ACP Broadband Subsidy Money Runs Out. Federal Program Won’t Continue Uninterrupted

Subsidies save money in the long run, studies show

The ACP is a “money saver to our unemployment system,” Blair Levin, chief of staff to the FCC chair for nearly four years during the Clinton administration, said to AARP ahead of his testimony at the same hearing. “If you want to retrain for a job or get a new job and not be on unemployment [insurance], what is the mechanism you’re going to use? Well, it’s going to be online.”

Levin, now a nonresident senior fellow at the nonprofit Brookings Metro think tank, added, “I’m pretty sure that health care by itself could justify this [continuation of the program]. In other words, you save a trip to the emergency room, people in telehealth can show up for their appointments easier, and they do preventive treatments more readily.”

Three-quarters of adults 50 and older had telehealth appointments at least once in the past 12 months, according to an AARP survey conducted earlier this year. And 9 out of 10 were satisfied with the experience.

In the hearing, Levin mentioned a study from the Wilmette, Illinois–based Benton Institute for Broadband & Society that indicated $1 spent in the Affordable Connectivity Program returned $2 in economic benefits to those using the program. Less quantifiable benefits include the convenience of having internet at home rather than going to a library or other public location in search of Wi-Fi, and time and money saved when using telehealth visits versus more expensive options.

Another working paper from two economists at George Mason University in Fairfax, Virginia, looked at the effects of ACP spending on the gross domestic product and found that every $1 spent resulted in $3.89 in economic gains, Levin said. 

‘ACP discount helps make every dollar stretch’

AARP is also in favor of preserving the internet stipends. The nonpartisan nonprofit submitted a statement at the hearing that highlights the critical role high-speed internet access and affordability play for older adults.

“The ACP discount helps make every dollar stretch just a little further so these households can more easily afford prescription drugs, food and other necessities,” the statement reads in part.

AARP cited recent surveys in which 87 percent of older adults indicated they were concerned about losing online access to government benefits like Social Security and Medicare, and more than 7 in 10 about losing communication with loved ones and health care services if the discounts were discontinued.

The program provided limited-income households — those that earn up to 200 percent of federal poverty guidelines — with $30 a month to cover all or most of the cost of high-speed internet service. The subsidy climbed to $75 per household on tribal lands.

“We all lose when ACP ends,” said Jennifer Case Nevarez of Santa Fe, New Mexico, who is the head of an educational nonprofit called the Community Learning Network. She mentioned a Navajo elder she works with who now will have to drive 52 miles to the nearest library to get online just to check her email.

The program has been exceedingly popular with older adults. While $30 may seem like a modest sum to some, losing it will force people on fixed or strapped incomes to make difficult economic trade-offs, whether cutting down on gas and food or going outside the home to take advantage of free internet.

“Do you use a cellphone, computer or laptop? Do you have internet access at home? Do you ever check emails from home; correspond with staff or constituents online; attend a group meeting online; review documents or do research online; make payments or check accounts; purchase goods, food or tickets online; access health information or make appointments online? The modern world is driving all of us online,” she said.

Consumers have some options to reduce costs

For now, consumers with limited incomes aren’t completely out of options. The decades-old federal Lifeline program provides a $9.25 monthly phone or internet discount for households that earn 135 percent or less of the federal poverty guidelines. Some people may also qualify under certain federal assistance programs.

And some for-profit providers are stepping up with discounts. Households in the ACP in Comcast service areas are eligible for the company’s $9.95-a-month Internet Essentials home internet plan, which has been offered for 10 years.

T-Mobile says its existing ACP customers with Assurance Wireless can keep their service and current pricing through August. Metro by T-Mobile customers with the ACP can keep their current discount through the June bill and then have the option for a monthly $15 discount on the ACP line through August.

If you’re receiving ACP benefits with another internet provider, ask the company what discounts and policies they’ll continue to help ease the financial burden.