ACP May Get $6 Billion Lifeline With New Bipartisan House Bill

Two members of the House of Representatives introduced legislation Tuesday to provide the now-defunct Affordable Connectivity Program (ACP) with $6 billion in funding to renew the program.

The House bill, proposed by the bipartisan duo of Reps. Nikki Budzinski (D-Ill.) and Mike Carey (R-Ohio),  is a companion to the Senate’s Secure and Affordable Broadband Extension Act , sponsored by Sen. Ben Ray Luján (D-N.M.) in May.

“I just introduced a bipartisan bill to restore the Affordable Connectivity Program and reduce internet costs for millions of low-income families,” Budzinski said in a post on X (formerly Twitter). “Thank you to @RepMikeCarey and the 10 colleagues from both sides of the aisle who are joining us in this effort.”

The program would provide the ACP with $6 billion in funding, do away with the the program’s one-time $100 subsidy, tighten the qualifications for eligibility and provide $3 billion for the FCC’s rip-and-replace program , an also-underfunded program aiming to rid U.S. networks of technology from suspect Chinese suppliers.

Also Read: Affordable Connectivity Plan Set To Expire Despite Last-Ditch Funding Efforts

The original ACP allowed enrollment of households earning less than 200% of the federal poverty guidelines, or about $41,000 for a family of two.

Prior to February, when the ACP stopped accepting new enrollments, nearly 24 million U.S. households were enrolled in the program.

ACP, which was introduced at the end of 2021, ran out of money on May 31.  High-speed internet providers, including Charter Communications, have attributed recent steep broadband customer losses to the defunding of the ACP.

The Benton Institute for Broadband and Society said ending the ACP for good will result in $2 billion in lost consumer benefits for Americans.

Under Budzinski-Carey’s proposed bill, the eligibility threshold would fall to those with incomes 135% above the poverty line, or about $28,000 for a family of two.

While the new language would exclude some households once covered by the ACP, $6 billion in new funding would enable the Federal Communications Commission to sustain the program through the end of the year.