Federal Internet Subsidy Program Expires, Leaving 1.7 Million Texas Households at Risk

Federal Internet Subsidy Program Expires, Leaving 1.7 Million Texas Households at Risk

A Lifeline Ending
The Affordable Connectivity Program (ACP), which has helped 23 million U.S. households—including 1.7 million in Texas—pay for internet service, is running out of funding by the end of April 2024. The program provided $30 monthly subsidies for low-income families and $75 for tribal households, significantly lowering bills.

For families like Daisy Solis in Peñitas, Texas, the subsidy meant extra money for essentials such as children’s shoes, meals, or utility bills. Without it, many may have to cut back on internet speed—or lose service altogether.

Disproportionate Impact in South Texas
The program’s end hits hardest in South Texas, where participation was especially high. In Hidalgo County, about half of residents relied on the ACP subsidy. Community organizers warn that without support, families will lose access to education, job opportunities, and telehealth.

Political Stalemate
While a bipartisan bill has been introduced to extend funding through 2024, it faces resistance from Republican lawmakers. Critics argue the subsidy is unnecessary, though FCC data shows 47% of participants had no home internet before enrolling.

Senior White House adviser Stephen Benjamin criticized inaction: “If Congress fails to act, 23 million Americans will lose affordable, high-speed internet.”

Local Solutions
Texas is set to receive $3.3 billion in federal funds plus $1.5 billion in state funds to expand broadband infrastructure. Yet, advocates caution that building networks without ensuring affordability could worsen inequality.

Some communities, like Pharr in Hidalgo County, are creating their own solutions. Pharr launched a municipally run internet service offering plans starting at $25/month, ensuring residents remain connected even without federal subsidies.

The Bigger Picture
Without ACP, rural and low-income areas may become less attractive for internet providers, further delaying digital equity. As one nonprofit leader put it: “If we build the infrastructure but people can’t afford access, it’s one step forward and two steps back.”

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