154,000 low-income homes drop Internet service after U.S. Congress kills discount program — as Republicans called the program “wasteful”

[Macallik86]

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.

Charter's Q2 2024 earnings report provides some of the first evidence of users dropping Internet service after losing the discount. "Second quarter residential Internet customers decreased by 154,000, largely driven by the end of the FCC's Affordable Connectivity Program subsidies in the second quarter, compared to an increase of 70,000 during the second quarter of 2023," Charter said.

Across all ISPs, there were 23 million US households enrolled in the ACP. Research released in January 2024 found that Charter was serving over 4 million ACP recipients and that up to 300,000 of those Charter customers would be "at risk" of dropping Internet service if the discounts expired. Given that ACP recipients must meet low-income eligibility requirements, losing the discounts could put a strain on their overall finances even if they choose to keep paying for Internet service.

“The real question is the customers’ ability to pay”​

Charter, which offers service under the brand name Spectrum, has 28.3 million residential Internet customers in 41 states. The company's earnings report said Charter made retention offers to customers that previously received an ACP subsidy. The customer loss apparently would have been higher if not for those offers.

Light Reading reported that Charter attributed about 100,000 of the 154,000 customer losses to the ACP shutdown. Charter said it retained most of its ACP subscribers so far, but that low-income households might not be able to continue paying for Internet service without a new subsidy for much longer:

"We've retained the vast majority of ACP customers so far," Charter CEO Chris Winfrey said on [Friday's] earnings call, pointing to low-cost Internet programs and the offer of a free mobile line designed to keep those customers in the fold. "The real question is the customers' ability to pay—not just now, but over time."

The ACP only lasted a couple of years. The FCC implemented the $30 monthly benefit in early 2022, replacing a previous $50 monthly subsidy from the Emergency Broadband Benefit Program that started enrolling users in May 2021.

Separately, the FCC Lifeline program that provides $9.25 monthly discounts is in jeopardy after a court ruling last week. Lifeline is paid for by the Universal Service Fund, which was the subject of a constitutional challenge.

The US Court of Appeals for the 5th Circuit found that Universal Service fees on phone bills are a "misbegotten tax" that violate the Constitution. But in similar cases, the 6th and 11th circuit appeals courts ruled that the fund is constitutional. The circuit split increases the chances that the Supreme Court will take up the case.

Disclosure: The Advance/Newhouse Partnership, which owns 12.4 percent of Charter, is part of Advance Publications, which also owns Ars Technica parent Condé Nast.

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

Charter CEO says "customers' ability to pay" a concern after $30 discounts end.

arstechnica.com

 

[Fiji Water]

This needs to be talked about. I haven't been in JBO as much because of this cut.

Jokes aside. When I was down bad and couldn't get shyt going, having this benefit opened doors. It's a shame that it's been defeated.

 

[2 one 3]

This needs to be talked about. I haven't been in JBO as much because of this cut.

Jokes aside. When I was down bad and couldn't get shyt going, having this benefit opened doors. It's a shame that it's been defeated.

It’s sad they don’t want people who are trying to get ahead man

 

[King Poetic]

Everything is about and for the the well to do

But u have these backwood West Virginia hillbillies thinking the republicans is for them and will bring back those 1970s manufacturing plants and coal mining jobs back to bucktown Mississippi..

 

[Fiji Water]

It’s sad they don’t want people who are trying to get ahead man

Breh, only reason I got the job I have now and was able to keep up is largely because of the benefit. I will say, to keep it going is only like 5-10 bucks here and there. But that's only if you stay about business. Just got back to a regular phone plan last month.

I can only imagine someone less savvy or a misplaced person could be going thru.

 

[FreedMind]

Get these republicans out the fukking paint man I'm tired of their regressive policies

 

[CrimsonTider]

@King

 

[King]

@King

Current admin didn't do enough to protect the bill. Biden admin nor congress dems didn't fight hard enough. That's what he was voted in to do. That is what they were voted into do. Not fight for lsrael and Ukraine. This is what that "negotiation" with Republicans netted.

 

[ORDER_66]

fukk it. Build yall own internet access points like them Africans do... the govt just gonna force yall to get one of the major companies to come in and charge yall and arm and leg just to use their network...

 

[Elim Garak]

Current admin didn't do enough to protect the bill. Biden admin nor congress dems didn't fight hard enough. That's what he was voted in to do. That is what they were voted into do. Not fight for lsrael and Ukraine. This is what that "negotiation" with Republicans netted.

nikka going full crash out lol. He knows it's over for Republicans in November.

 

[Macallik86]

Current admin didn't do enough to protect the bill. Biden admin nor congress dems didn't fight hard enough. That's what he was voted in to do. That is what they were voted into do. Not fight for Israel and Ukraine. This is what that "negotiation" with Republicans netted.

Here's a snippet from what the White House put out, looks like Biden actually requested $6 billion and the Republicans refused to pass it:

At this crucial time, the White House is encouraging providers to take steps to keep their consumers connected by offering low-cost or no-cost plans or providing discounts.

On October 25, 2023, President Biden sent Congress a supplemental request for $6 billion to extend funding for the Affordable Connectivity Program. Despite that request, Republicans in Congress have failed to act. Without action from Republicans in Congress, this program will sunset at the end of May and tens of millions of Americans may no longer be able to afford high-speed internet service. It is time for Republicans in Congress to step up for families across the country.

FACT SHEET: Biden-Harris Administration Continues to Call on Congressional Republicans and Internet Service Providers to Keep Americans Connected as the Affordable Connectivity Program Enters Final Month | The White House

As part of the President’s Investing in America agenda, a key component of Bidenomics, the Biden-Harris Administration has made historic progress

www.whitehouse.gov

 

[boogers]

this program helped so many poor people

OF COURSE shytbag republicans had it axed. fukk them and their mamas

in this nation we have enough where EVERYBODY can have nice clothes that fit, good food to eat, a place to lay their head, and every porn category under the sun, but conservatives cant stand the thought of not oppressing SOMEBODY. it keeps them up at night, for real.

im not talking democrat v republican either. i mean conservative ideology. mitch mcconnell and joe manchin might be from different parties, but they are both conservatives and both would gladly let you starve to death

 

[NYC Rebel]

fukk it. Build yall own internet access points like them Africans do...

You clearly are an agent and have never lived in Africa.

You simply don't get off code and make it plain obvious that you are a plant.

 

[NYC Rebel]

Current admin didn't do enough to protect the bill. Biden admin nor congress dems didn't fight hard enough. That's what he was voted in to do. That is what they were voted into do. Not fight for lsrael and Ukraine. This is what that "negotiation" with Republicans netted.

You don't understand congress.

What does "do enough to protect the bill" even look like to you? The cruelty of the Republicans you overlook....you just focus on this imagined protect the bill stance you can't even describe.

 

[the cac mamba]

Current admin didn't do enough to protect the bill.

protect it from who