Two federal programs once worked side by side to help low-income households afford phone and internet service. One is still running. One is not. If you've heard both names and aren't sure what either one covered — or what happened — here's a clear breakdown.
Both Lifeline and the Affordable Connectivity Program (ACP) were federal benefit programs administered through the Federal Communications Commission (FCC). Both were designed to make communication services more affordable for eligible low-income households. But they had different origins, different scopes, and very different fates.
Lifeline is the older of the two programs — it's been around since 1985, originally created to help low-income households afford basic telephone service. Over time, it evolved to include wireless phone service and eventually broadband internet.
Lifeline provides a monthly discount on phone or internet service for eligible subscribers. The benefit applies to one service per household — not per person. A household can use it toward a home phone, a wireless phone plan, or in some cases broadband service, depending on what participating providers offer in their area.
Key characteristics of Lifeline:
Eligibility is based on income level or participation in certain federal assistance programs such as Medicaid, SNAP, SSI, Federal Public Housing Assistance, or Veterans Pension and Survivors Benefit programs. Income-based eligibility is generally tied to a percentage of the Federal Poverty Guidelines, though specific thresholds can vary and are subject to change — checking with the National Verifier or your state's program is the most reliable way to confirm current requirements.
The Affordable Connectivity Program launched in late 2021 as part of the Infrastructure Investment and Jobs Act. It was designed to go further than Lifeline — specifically targeting broadband affordability at a time when reliable internet access had become essential for work, school, healthcare, and daily life.
ACP offered a larger monthly discount than Lifeline, applied specifically toward internet service. Households on qualifying Tribal lands were eligible for an even higher benefit. It also included a one-time device discount — a connected device (laptop, tablet, or desktop computer) purchased through a participating provider could be discounted, subject to a co-pay.
Key characteristics of ACP:
This is the critical update: the ACP ran out of congressionally approved funding and stopped accepting new applications in February 2024. The program issued its final benefits in May 2024. As of now, ACP is no longer active. Households that relied on the ACP discount lost that benefit when the program wound down, and there has been no funded replacement program enacted as of this writing.
| Feature | Lifeline | ACP |
|---|---|---|
| Status | ✅ Still active | ❌ Ended (May 2024) |
| Benefit type | Monthly discount on phone or internet | Monthly discount on internet service |
| Benefit size | Smaller monthly amount | Larger monthly amount |
| Device discount | No | Yes (one-time, with co-pay) |
| Focus | Voice and/or broadband | Broadband only |
| Funding source | Universal Service Fund (ongoing) | Congressional appropriation (exhausted) |
| Per household limit | One benefit | One benefit |
| Can be combined? | Yes — the two could be stacked | No longer applicable |
One important feature that existed while both programs were active: eligible households could receive both Lifeline and ACP benefits simultaneously, applying them to their internet bill. This meant qualifying households could stack both discounts, sometimes bringing broadband costs down to zero with certain providers. That stacking option ended when ACP shut down.
Lifeline remains the only active federal connectivity subsidy program at this time. It's a smaller benefit than what ACP provided, and it's focused on keeping basic phone or internet service accessible — not eliminating the cost of broadband the way ACP sometimes could.
If you lost your ACP benefit and are wondering where things stand, the relevant factors to look at include:
The gap left by ACP's closure is real. For households that had been using both benefits together, monthly internet costs went back up — in some cases significantly. Lifeline continues to exist, but it was never designed to carry the full weight of broadband affordability on its own.
Whether any new federal program will fill the gap depends on future congressional action — something that cannot be predicted or promised. What you can do is make sure you're not leaving available Lifeline benefits on the table while the landscape continues to evolve.
