Did you know that almost 18% of American households still lack internet access? According to the National Telecommunications and Information Administration, the high cost of broadband is one of the major barriers to digital inclusion. To increase internet accessibility, the government offers two primary programs: Lifeline and the Affordable Connectivity Program (ACP).
Both of these programs aim to promote digital equity by making the Internet more affordable. However, they have different approaches. While ACP is the successor of the Emergency Broadband Benefit that ran during COVID-19, Lifeline is a long-standing effort that initially targeted voice communication services. So, which federal broadband initiative is more beneficial for your home, and do they share the same eligibility criteria? Read this Lifeline vs. ACP comparison to find all the details.
Lifeline Program
Lifeline is a telecommunications program that has been around since 1985. The program initially targeted telephone subscribers, making the service more affordable by supporting their monthly bills. The Lifeline Program collaborated with many telephone service providers, making long-distance calling easy for countless Americans for three decades. The Federal Communications Commission (FCC) transformed this program in 2016, expanding it to provide a discount on broadband service.
Hence, Lifeline now provides a monthly $9.25 discount on internet, home phone service, or internet-voice bundles to qualifying low-income households. Meanwhile, eligible individuals living on qualifying Tribal Lands receive a monthly subsidy of $34.25. In short, the program is a major telecom affordability initiative known for its nationwide availability. However, it is only accessible to eligible subscribers.
The qualifying requirements for Lifeline are simple. Households with incomes lower than 135% of the Federal Poverty Guidelines are eligible for this program. You may also qualify if you or a family member is registered in one of the government assistance programs, such as Medicaid or SNAP. Keep in mind that this program only supports one discounted service per household.
ACP Program
The Affordable Connectivity Program (ACP) is a relatively new initiative launched in late 2021 as part of the Infrastructure Investment and Jobs Act. This program is an extension of the pandemic-specific Emergency Broadband Benefit and has brought nearly 20 leading internet providers on board, providing subsidized internet connections to over 20 million low-income households in such a short time.
ACP provides a higher monthly broadband discount than Lifeline, allowing eligible households to save $30 on their internet bill every month. Meanwhile, qualifying households on Tribal Lands receive a discount of up to $75 on their internet service. Additionally, this federal assistance initiative provides a $100 discount on a single device of your choice, making purchasing a computer, laptop, or phone easier. As a result, you can access telehealth services, complete your home assignments, and even work from home.
However, like Lifeline, ACP is only accessible to eligible households, but the qualifying criteria are much broader. Let’s look at the main differences between Lifeline and ACP so you can distinguish their benefits.
What is the Difference between Lifeline & ACP Program?
Although ACP and Lifeline are both federal programs that make telecommunications services more affordable, they have quite a few differences, including background, scope, benefits, and eligibility criteria. Understanding their dissimilarities can help you identify the best affordability program for your situation.
Program Duration
The first major difference between Lifeline and ACP is their duration. While Lifeline is a permanent federal telecommunications affordability program that has been around since 1985, ACP is a long-term initiative focused on providing temporary support. The Federal Government introduced the program as part of the Bipartisan Infrastructure Act, allocating $14.2 billion to enhance internet accessibility. With additional funds in the pipeline, ACP-eligible households can continue to receive discounted internet connections for an indefinite period.
Program Discount
Another significant difference between Lifeline and ACP is their respective discount amounts. Lifeline provides a monthly discount of $9.25 on qualifying households’ internet or voice service bills, whereas ACP takes a different approach by offering a higher discount of $30 on broadband plans.
Both programs also consider the needs of people living on Tribal Lands and offer higher discounts based on their financial situations. ACP is also a step ahead of Lifeline here, allowing these individuals to save $75 each month on broadband bills, compared to Lifeline’s $34.25 monthly discount. This contrast highlights the financial support given by both programs, making ACP the better option for significant savings. Moreover, you can get free home internet with this program by choosing an exclusive low-income internet plan from one of the best ACP internet providers.
Program Focus
While both Lifeline and ACP subsidize internet connectivity, their focus is slightly different. Lifeline began as an assistance program for telephone subscribers. However, after the FCC restructured the program in 2016, it now includes support for broadband services. Meanwhile, ACP takes a more targeted approach and solely focuses on providing affordable internet connectivity.
Program Funding
The financing methods of these federal programs are also different. While Lifeline depends on a universal service fee (USF) required of all telephone customers, Congress is responsible for allocating funds for ACP. This ensures a more balanced distribution of the ACP’s responsibilities over a broader tax base. However, it also means that the government has to ensure that the program does not run out of funds.
In contrast, Lifeline’s funding model has become imbalanced due to the inclusion of broadband service and the switch from traditional telephones to IP-based alternatives. As more Americans cut the cord in favor of Voice over Internet Protocol (VoIP) and cellular phone services, the revenue continues to shrink, impacting the funds available for Lifeline subsidies.
Eligibility Criteria
Another notable difference between the two programs is their eligibility criteria. While some prerequisites may seem similar, ACP has much broader qualifying criteria. For instance, the household income to qualify for Lifeline should be below 135% of the Federal Poverty Guidelines, and you must participate in one of the federal assistance programs:
- Supplemental Nutrition Assistance Program (SNAP)
- Medicaid
- Supplemental Security Income (SSI)
- Federal Public Housing Assistance (FPHA)
- Veterans Pension and Survivors Benefit
People living on Tribal Lands can also enjoy this benefit if they meet the household income requirements and participate in Tribal assistance initiatives like:
- Bureau of Indian Affairs General Assistance
- Head Start
- Tribal Temporary Assistance for Needy Families (Tribal TANF)
- Food Distribution Program on Indian Reservations
On the other hand, you might be eligible for ACP if your income is equal to or below 200% of the Federal Poverty Guidelines, or if you or your family members participate in one of the Tribal and federal support programs listed above, including:
- WIC (Special Supplemental Nutrition Program for Women, Infants, and Children)
- Free and Reduced-Price School Lunch Program or School Breakfast Program, including at U.S. Department of Agriculture (USDA) Community Eligibility Provision schools
- Received a Federal Pell Grant in the current award year
Moreover, you also automatically qualify for the ACP if you are a recipient of the Lifeline program. You can also combine both to get a bigger monthly discount.
Conclusion
Lifeline and the Affordable Connectivity Program (ACP) are both assistance programs established by the FCC to make telecommunication services more accessible. This Lifeline vs. ACP comparison clarifies their differences, so you can identify the more valuable program for your home.
To summarize, Lifeline has a broader scope, covering home phone and internet services, with a funding model depending on universal service fees (USF). On the other hand, ACP exclusively focuses on broadband service, with Congress directly allocating its funds. Both programs also have different eligibility requirements, and ACP covers a wider income bracket.
We have outlined the major distinguishing factors between both programs and in the end, the choice between Lifeline and ACP depends on your circumstances and requirements. ACP is an excellent option for those seeking affordable high-speed internet connection and protection from low-quality service. However, if you desire a reasonable home phone service or an internet-voice bundle, then Lifeline is the perfect solution for your home.
