Subsidized Internet - $30 off per month

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Scott 2
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Subsidized Internet - $30 off per month

Post by Scott 2 »

Applications for the Affordable Connectivity Program opened today. Up to $30 per month - if you are below 200% of the federal poverty line for income, or meet some of other criteria:

https://acpbenefit.org/how-to-apply/

The intent is to funnel subsidy money to internet companies, while forcing them to provide a consumer benefit. It doesn't appear to be means tested. You do need documented proof of income.

What I could not figure out, is how the subsidy interacts with negotiated contracts. IE - I have a $20 per month plan today, with a year contract. Retail for that plan is $45. With the subsidy, would I pay $15 or $0?

My bet is $15. Between that and not having a great proof of income, I decided not to pursue it this year. I'd be interested in the experience of others who do. I view this as a form of tax optimization and will reconsider it next year.

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

I got approval for the ACP program, for 2023. It required submitting my 2022 tax return, waiting for the application to be approved, then reaching out to my internet provider to join the program. Maybe an hour total work. In 1-2 billing cycles, I expect to see the a $30/month credit.

Thought I'd bump this for those who hadn't seen the program. Since we're keeping income below 2x poverty for health insurance purposes, this was an easy win.

M
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Re: Subsidized Internet - $30 off per month

Post by M »

How much will it be after the credit?

The normal rate for my internet plan is only 20 dollars/month.

Would this mean I pay 0 dollars after the credit?

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

Yes, you would pay $0 after the credit. I expect our bill to go from $30/month to 0. At least until our current promotional rate expires.

Interestingly - we were paying $20/month. Once this subsidy was available, our provider raised their lowest rate to $30/month. This is for 50 up, 10 down. It's a good example of why I go out of my way, to pay the ISP as little as possible.

We've been cancelling service annually, switching the account between myself and my wife, to keep the best rate. We bought our own modem several years ago, making the process only mildly annoying. I'm not sure how that strategy plays with keeping the subsidy. I suspect my wife would need to qualify under a new ACP app, and then open a new account.

Walwen
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Re: Subsidized Internet - $30 off per month

Post by Walwen »

It is worth noting you get one ACP benefit per household. I.e. you can use it for phone OR internet but not both. So don't get home internet for free if you are wanting to get one of those "obama phones" aka "free government phones" (Assurance Wireless, etc)- this program is what those are. The ACP benefit also comes with a one-time benefit to purchase an approved device, i.e. that's how they give the phone itself for free. I've never seen people give out the routers though- but they WILL give out tablets.

I use mine for 30 dollars off my 45 dollar phone bill. I could get it for free, but I have very spotty home wifi and so I pay an extra 15 for unlimited phone data and some hotspot data. I use Straight Talk i.e. Walmart's plan.
I used my SNAP benefit statement to apply, but my tax return would have worked fine too. I got the approval within 48 hrs, but the website was a bit hellish to navigate. People who aren't tech savvy would need help.

And yeah, since this became a thing, 30 dollars become the bare minimum for a phone plan.... cheeky companies. Also all those restrictions about only getting phone OR internet, one benefit per household, etc etc? From my experience no one seems to monitor that. I watch people get the free phones all the time and I've seen people get multiple phones and tablets per year.

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

Looks like the ACP may be phasing out, over the next few months. Ultimately, I don't think the effort in chasing the subsidy was worthwhile.

My ISP was one step ahead. They locked me into a contract during Q3 last year, ensuring I pay full price 6 months past subsidy termination.

Netting that out, at best I've had a very low hourly return on my effort. At the added cost of privacy loss and vendor lock in. Maybe I could play more games to break the contract, but I still want Internet.

My wife and I are discussing practicality of going cellular data only. At least it'd get one more corporation out of our lives.


The book Poverty by America changed my perspective on low income subsidy programs. I now see them as comparable to the mortgage tax deduction or farm loans.

However, I'm finding a common fault with programs to ease the burden of low income individuals. The administrative bureaucracy destroys any practical benefit.

Over the past year, I've also investigated utility assistance programs and a university clinic's assistance program. In both cases the patterns were similar. A total disregard for one's time and privacy.

In a way, it's freeing. Practical experience justifies an immediate opt out. No wondering if I've left something good on the table.

jacob
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Re: Subsidized Internet - $30 off per month

Post by jacob »

Scott 2 wrote:
Tue Jan 30, 2024 9:46 pm
However, I'm finding a common fault with programs to ease the burden of low income individuals. The administrative bureaucracy destroys any practical benefit.
IOW, it makes the "hourly wage" so low that most people won't bother with it(*). A similar point is made in Shepard's book discussed here: In principle the shelter could easily be made nicer to live in---for example, the part of the shelter reserved for veterans is quite nice---but if it was many would never move out and more might move in figuring it better than paying rent. Also why dealing with insurance claims take so long. And so on.

(*) Compare to DIY laundry soap where the effective hourly wage is so high that it's crazy not to make it.

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Seppia
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Re: Subsidized Internet - $30 off per month

Post by Seppia »

jacob wrote:
Wed Jan 31, 2024 7:49 am
Compare to DIY laundry soap where the effective hourly wage is so high that it's crazy not to make it.
I pay less than $20 for over 5 liters of excellent quality Costco detergent, which lasts the whole family, I don’t know, 6 months to a year?
It smells great and works great.
Is it THAT easy to make a comparable quality* DIY product?

*important for me

jacob
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Re: Subsidized Internet - $30 off per month

Post by jacob »

No, but you can get 80% there in quality in under 5 minutes for <$1. No smells.

theanimal
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Re: Subsidized Internet - $30 off per month

Post by theanimal »

FWIW, We use DIY detergent as well, including for cleaning cloth diapers and it's effective at cleaning those. Mrs. Animal made the last batch for ~$3 last year. It's well over 300 loads worth.

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Ego
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Re: Subsidized Internet - $30 off per month

Post by Ego »

Scott 2 wrote:
Tue Jan 30, 2024 9:46 pm
However, I'm finding a common fault with programs to ease the burden of low income individuals. The administrative bureaucracy destroys any practical benefit.
There are whole industries set up to act as "feeders" for programs, helping the most needy navigate the system. One of our tenants works as a feeder. Her organization gets a large payment from the government for each person they help navigate the multiple programs available to them. When funding get tight the programs increase their oversight by requesting more documentation. This eliminates all but the most determined individual applicants, leaving only the professionally managed poor people on the program.

WRT detergent, Mrs. Ego makes the DIY stuff to start us off, but we often find free bottles of Tide when tenants move out or simply leave half-full bottles in the laundry trash. IMO, Tide works better at removing dirt/stains/smells, but it has its own very strong - overwhelming - perfumed smell that is not for us.

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

jacob wrote:
Wed Jan 31, 2024 7:49 am
IOW, it makes the "hourly wage" so low that most people won't bother with it(*)
The food pantry I volunteered at barely attempts to validate income. Officially you qualify for state food at 1.8x poverty line. In practice - proof was signature on a form nobody read. It was the same problem - getting free food took 2-4 hours. It only makes sense if you are not allowed to work. If you physically cannot work, there's a good chance it's not feasible to get there.

I considered that a severe bug. How do you help someone climb out of poverty, if you waste all their time? But maybe others see it as a feature.

There were definitely volunteers who viewed pantry recipients as lesser. Convinced people were there to abuse the system - lie about income, sneak extra visits, take food to sell, etc. Anecdotally - the closer volunteers were to needing assistance, the stronger they felt this way. It seems unlikely. There are far better scams. Hell - sign up as a volunteer and pick-up weekly grocery store donations. Skimming those would be trivial and undetectable. You'd get first chance at the medicine and alcohol a pantry cannot give away.

But the paternalism permeates subsidy programs. When viewed as low income tax breaks, it seems especially broken. Compare to a mortgage interest deduction. Night and day.

The privacy aspect is especially troubling, as it's such a deeply hidden hourly cost. My income qualifies for assistance at the university clinic. Federally mandated. But getting it meant a full disclosure of my financial life. Tax forms, ID's, all financial accounts, etc. I decided keeping my data private was more valuable. I could afford to decline the security risk. Absent that - the hourly return would have been pretty good.


Coming full circle - as an early retiree performing tax optimization, the assistance programs have proven impractical. At least DIY laundry detergent can be done on your schedule, in the privacy of your home.The national TV audience is optional.
Last edited by Scott 2 on Wed Jan 31, 2024 9:54 am, edited 1 time in total.

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

Ego wrote:
Wed Jan 31, 2024 9:29 am
When funding get tight the programs increase their oversight by requesting more documentation. This eliminates all but the most determined individual applicants, leaving only the professionally managed poor people on the program.
The energy subsidy works this way. It's a 1-2 month wait to meet with a person, whose sole purpose is to complete the application for you. As an individual, you are not allowed to do it. Gathering the required documentation requires a high level of organization. The program pays out around $200-300.

Navigating to the right program branch is complicated. Like they literally offer a 1 hour webinar explaining all the nuances. Officially - various programs cap out at 2-4x poverty. But the return on effort makes little sense. It all feels very performative.

UrbanHomesteader
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Re: Subsidized Internet - $30 off per month

Post by UrbanHomesteader »

Just called Xfinity and signed up for their Internet Essentials Plus internet plan, which is discounted internet for those who are eligible for the current subsidy. The monthly cost is $30 vs the $50 of my prior plan, and I get faster speeds with the switch. With the $30 federal subsidy this makes internet free at our house. When the subsidy goes away it will be $30. No contract requirements.

I probably spent an hour total signing up for both programs, from home, so I think I have already saved enough to make it worth it.

Xfinity mobile phones are cheap too, especially if you limit your data use.

Scott 2
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Re: Subsidized Internet - $30 off per month

Post by Scott 2 »

I'm glad you found value in the program. Where the ISP got me, was when it came time for the promotional period to end. My cheapest option, without terminating service, was a contracted higher tier - at $40/month. So $10/month after the subsidy. My ACP year wasn't aligned with my promotional year, and I didn't want to risk the subsidy. Now I'm locked in!

Until the ACP, I'd just rotate the service contract with my wife. We own the modem. It was very low hassle. Often there would be zero disruption, even if we intentionally left a gap between the two contract years.

But you know - I'd rather do business without all these games, or paying 100% more than my neighbor. I'm happy with 480p streaming. If I want to download a large game, I can take my device to the library. If my home internet goes down for a week, maybe because I hit my data cap, it'd be good for me.

An unlimited cell plan is dangerously close to supporting my household. This is the provider I'm currently watching:

https://www.visible.com/

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