Broadband Affordability
Internet service costs are a major reason households are disconnected from the internet. In fact, 43% of low-income households struggle with internet affordability. Among US households making $50,000 or less, 62 percent report they can only afford an internet bill of $25 or less. Additionally, 40 percent of those households say they cannot afford to pay anything for home internet.
Strategic policies aimed at increasing access to affordable broadband have consistently demonstrated higher subscription rates and consistent connectivity among households at risk of disconnection.
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Affordable broadband is important to real people. Deanna T. of Missouri, a KC Digital Drive participant, shared her experience, noting that the loss of the Affordable Connectivity Program created a medical emergency for her family due to losing service:
“My husband had a medical incident that could not be monitored because we did not have WiFi. We were unable to afford it at the time of the incident. We live on a very strict income, and any variance causes cuts in other areas that are equally important.”
A federal broadband benefit program, like the ACP is the most efficient and effective way to address affordability. A federal benefit provides uniformity, stability and efficiencies that would not be realized through distinct individual locally funded programs.
The Affordable Connectivity Program (No longer Active)
- The Affordable Connectivity Program (ACP) was a federal initiative launched in December 2021 as part of the Infrastructure Investment and Jobs Act. Its goal was to provide low-income households with discounts on internet services, offering up to $30 per month (or $75 on Tribal lands) and a one-time device discount of up to $100.
- Unfortunately, on June 1, 2024, the program ran out of funds due to insufficient support from Congress. The ACP was the most successful program of its type, supporting over 23 million households and individuals access affordable internet, highlighting the need for federal support for affordable broadband.
Lifeline
- Lifeline is an FCC program that helps low-income consumers afford communication services.
- The program offers discounts on qualifying monthly telephone service, broadband, or bundled voice-broadband packages from participating wireline or wireless providers.
- Eligible customers can receive a monthly discount of $9.25, and those residing on Tribal lands may receive a discount of up to $34.25 per month.
For more information on eligibility and benefits, visit the Lifeline website.
Some local governments and nonprofits are trying to step in and help in response to the end of the Affordable Connectivity Program (ACP). KC Digital Drive’s subsidy program, which began in 2021, provides up to $75 per month for six months to help low-income households with internet costs. Unfortunately, as demand has increased since ACP’s end, funds for the subsidy program are quickly running out. Leslie Scott spoke a little about the program:
“We have had a subsidy program since 2021. It is up to $75 off a month for up to 6 months and $225 for past-due bills. There is no way to cover the amount that the ACP covers. Possibly doing something like utility or rental assistance in emergencies. We are running out of money for the current subsidy but are looking at DEA money and Community Development Block Grants(CDBG) to continue the subsidy.”
- Without the ACP, low-cost voluntary plans offered by ISPs can help low-income households access the internet. Understanding the elements of effective, low-cost plans and programs can aid advocacy efforts. NDIA created a Low-Cost Plan Model in collaboration with our affiliates, a tool that helps people understand the components of an adequate low-cost plan. With the end of the Affordable Connectivity Program (ACP), NDIA encourages all providers to offer this Low-Cost Plan Model to qualifying households.
- The ACP established a standard for affordable service plans, outlining specific requirements for both cost and eligibility. It also removed obstacles to enrollment in the program. NDIA’s Grading Internet for Good (GIG) reflects the lessons learned from the ACP and input from NDIA Affiliates. The rating system sets a benchmark for ISPs and encourages them to enhance their low-cost internet plans. Additionally, it is a valuable resource for policymakers, digital inclusion practitioners, and public interest organizations. See NDIA GIG’s webpage for more information on the rating and how the plans are scored.
- NDIA’s Honor Roll of Low-Cost Internet Plans webpage is a valuable resource for policymakers, digital navigators, and community members. This page will provide up-to-date information on available, affordable internet plans and the plan’s GIG score
Albemarle County’s affordable connectivity program is a local example, and Maryland’s Emergency Broadband Benefit Program (MEBB) is a state example. While the programs have concluded, there are lessons to learn from these innovative programs.
Broadband Affordability Blog Posts
Blog articles highlighting information on Broadband Affordability and ACP.
Additional Resources
Discover the value of ACP, use storytelling for advocacy, get tools, and take action to advocate for ACP.
Visit NDIA’s Honor Roll of Low-Cost Internet Plans webpage for up-to-date information on affordable internet plans available.