More than a dozen companies will offer certain low-income households a high-speed internet plan for $30 or less a month until the end of the year as a federal government program that gave families discounts on internet bills fully expires on Saturday, the White House announced.
Fourteen internet service providers -- including Charter Communications, the parent company of Spectrum News -- have agreed to offer the $30 plan with no data caps or fees through 2024 for households who were on the Affordable Connectivity Program. In total, the move is expected to reach more than 10 million households who were on the broadband discount program, according to the White House.
“While we're very happy to see companies pledging to continue these plans, President Biden knows that even $30 is too much for many families,” White House Director of Public Engagement Steve Benjamin said on a call with reporters. “That's why he'll continue calling on Congress to restore funding for the Affordable Connectivity Program.”
The ACP – created by one of President Joe Biden’s most frequently touted pieces of legislation, the Bipartisan Infrastructure Law passed by Congress in 2021 – provided qualifying households with a discount of up to $30 on their monthly internet bills. Those on Tribal lands received $75 a month.
In 2022, the Biden administration also secured commitments from some companies to offer $30 plans, meaning those on the program who were receiving the $30 government subsidy did not need to pay anything for internet service.
The monthly subsidy was a major tool for Biden – who has pledged to connect every household to high-speed internet by 2030.
Without additional funds for the program approved by Congress, the Affordable Connectivity program, (ACP) began running out of money this month. As a result, monthly discounts in May were lowered to $14 for most households and $35 for Tribal ones. The government had already stopped taking new applications for the program in February and the funds, and thus the subsidies to households, are set to completely run dry in June.
The program was reaching 23 million households before funding ran out.
Federal Communications Commission Chair Jessica Rosenworcel sent letters on Thursday to the top Democratic and Republican lawmakers on key congressional committees letting them know the program has been shuttered and urging them to approve more funds.
“Additional funding from Congress remains the only near-term solution to keep this vital program up and running,” Rosenworcel wrote.
Efforts on Capitol Hill to direct more money to the program have thus far stalled.
Some Republicans have called for reforms to the program, such as the top Republican on the Senate Commerce Committee, Sen. Ted Cruz, R-Texas., who recently put forth a proposal that would designate $4 billion for the ACP while implementing reforms, including a new step to verify that a household is eligible as well as more stringent standards to qualify for the discount in the first place.
The internet service providers who have agreed to keep the $30 plans going until the end of the year include Charter Communications, Allo Fiber, altafiber, Astound Broadband, AT&T, Comcast, Cox, IdeaTek, Mediacom, MLGC, Optimum, Starry, Verizon and Vermont Telephone Company.