FCC: 2.31 Mn US Households Sign Up for Broadband Subsidy

On Monday, the Federal Communications Commission said that a total of 2.31 million US households have signed up to take part in a temporary $3.2 billion broadband subsidy program created by Congress in December.

Broadband Subsidy Program Gaining Popularity in the US

Over 1,000 broadband providers have agreed to take part in the program. This subsidy program will provide lower-income Americans or people affected by COVID-19 with discounts on monthly internet service. What's more, this program will also cover laptops or tablet purchases as well. However, some providers estimated the program could run out of money in four to six months.

The data released by FCC showed that in the first 11 days, 1.5 million households enrolled. After than, only about 800,000 have enrolled in the last two weeks.

Acting FCC Chairwoman Jessica Rosenworcel said, "I am thrilled to see that the great need for affordable broadband support is being met with over 2 million households enrolled in three short weeks".

The discounts are worth up to $50/month for internet service, and up to $75 on federally recognized tribal lands. The Congress is funding these discounts since December. Also, consumers can get a one-time discount of up to $100 to purchase a device from participating providers.

People on Medicaid or those who accept Supplemental Nutrition Assistance Program benefits are also eligible. Also, households with children receiving free and reduced-price lunch or school breakfast; Pell Grant recipients; and those who have lost jobs and seen their income reduced in the last year are also eligible for the scheme. Notably, there are 33.2 million households eligible for the subsidy that already qualify for an existing program called Lifeline, funded through surcharges on phone services.

However, the funding will run out soon on the program. Whether and how the Congress will choose to extend the program and how it would pay for it is still a question.