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"Yesterday's Delay": Rural and elderly Americans may suffer as funding for low-cost internet program depletes

Weekly, Cynthia George holds virtual conversations with her granddaughter and great-grandson. This 71-year-old retiree examines her MSN news feed and searches online for techniques to combat the insects infesting her drain in Florida's summer temperatures. She seeks discounts on her Publix...

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May 1, 2024
7 min read
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"Yesterday's Delay": Rural and elderly Americans may suffer as funding for low-cost internet program depletes

In Westman's rural Illinois town of Eureka, it's not simple to remain connected. With 5,100 people living there, many residents find it challenging to afford necessities like food and car maintenance, let alone internet access for their homes. Westman, who's 43, takes care of her child with developmental disabilities.

"When we're on the go and she's hungry, I feed her. Then I'll come home and eat," Westman said. "She doesn't realize, as she has developmental disabilities, that Mom is the one who feeds her."

Since 2021, individuals like Westman—those who left their careers to care for their children—have made ends meet with the federal government's Affordable Connectivity Program (ACP), which provides internet service. For Westman, who relies on Social Security disability payments, the $30 monthly credits save her from paying her entire internet bill.

However, these benefits may not be enough sooner than you think. The ACP might run out of funds, and Congress doesn't seem to be considering further investments. Policy experts mention a potential economic crisis and a significant step backwards in closing the digital divide between internet-haves and internet-have-nots.

In May, people like Westman and over 23 million other households will experience partial ACP benefits before the program shuts down altogether, according to the Federal Communications Commission (FCC). This is a shock that could make it even harder for low-income Americans to make ends meet.

"Because of political gamesmanship, more than 60 million Americans will be forced to make difficult choices between paying for the internet or paying for food, rent, and other utilities, widening the digital divide in this country," said Gigi Sohn, a former senior FCC official. "It's embarrassing that such a widely supported program—with backings from nearly half of Congress—will end because of political, not policy reasons."

If the program collapses, nearly 60 million people in the United States will be affected. The program is largely used by Americans aged 50+, veterans, and low-income families.

'I have to watch every penny I spend'

Cynthia George, a 71-year-old retiree from Florida, uses her internet for video calls with her grandkids and great-grandson. "I tell them I'm thrifty, not cheap," said George. "I need to account for every penny. And this would mean that the food bill would have to be cut down. There's no other place I could take it from."

The loss of the ACP can hinder many things, from medical care to obtaining benefits to school work for some.

The White House and congressional Democrats blame Republicans for blocking legislation that would extend the ACP. Texas Democratic Representative Marc Veasey, who represents a district in Dallas, told CNN that the program has benefited many red districts.

"People think this assists individuals from districts like mine in heavily populated, densely urbanized areas, but the fact is, Republican constituencies are also profiting from this," said Veasey. "Yet they're not stepping up for their own people. It's frustrating because every district will suffer due to their inaction."

Numerous ACP-subscribers expressed their anger at Congress for failing them with their inaction, essentially taking away a vital utility. The FCC has already had to halt new signups, alert users that their credits will end, and drastically cut benefits. In May, ACP subscribers will only receive half of what they've been promised.

FCC Commissioner Geoffrey Starks has traveled across the country, meeting people who rely on the ACP for access to the internet. He told CNN of people using it for telemedicine, visiting family, and participating in online services.

"It's for telemedicine, connecting with grandkids, going to church online," Starks shared.

"During a town hall meeting in Las Vegas, someone voiced their concern about the Affordable Connectivity Program (ACP) and how it's running out of money," he stated. "They argued that the program only started in 2022, and now they're being asked to pay $30 or more. That's equivalent to asking for a million dollars from these vulnerable households. These people are experts at managing their finances; $30 is a steep amount for them."

Impact on rural and elderly communities

The Affordable Connectivity Program (ACP) has been widely accepted since Congress introduced it in the 2021 bipartisan infrastructure law. It has a significant following from both major political parties, survey results demonstrate.

As many as 45% of the ACP's subscribers are military families, according to a survey supported by Comcast and the White House.

Walter Durham, a 68-year-old Navy veteran residing in San Diego, is one of them. Durham depends on the $30 per month savings to pay for the internet, which is vital for his health. "I'll have to do without Wi-Fi or find alternative ways to cover the cost if the ACP stops," he told CNN. "I'm not counting on lawmakers to help the American people."

Linda Starks, the CEO of Connect2Compete, a non-profit organization, explained that one in four ACP subscribers live in rural areas. Of these, nearly 40% have their homes in the southern United States. The survey also found that 65% of respondents fear job loss without the ACP, and 75% worry about losing online health services. 80% are genuinely concerned about their children falling behind in school.

The surprising aspect, in Starks' opinion, is how successful ACP has been in rural regions.

A significant portion of the ACP's user base is older, with almost 20% being individuals above 65 years. Additionally, at least 10 million users are aged 50 or more.

US President Biden and congressional Democrats have blamed Republicans on Capitol Hill for blocking legislation that would extend the ACP.

Michelle McDonough, a 49-year-old Maine resident who earns money part-time at a tobacco shop and receives Social Security disability pay, is another example. She relies on ACP to help her complete her associate degree via online classes and attend telehealth sessions. Like many others, when the ACP is terminated, she would have to give up other commodities to make ends meet. "There are so many other ways they could take funding from instead," she expressed her disappointment.

If the ACP ceases to exist, this shows a stark disconnect between lawmakers and their constituents, McDonough stated. "I'm trying to be a contributor to society, as they say people in such circumstances aren't. I'm trying, but at the same time, one of the programs helping me might be taken away," she added.

Newbies to home internet

In 2021, the ACP was authorized with an initial $14 billion in funding and has reached almost every congressional district in the country, making it the biggest internet affordability program in U.S. history. It harmoniously complements the billions of dollars spent on new infrastructure, the government claims.

A recent Federal Communications Commission (FCC) survey revealed that more than half of rural respondents and 47% overall claimed the ACP gave them their first experience with having internet at home.

If the ACP fails, some recipients like George and McDonough may have to resort to adjusting their spending habits to remain connected.

Kamesha Scott, a 29-year-old St. Louis mother working two jobs at Amazon and a restaurant, said she'd have to pick up more shifts to make her ends meet. This would mean spending more time away from her children.

Subscribers of the ACP could seek assistance from other government programs. The Lifeline initiative, which started during the Reagan administration, provides affordable phone or internet services to low-income households by offering a monthly discount. However, the benefits are significantly lower compared to ACP - only $9.25 per month or $34.25 for tribal users, which is way below what ACP subscribers are entitled to currently.

Bipartisan backing - but no vote yet

In early 2023, a bipartisan team of legislators from the Senate and House introduced a bill to allocate $7 billion to preserve the ACP - this is $1 billion more than what the Biden administration had requested for. This bill is supported by over half of the US House, comprising 22 Republicans and 5 members of the Senate, including 3 Republicans.

Despite this bipartisan support, the legislation is yet to progress.

According to policy analysts, it is improbable that Republican House Speaker Mike Johnson will allow the bill to reach the House floor, as the GOP has opposed government spending in general, despite the merits of the ACP.

Blair Levin, an analyst from New Street Research, commented on the situation, "It seems evident the program would continue if the speaker allowed a vote. However, so far, he has remained silent, and there have been no substantive comments about the legislation or the program."

The Johnson office didn't respond to a request for comment on proposals for renewing the ACP.

Numerous studies have highlighted the cost-saving benefits of the ACP. In one study, Levin mentioned that for every $1 invested in the program, the US GDP increased by $3.89. Furthermore, research reveals that telemedicine can lead to considerable savings in healthcare expenses.

The extension of ACP benefits could serve as an election boost for both parties as they campaign. Still, the biggest political benefit might be for Biden, given his administration's economic record.

Jonathan Blaine, a software engineer and ACP subscriber residing in Vermont, criticized Republican lawmakers who, in his opinion, prefer harming the working class to deny Biden a political win.

"You claim to be advocating for the working class, but in reality, you're often hurting them," Blaine said, directly addressing GOP lawmakers. "You're taking away ACP from farmers who can check local produce prices and negotiate better with retailers. You're removing disabled people's access to online prescription refills."

The rapid passage of bills like the recent government funding legislation illustrates the potential speed of Congressional decision-making when necessary. Westman deplored this inaction on the ACP.

"If both parties agree, there should be no obstacles and this should've been done yesterday instead of people fretting about losing this funding," Westman said.

Note: This story has been amended due to an error in the population of Eureka. It has a population of 5,100.

A demonstrator opposed to the roll back of net neutrality rules holds a sign outside the Federal Communications Commission (FCC) headquarters ahead of a open commission meeting in Washington, D.C., U.S., on Thursday, Dec. 14, 2017. The FCC is slated to vote to roll back a 2015 utility-style classification of broadband and a raft of related net neutrality rules, including bans on broadband providers blocking and slowing lawful internet traffic on its way to consumers.

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    Source: edition.cnn.com

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