End of Subsidy Leads to Surge in Internet Bills for Low-Income Families in New South Wales

In the month of April, it was the last month of the federal program “Affordable Connectivity Program” (ACP) in New Jersey, which provides internet discounts for low-income families. With the conclusion of this program, the internet bills for hundreds of thousands of residents in New Jersey are expected to skyrocket in May.

April marked the final month of full funding for the ACP, which was established under the Bipartisan Infrastructure Law of 2021. The program offers a maximum monthly discount of $30 on internet bills for eligible households and up to $75 for families on Native American tribal lands.

According to data from the Universal Service Administrative Co., an independent non-profit organization overseen by the Federal Communications Commission (FCC), as of February, nearly 334,000 households in New Jersey relied on the ACP to pay for high-speed internet services.

Nationwide, over 23 million households have participated in the program. The FCC stated that the program is ending due to a lack of additional funding from Congress.

In a letter to Congress, FCC Chair Jessica Rosenworcel stated that users enrolled in the program have expressed concerns about its termination, citing its impact on senior citizens, families with school-age children, and military families. Without the benefits of the ACP, they face the risk of losing internet services, which could affect their employment, education, and healthcare opportunities.

New Jersey received over $6 million from the Infrastructure Investment and Jobs Act to deploy and adopt affordable, equitable, and reliable high-speed internet services across the state.

Experts are concerned that the discontinuation of the ACP may hinder state officials’ efforts to ensure residents can afford high-speed internet.

Drew Garner, Policy Director at the Benton Institute for Broadband & Society, told Spotlight PA media, “If we want to create a world where everyone can enjoy internet service, we need a program like ACP. Affordability is a major barrier preventing people from accessing the internet, particularly evident in rural areas where most of the infrastructure investment has been directed.”

Earlier this year, a bipartisan group of lawmakers proposed a bill requesting an additional $7 billion in funding for the ACP by the end of 2024, surpassing the $10 billion increase requested by President Biden at the end of last year. However, no legislative vote has been scheduled despite the proposal.

Officials urge low-income families to explore other assistance programs available to help with internet expenses, including the Lifeline program, which offers up to a $9.25 discount on phone or internet services for consumers.

For more information on the termination of the ACP program and other details, please visit fcc.gov/ACP and AffordableConnectivity.gov.