The Community Access Program helps 96 libraries in the province provide free internet access to members of the public.
The Newfoundland and Labrador Library Association said the cut will hurt those who need the free service the most.
“The NLLA is concerned that without CAP funding, people in rural and remote areas of the province, low-income earners, and seniors may not have equitable access to internet services,” the organization said in a statement.
The federal government has argued that CAP is no longer needed because most Canadians now have ready internet access.
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