Democracy Dies in Darkness
Economic Policy

Funding shortfall forces FCC to slash monthly broadband benefits in May

With Congress stalled on approving new funding for the low-income benefit, some Americans could see their aid halved, and others may not receive a subsidy at all.

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Updated April 10, 2024 at 1:51 p.m. EDT|Published April 9, 2024 at 4:40 p.m. EDT
President Biden speaks in Raleigh, N.C., on Jan. 18. (Manuel Balce Ceneta/AP)
3 min

A federal program that has helped roughly 23 million American households receive free or heavily discounted high-speed internet is set to see sharp cuts in May, leaving many low-income families facing possible price hikes — or the imminent loss of service altogether.

Congress has not yet approved new money for the digital initiative, so the Federal Communications Commission announced Tuesday that it would have to reduce the maximum payment: Many will see their subsidies fall to $14 per month, less than half of what some now receive toward their broadband bills.