Tue Sep 10 17:10:18 UTC 2024: ## Internet Subsidy Program Faces Uncertain Future as ISPs Scale Back Efforts
**WASHINGTON, D.C.** – The Affordable Connectivity Program (ACP), a federal internet subsidy that helped millions of low-income households afford broadband, has expired, leaving many families in limbo. While ISPs like Charter, Verizon, and Comcast initially lobbied for the program’s renewal, they have since scaled back their efforts, citing uncertainty over funding and the upcoming election.
The $14.2 billion program, which provided discounts of up to $30 per month for eligible households, served roughly 23 million families, two-thirds of whom had unreliable or no internet access before enrolling. The program’s expiration has resulted in some customer losses for broadband providers, although the impact has been less severe than anticipated.
Despite the potential impact on low-income families, the political landscape surrounding the ACP is uncertain. While both Democrats and Republicans have proposed bills to temporarily relaunch the program, the upcoming election and other priorities have overshadowed its revival.
“This is going to be a really close election so maybe they want to use floor time for judicial nominations,” said Gigi Sohn, a former FCC commissioner, highlighting the political challenges.
Industry players are increasingly disillusioned with the temporary model and are now pushing for permanent solutions, such as strengthening the Universal Service Fund. However, this approach faces its own political obstacles, especially after a federal court ruled the USF unconstitutional.
While lawmakers assure they will continue to advocate for the ACP’s return, the lack of industry support casts a shadow over its future. “Industry is one voice in this because they are the structure providing this service,” said Rep. Nikki Budzinski. “It’s important that they be at the table.”
The ACP’s expiration has also affected companies that invested heavily in enrolling customers in the program. Charter, which received over $900 million from the program, reported a significant loss of internet customers in the second quarter.
While the initial impact of the ACP’s lapse appears to be milder than expected, analysts warn that the worst may be yet to come, with potential increases in bad debt and unpaid disconnects anticipated in the third quarter.
The future of the ACP remains uncertain. With the upcoming election and other pressing issues vying for congressional attention, the program’s revival hangs in the balance.
First Piper 