FCC: Millions Could Lose Internet Access if Subsidies Discontinued

The Federal Communications Commission is urging lawmakers to approve the budget for its internet subsidies or millions of Americans are at risk of losing affordable internet access.

In a letter to the Congress, FCC Chairperson Jessica Rosenworcel said that more than 1,700 internet providers "may cut off service to households" as early as April once the existing funds were exhausted.

With the budget at the red line, nearly 23 million households are facing higher internet bills in the near future if not having their access totally cut off.

Rosenworcel pointed to the requested $6 billion infusion to keep the Affordable Connectivity Program and "reach others that may be on the wrong side of the digital divide."

The FCC will begin its initial steps to reduce beneficiaries for the ACP this week if no assurance for continued funding is given.

The FCC also plans to stop taking new applications as it prepares a specific termination date for the program.

US Continues to Face Nationwide Internet Access Issue

In 2021, nonprofit group EveryoneOn reported that at least 18% from lower-income households lost their access to the internet "because of difficulty paying their internet bills."

Over 40% more said they could not afford high-speed internet. Many came from rural areas where internet access is limited and much pricier than in urban cities.

As of writing, the average internet bill rolls around $76.83 per month with many households paying as high as $90 each month.

The prices have little difference from their cost pre-pandemic while internet speeds remain relatively the same for those paying for budget internet services.

Congress Casts Doubt on ACP Funding

While both the White House and the Senate have expressed support for the continuation of the ACP funding, several lawmakers expressed concerns over the potential misuse of such a large budget.

The US Government Accountability Office noted back in January last year that the FCC lacked a proper anti-fraud agency.

Questions about the claimed improper fund management between June 2021 and July 2022 were also raised again.

The FCC has since taken to amend funding management concerns, according to the latest GAO reports.