Affordable Connectivity Program Cuts Loom as Full Benefits End in April 2024
The Affordable Connectivity Program (ACP) is set to undergo changes in 2024. Providers should prepare to pass on a reduced benefit to eligible households starting May 2024, as the full reimbursement will cease the previous month. The program's future beyond 2024 remains uncertain due to lack of bipartisan support in Congress.
The FCC's Wireline Competition Bureau has announced that April 2024 will be the last month for full reimbursement of ACP-supported services. From May onwards, providers must pass through a reduced benefit to consumers. Even after the ACP ends, providers must adhere to consumer protection rules and FCC regulations.
To keep consumers informed, providers must notify those opting in for broadband service after the full ACP benefit ends about the reduced benefit and undiscounted rates. Before the program's conclusion, three notices will be sent to ACP households: two by March 19, 2024, and a final one with the last bill including the full ACP benefit.
As the ACP's future beyond 2024 remains uncertain, providers should prepare for the transition to reduced benefits starting May 2024. They must also ensure continued compliance with regulations and adequate consumer notification throughout the process.