Millions will have higher internet and phone bills this month: Here's why

(NEXSTAR) – Over the past few years, millions of Americans have received discounted Internet and phone service as part of the FCC’s Affordable Connectivity Program. That will change as the program runs out of funds and bills aimed at providing more money have stalled in Congress.

As of 2021, eligible households (those with incomes below 200% of the poverty line, or those in which someone was receiving a government benefit such as SNAP, Medicaid, or WIC) have been able to get Internet or phone service on free through the Affordable Link Program, or ACP.

According to the FCC, more than 23 million households signed up for the program at one point, receiving $30 in subsidies on their Internet or phone bills — or $75 if they lived on tribal lands. In May, the maximum subsidy dropped to $14 and $35 for tribal lands.

As of June, funding for the program has run out. That means millions of customers will see their bills revert to pre-program totals or higher if the provider raises rates during the pandemic. Some providers will continue to offer discounted service — Verizon and AT&T recently outlined those affordable plans for Nexstar.

“It is unfortunate that the Federal Communications Commission must end the most successful broadband affordability program in our nation’s history,” FCC Chair Jessica Rosenworcel wrote in a letter Thursday to Ohio Republican Congressman Dave Joyce , who heads the House Appropriations Subcommittee. Services and General Government.

During the ACP shutdown period, there were hopes that Congress would act to provide more funding for the program.

In January, Sen. Peter Welch (D-Vt.) and Rep. Yvette Clarke (D-NY) introduced companion bills that would provide additional funding for ACP. Both bills, as well as a similar bill introduced by Sen. John Fetterman (D-Pa.), however, have stalled.

“It’s not too late to save the nation’s largest broadband affordability program,” Rosenworcel said in a statement Friday. “ACP was very influential and has a lot of bipartisan support on Capitol Hill and around the country to continue and say it was good while it lasted. Bipartisan efforts to secure more funding for ACP are ongoing and the FCC is ready to restart the program as soon as any additional funding is secured.”

President Joe Biden also called on Congress to expand funding for ACP, after the White House announced commitments from 14 companies to provide affordable internet to low-income families by 2024.

As of Friday, those companies that said they would continue to offer their $30 or less plans to people who previously took advantage of the federal subsidy include AT&T, Comcast, Cox, Spectrum, Verizon, Allo Fiber, altafiber ( and Hawaiian Telcom). Astound Broadband, IdeaTek, Mediacom, MLGC, Optimum, Starry and Vermont Telephone Company, according to The Hill.

It’s worth noting that eligibility for those plans may be more restrictive than those for ACP.

The FCC has recommended that customers contact their service providers for alternative low-cost plans.