What Is Considered Income for the ACP Program?

The Affordable Connectivity Program (ACP) was a federal initiative designed to assist eligible households with the cost of internet service. This program aimed to ensure more individuals had access to essential broadband connections for various daily needs. The ACP stopped accepting new applications and enrollments on February 7, 2024, with its last fully funded month being April 2024. This article details how income was defined for eligibility during the program’s operational period.

Countable Income for Eligibility

For households to qualify for the ACP based on income, various types of financial receipts were considered. These generally represented gross amounts before deductions. Wages, salaries, tips, and commissions from employment were included. Net earnings from self-employment activities also contributed to countable income.

Government benefits such as Social Security (including SSDI, SSI, and survivors’ benefits), retirement and pension payments, and unemployment compensation were counted. Regular payments like alimony and child support were also factored into a household’s total income.

Other forms of income included interest and dividend income from investments, rental income, and benefits from workers’ compensation and other disability programs. Any other consistent, regular payments or benefits received by household members contributed to the total countable income.

Income Not Included

Certain types of income were excluded from the household income calculation for ACP eligibility. These included student financial aid (such as grants, scholarships, and Pell Grants), especially if not designated for living expenses. Foster care payments were also typically excluded.

Lump-sum payments, like inheritances, life insurance proceeds, or tax refunds, were generally not included if they were one-time events. Specific governmental assistance payments, such as certain disaster relief funds or tribal payments, were also disregarded. Reimbursements for expenses incurred by household members were another common exclusion.

Household Income Determination

Determining eligibility for the ACP based on income involved aggregating the financial resources of all members within a defined household. A “household” typically consisted of people living together who shared income and expenses, regardless of relation.

This combined household income was then compared against the Federal Poverty Guidelines (FPG) for the corresponding household size. To qualify, a household’s income needed to be at or below 200% of the FPG. For instance, in 2024, 200% of the FPG for a family of four was $62,400. Eligibility was primarily assessed based on the previous year’s gross income, though current income might be considered if a significant change in financial circumstances had occurred.

Qualifying Through Other Programs

Households could also qualify for the ACP if a member participated in certain federal assistance programs, bypassing the need for a detailed income calculation. These programs included:

• Supplemental Nutrition Assistance Program (SNAP)
• Medicaid
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)
• Veterans Pension and Survivors Benefit programs
• Lifeline program

For households on tribal lands, specific tribal programs also conferred eligibility. These included Bureau of Indian Affairs General Assistance, Tribal Temporary Assistance for Needy Families (TANF), and Food Distribution Program on Indian Reservations.

Providing Income Documentation

Applicants verifying eligibility through income-based criteria needed to provide specific documentation. Common forms of income verification included:

• Prior year’s state, federal, or tribal tax returns
• Current income statements from an employer or recent paycheck stubs
• Social Security statements of benefits
• Veterans Administration statements of benefits
• Unemployment or worker’s compensation statements
• Official documents like divorce decrees or child support awards

It was important that all submitted documents were clear, legible, and current to facilitate the verification process.