comcast (Comcast) are reducing their support for extending the Affordable Connectivity Program (ACP).
The ACP Program, a federal internet subsidy program for low-income families to help low-income households pay for broadband, has now expired.
The plan is worth $14.2 billion and aims to provide up to $30 a month in allowances for some eligible families and up to $75 a month for families on eligible tribal land. But it officially ended in June of this year after Congress decided not to invest more money into the project.
Democrats and Republicans in the US Congress have now proposed a bill to extend the ACP plan, at least temporarily.
Since the ACP program expired in June of this year, telecom companies involved in the project have experienced loss of customers. These companies generally expect a bigger shock in the upcoming third quarter, making them wary of supporting another temporary subsidy program that could expire again.
According to a December survey by the Federal Communications Commission, the ACP program serves approximately 23 million households, and two-thirds of these households had inconsistent or zero internet access before registration. In February of this year, the ACP stopped accepting new applications as funding for the program was reduced.