Millions Of Californians Could Face Higher Internet Bills As Federal Low-Income Discount Ends

Los Angeles Mayor Karen Bass is one of 150 U.S. mayors who have signed a letter urging Congress to save a program that allows millions of low-income residents to connect to the internet.

More than 2.8 million California households are enrolled in the Affordable Connectivity Program, which provides a $30 monthly service discount and up to $75 per month for households on Tribal lands. The ACP also comes with a $100 discount to purchase a computer or tablet.

The program will stop accepting new applications on Feb. 7 unless Congress votes to extend funding. If it doesn’t, the $14.2 billion program is expected to run out of money in April, and millions of people will lose their discount.

The Biden Administration has requested an additional $6 billion to keep it going as part of its domestic supplemental funding request to Congress. The money would extend the program through the end of 2024. FCC Chairwoman Jessica Rosenworcel said the agency has already started winding it down to give providers, households and other stakeholders enough time to prepare.

Local leaders and advocates in Los Angeles have been sounding the alarm about the fate of the ACP for months. They say ending the program could hurt efforts to close the digital divide — the gap between those who have easy access to modern technology, and those who don’t.

Emma Hernandez, CEO of the Southeast Community Development Corporation, worries that an increase in cost will be too much for many households to bear.

“When the budget doesn't allow, the first thing to go is the internet,” she said.

But while the program itself is helpful, enrolling in it can be challenging, especially for people with limited tech skills or those who don’t have computers or Wi-Fi at home.

“If you go on to the ACP website, what you'll notice is the person first has to know how to navigate a computer and fill an application out,” Hernandez said. Her group helps low-income residents enroll in the ACP and provides digital literacy trainings.

Data shows half of Los Angeles County households are eligible for the discount. But only 55% — or 912,000 households — are enrolled so far.

Tackling internet prices

While the Affordable Connectivity Program is in a state of limbo, California lawmakers are considering their own plan to help low-income residents. Instead of offering a discount directly, a new bill called the Affordable Internet and Net Equality Act would require the state to only do business with companies that offer affordable home internet service, as low as $40, to low-income residents.

Supporters say it’s more important now than ever, given the uncertain fate of the ACP. Opponents — mostly internet service providers — call it an “attempt at rate regulation” and say companies already offer affordable plans in low-income communities.

The bill could die Thursday unless lawmakers vote to move it forward during a meeting in the state’s Appropriations Committee. Watch it live here.

The bill is sponsored by Rep. Lori Wilson of the 11th District, which covers parts of Solano, Sacramento and Contra Costa counties. She’s been working with the California Emerging Technology Fund (CETF) to move the issue forward.

“It'll probably take many, many defeats before we have the final victory,” said CETF President and CEO Sunne Wright McPeak.

The group says it's prepared to reintroduce the bill for a third time if it dies in committee this week. A previous version would have required internet companies to not only offer but advertise their cheapest offers for residents in need.

Advocates say that’s because people often don’t know their options, and because companies try to upsell residents into buying plans they can’t afford.

“Nobody is forcing internet service providers to be a vendor to the state of California. They love it because it's lucrative,” Wright McPeak said. “The question is going to be: Where do our policymakers stand … and do they mean it when they say they are dedicated to digital equity?”