Low-income homes drop Internet service after Congress kills discount program

Enlarge / A Charter Spectrum vehicle. (credit: Charter)

The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. On Friday, Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount. About 100,000 of those subscribers were reportedly getting the discount, which in some cases made Internet service free to the consumer.

The $30 monthly broadband discounts provided by the ACP ended in May after Congress failed to allocate more funding. The Biden administration requested $6 billion to fund the ACP through December 2024, but Republicans called the program "wasteful."

Republican lawmakers' main complaint was that most of the ACP money went to households that already had broadband before the subsidy was created. FCC Chairwoman Jessica Rosenworcel warned that killing the discounts would reduce Internet access, saying an FCC survey found that 77 percent of participating households would change their plan or drop Internet service entirely once the discounts expired.