ST. CROIX — The Federal Communications Commission held a webinar Wednesday to discuss winding down the Affordable Connectivity Program that gives monthly internet subsidies to more than 23 million low-income households nationwide, including 5,096 in the Virgin Islands.
Although the program’s initial funding of $14.2 billion that Congress appropriated in 2021 to help bridge the digital divide is expected to run out at the end of April, a new funding measure has been introduced in the U.S. House of Representatives to extend the program.
In addition to distributing 12.4 million devices, the Affordable Connectivity Program provides households a monthly internet subsidy of $30, or $75 for those who live in qualifying Tribal lands.
An FCC survey of ACP households conducted last December showed how those enrolled in the program use the internet for health care, work, and education. It also showed that 68% of ACP households said they had inconsistent or zero connectivity prior to the program, while 80% of this group cited affordability as the reason for having inconsistent or zero connectivity.
While Congress considers extending the program with another $7 billion, two internet service providers in the territory with ACP households as customers are taking steps to help those households remain connected to the internet.
Viya is working to address the gap in funding when the ACP discount ends next month to aid about 3,600 households in the territory it is providing internet service to through the program. Liberty VI is developing options for about 300 ACP subscribers to continue receiving affordable internet.
ACP winding down:
Miriam Montgomery, FCC Consumer Affairs and Outreach Division chief, provided an update on the end of the Affordable Connectivity Program during a consumer webinar held Wednesday via the FCC’s website that is available to watch on the FCC’s YouTube page.
WATCH: Webinar: Affordable Connectivity Program Wind-Down
Montgomery discussed a 60-day public notice the FCC issued March 4 announcing the end of the program, reminded ACP internet service providers of the notices they must send out informing households receiving the benefit that the program is ending, and provided suggested guidance on what ACP households should do as the program comes to an end.
While the ACP benefit will be fully funded through April, funds are insufficient to pay all provider claims in full through May, the FCC announced in its March 4 public notice. Providers that choose to provide a benefit in May should plan to pass through only a reduced benefit to households that have opted-in to continue to receive broadband service after the end of the full ACP benefit.
“After May 2024, the Affordable Connectivity Program will no longer support any benefits to enrolled households,” Montgomery said during the webinar, noting that the FCC will issue further guidance later this month on what May reimbursement guidelines will be.
Providers must send at least three notices to ACP households informing them that the program is ending, as well as about the impact on their service and bills, Montgomery said. The initial notice was to be sent by January 25. The second notice must be sent by Tuesday. The final notice coincides with the last bill or billing cycle in which the ACP discount is applied.
“The notices that are going out should clearly state after the $30 discount is no longer available to that household, or the $75 discount if that household is on qualifying Tribal lands, it will need to clearly state what their undiscounted rate will be that they have to pay out of pocket,” Montgomery said. “And also, providers are required to send notices in a manner that is accessible to persons with disabilities.”
ISP compliance:
Jennifer Matarangas-King, Viya vice president of Public Relations and Governmental Affairs, said Viya has been complying with all requirements regarding the winding down of the ACP benefit. She said Viya sent out the first notice by January 25 and is following the schedule moving forward.
“I think the most important thing is we want everyone to know that we want to keep all of our customers connected, so we are encouraging everyone to stay tuned because we will provide information on how we plan to address the gap in funding,” she said. “We want to ensure that everyone that’s involved in the ACP program are aware of what’s coming and how we can assist them.”
As Congress considers extending the program with additional funding, Matarangas-King said Viya is working on providing some type of aid to its ACP households.
“We are exploring our possibilities,” she said. “We are not going to wait until May comes and say, ‘the $30 subsidy is gone.’ We are actively working on some type of post-ACP offer and will stay engaged with the community.”
Ravindra Maywahlall, Liberty USVI general manager, said in an email that Liberty is complying with the notice deadlines, noting the company has about 300 ACP subscribers between fixed internet and mobile clients.
Liberty USVI has issued its initial letter notifying ACP households that the discount will end “in the next few months” unless Congress assigns additional funding, indicating that the company will keep them informed of the decisions by Congress and any effect on their service and billing, according to the letter. The company also reaffirms its commitment to the households in the letter, noting it wants to make sure they stay connected now and in the future.
Liberty USVI strongly supports the program’s extension by Congress, according to Maywahlall. He discussed other options Liberty is working on.
“If Congress does not further fund ACP in the upcoming funding bills, it will not be funded for the rest of this year,” he said in an email. “Therefore, we do not believe that if the program is winded down, that it will be reestablished later. However, we are conscious of the economic impact on ACP households and are developing options for these households to keep receiving affordable internet, as well as making them aware of other existing government aid programs for broadband like the Lifeline program.”
Lifeline is an FCC program that help makes communications services more affordable for low-income consumers, providing up to a $9.25 monthly discount on service for eligible subscribers, and up to $34.25 per month for eligible subscribers on Tribal lands, according to the FCC.
As ACP winds down, Montgomery discussed during the webinar what ACP households should do. She urged them to review written notices about the wind down from their internet companies and the Universal Service Administrative Company that administers the Universal Service Fund under the FCC’s direction. She suggested for the households to consult with their ISPs to learn more about how the end of ACP will impact their internet service and their bill, as well as to see if they qualify for the Lifeline program.
Additional funding:
The Affordable Connectivity Program was initially funded by a $14.2 billion allotment appropriated in the bipartisan Infrastructure Investment and Jobs Act of 2021. The funding will run out at the end of April unless Congress extends it.
A bipartisan House measure introduced January 10 by Rep. Yvette Clarke (D-NY-9) that has been co-sponsored by Delegate to Congress Stacey Plaskett and 196 other members of Congress seeks to extend ACP funding. H.R. 6929, the Affordable Connectivity Program Extension Act of 2024, is a measure to appropriate $7 billion this fiscal year to the Affordable Connectivity Fund out of any money in the U.S. Treasury not otherwise appropriated.
Plaskett said the House measure already has a Senate companion bill, as well as support from more than 400 companies, government entities, community-based organizations, and all the major internet service providers. She said members of the House are trying to get the measure on the floor in the next two weeks, adding that she is hopeful it will quickly move over to the Senate.
“This is, I think, really important legislation,” she said. “It is an extension act to provide an additional $7 billion in funding to a program that is already in place, and which so many families, households, small businesses rely on.”
Tablet distribution:
As the FCC winds down the Affordable Connectivity Program and Congress considers extending the program, the Virgin Islands Department of Education announced a program on January 27 to distribute free tablets and internet service to eligible students that is tied to ACP funding. With about six weeks left for the ACP benefit to be fully funded, the Department of Education has yet to respond to WTJX about the status of the tablet distribution. WTJX made two requests for this information dating back to March 7.
The Department of Education stopped accepting applications on February 2 for qualifying students in the Free and Reduced Breakfast and Lunch Program to receive free tablets and internet service. The program is part of a partnership with Heritage Wireless and Senator Donna Frett-Gregory, who said the department has done its due diligence and submitted the necessary paperwork.
“I learned that the tablets have been on the ground for the past two weeks,” she said.
Frett-Gregory stressed that the significance of the department’s program is that children in the qualifying homes will be able to receive tablets. She remains hopeful that Congress will extend ACP funding to subsidize the cost of internet service.
“I look forward to seeing that,” she said. “I think it’s a good program for families in the Virgin Islands, and I don’t think we should leave our children behind.”
