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On the brink: ACP runs out

ACP is set to run out of funding by April 2024, putting 23 million Americans in a tough spot to afford the internet.

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Highlights

  • The ACP needs a $7 billion infusion to continue providing internet subsidies.
  • Bipartisan lawmakers and over 400 organizations, including Comcast and Verizon, advocate for the funding.
  • Over 23 million risk losing internet access without the Affordable Connectivity Program Extension Act.
  • The FCC warns of an "orderly wind-down," ending new ACP enrollments by early Feb 2024.
  • Alternatives and preparation steps are necessary to navigate the discontinuation of the ACP.

The Affordable Connectivity Program (ACP) is teetering on the edge of a funding abyss without a $7 billion boost through the Affordable Connectivity Program Extension Act.

A coalition of bipartisan lawmakers, including Sen. Peter Welch and Reps. Yvette D. Clarke and Brian Fitzpatrick have stepped up to save the program by subsidizing the internet for over 23 million Americans.

They're not alone in this quest; over 400 organizations, including bigwigs such as Comcast and Verizon, are throwing their weight behind this critical cause.

What's at stake? Without this extension, the digital divide could widen exponentially, leaving millions without affordable internet access.

It will reduce vital access to work, school, and healthcare.

Households across the nation stand to lose up to $30 to $75 a month in internet discounts, a harsh blow amid an already challenging economic climate.

Read more: FCC braces for an "orderly wind-down"

As the harsh reality sets in, the future of the new ACP hangs by a thread. If the extension act doesn't pass by early February 2024, many will experience a digital blackout or unaffordable rate increase.

Funding is expected to dry up around April 2024.


My take: What are your options?

In my opinion, this isn't merely about low-income and rural families staying connected; it's about preserving a lifeline that empowers work, education, healthcare, and so much more.

Saving money in other areas of your budget could help offset the increased internet access cost if ACP expires. You can potentially get up $50 per month by switching to a low-cost carrier on the same network you're used to.

Read more: Best unlimited data plans

Although this program was born out of a need highlighted during COVID-19 restrictions, it brought to the forefront a problem that has existed for years: the growing digital divide.

As the clock ticks down, the urgency to act intensifies.

While the ACP is a vital band-aid, we must push for long-term strategies that address the root causes of the digital divide.

As consumers, staying informed and prepared is crucial. Exploring alternatives, assessing your internet needs, and understanding the impact of potential ACP changes on your monthly bill are proactive steps to take.


Here at MoneySavingPro, the team and I are committed to providing resources and expert opinions to help you stay aware of important industry changes, such as eliminating ACP subsidies.

Looking at how this can directly impact you and checking out alternatives can empower you to choose the best solution for your needs and budget.

Stay tuned to MoneySavingPro.com for the latest industry news, money-saving tips, and in-depth reviews on the ever-changing world of telecoms.

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