The FCC terminates the affordable internet initiative due to insufficient financial resources.
The United States government has declared the final termination of a well-liked federal program on Friday, which has helped millions of households to afford internet service. This program faced a sudden halt due to the negligence of Republicans in Congress, despite calls for more funding from consumer advocates and Democratic lawmakers earlier this spring.
According to CNN, the abolishment of this program threatens to plunge almost 60 million Americans into financial chaos.
The Federal Communications Commission (FCC) has officially ended the Affordable Connectivity Program (ACP) on June 1, which had been implemented in roughly 20% of households in the country and on tribal lands. The ACP had offered eligible low-income individuals a monthly credit deduction from their internet expenses, worth up to $30 per month for residential areas and up to $75 per month for homes on tribal lands. This pandemic-era program was admired by members of both political parties and had benefited seniors, veterans, and urban and rural citizens alike.
In May, participants received only partial benefits before the impending cessation of the ACP.
FCC Chairwoman Jessica Rosenworcel stated in a press release, "The Affordable Connectivity Program has been a vital lifeline for millions of Americans, but now the program is unceremoniously being axed without additional funding from Congress." She added, "The FCC is eager to provide any assistance to Congress for extending the ACP in the future and stands ready to resume the program again if additional funding is authorized."
Before the deadline, several US lawmakers suggested bipartisan legislation to prolong the ACP. However, these bills faced little progress due to the apparent uninterest of Republican leaders in engaging with this matter. Both President Joe Biden and Democratic legislators have blamed GOP leadership for the program's conclusion.
A representative from House Speaker Mike Johnson hasn't yet responded to a request for a response on the issue.
On Friday, President Biden reiterated his appeals for Congress to pass a bill extending the ACP. Additionally, he released a statement about some internet providers' commitments to offer their own affordable internet plans for $30 or less to eligible ACP households. The list of providers includes AT&T, Comcast, Cox, Charter's Spectrum, and Verizon, among others.
These providers will keep providing their low-cost broadband plans to qualifying ACP families, and they are predicted to cover approximately 10 million of the 23 million homes that rely on the ACP.
The ACP was initially funded through a one-time budget of $14 billion by Congress. Biden has sought $6 billion to maintain the program, while a bipartisan proposal proposed allotting $7 billion more for its continuation.
Kathryn de Wit, the director of the Pew Charitable Trust's broadband access initiative, expressed her disappointment regarding the lack of a congressional solution before the stipulated end.
"Without any timely intervention, participating households will have to deal with an immediate increase in their internet bills," remarked de Wit. "We understand that cost is a primary obstacle for linking low-income families to the internet, so without the ACP, expect most participating households to downgrade or abandon their internet plans."
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The FCC's decision to end the Affordable Connectivity Program has raised concerns within the tech industry about the potential impact on digital businesses reliant on affordable internet access.
Given the widespread use of the ACP among tech companies, the absence of this program could lead to a shift in business strategies, as companies may need to adapt to cater to customers facing increased internet costs.
