ACP (old)

Possible progressive termination of the Affordable Connectivity Plan (ACP)

What is the AffordableConnectivity Plan (ACP)?

The AffordableConnectivity Plan (ACP) is a federal FCC (Federal Communications Commission) program that offers eligible households a discount of up to $30 per month on internet service.
Eligible households can also receive a discount of up to $100 on the cost of a laptop or desktop computer, or an electronic tablet, purchased from a participating vendor, if the household contributes a minimum of $10 and a maximum of $50 to the purchase.

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What does the possible progressive completion of the ACP mean?

In 2021, Congress established the creation of the AffordableConnectivity Plan (ACP) in the bipartisan Infrastructure Law and allocated $14.2 billion to this program.
It is estimated that ACP funds will run out when the month of April 2024 ends. If this happens, households enrolled in the program will no longer receive ACP discounts.
As of January 2024, Congress has not allocated additional funds to maintain the ACP program beyond April 2024.

As a result, the FCC and the Government of Puerto Rico have begun to take steps aimed at the possible closure of the ACP.

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ACP data in Puerto Rico:

$386,073,448 of total investment in the island as of November 2023 ($19.2 million per month)
66 Internet providers in Puerto Rico that currently offer ACP to their customers
In Puerto Rico, the 86.3% of the households have computers, compared to the average in the United States, which is 95.7% of households**
In Puerto Rico, the 51.8% of households have a fixed internet subscription, compared to an average of 75.9% in the United States**

El 21.4% of households in Puerto Rico only have a cellular data plan, compared to an average of 11.2% of households in the United States**

_{**Date of the US Census Bureau's 2022 American Community Survey (1-year estimate)}

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_{*Data obtained from: USAC 2023}

The Government of Puerto Rico has been working hand in hand with other states, territories and the Telecommunications industry to seek viable solutions for the continuation of this subsidy to request alternatives and the availability of funds.
The Puerto Rico Broadband Program, Smart Island, is committed to supporting any efforts made to approve additional funds and any other issue that may contribute to the benefit of our citizens.
Letters have been sent to different congressmen and governors who are working in the same direction, since a critical sector of Puerto Rico will be affected by the completion of the program, since 65% of the population is eligible and more than 600,000 households currently benefit. If a public hearing of the issue occurs in Washington, the Smart Island program will participate and present the impact of ACP in Puerto Rico.
The Smart Island program held a meeting of the Digital Equity Subcommittee on January 30, 2024, and was attended by the FCC, who explained the possible termination of the ACP and how it would be handling these coming months with challenges and opportunities.

In February, the Smart Island program will be visiting Washington DC as part of the official trip to the National Governors Association and will have several meetings with entities on this important topic.
The program invites you to comment on the importance of ACP and its extension to: info@smartisland.pr.gov.

H.R 6929: Federal House of Representatives Project - Affordable Connectivity Program Extension Act of 2024: Proposing to inject $7 billion to extend the life of the subsidy.
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