Reimbursement Rate Estimates Released for May 2024 Affordable Connectivity Program Benefits

As previously announced, April 2024 is the last fully funded month of the Affordable Connectivity Program (ACP), and reimbursements for benefits in May will be paid on a reduced pro-rata basis. To help providers plan for partial reimbursements for May, the FCC has released estimated reimbursement ranges for each benefit type. The estimated maximum reimbursement range for May 2024 for the non-tribal service benefit is $7-16; the estimated maximum for the tribal lands service benefit is $18-39; and the estimated maximum for the ACP connected device benefit is $24-53.

These are estimated ranges only and the actual maximum reimbursement amounts may fall outside these ranges. The FCC anticipates having sufficient data to provide final maximum reimbursement amounts for May 2024 after the closing of the September 2023-January 2024 claims window on April 1, 2024. The FCC plans to announce the final maximum reimbursement amounts in April 2024.

Providers are not required to pass through any benefits to ACP households after April 2024 and can choose whether to claim the partial reimbursement for May service. Providers may also choose to offer a discount larger than the estimated reimbursement rate. If households have not opted in to paying a higher amount, however, providers are prohibited from billing ACP households for more than what they would pay had the full ACP benefit been applied. Providers offering ACP-supported service and devices are still expected to fully comply with the ACP rules.

Within the next week, the Universal Service Administrative Company (USAC) will distribute a survey to providers. Providers will have two weeks from distribution of the survey to notify USAC of their intent to participate during the partial May 2024 service month.

For more information about the ACP wind-down, contact an attorney in our Broadband, Spectrum, and Communications Infrastructure practice group.