New York Enforces $15 Monthly Internet Plans Amidst Subsidy Expiration

internet affordability, New York State will soon compel internet service providers to offer low-income @ $15 monthlyPhoto bygraphic art by miss knockout

Research Source: Ars Technica

In a significant move aimed at safeguarding internet affordability, New York State will soon compel internet service providers to offer low-income residents broadband plans at rates as low as $15 per month. This decision comes at a crucial time as federal broadband subsidies, crucial to millions, begin to dry up.

The mandate originated from the state budget passed in 2021, but faced immediate legal challenges from telecom industry groups. These groups contended that the state’s requirements conflicted with federal internet service regulations. However, their efforts were thwarted last week when a federal appeals court ruled against their arguments, thereby upholding New York’s right to enforce these affordable plans.

The introduction of this mandate is seen as a critical step in ensuring continued internet access following the depletion of the federal Affordable Connectivity Program (ACP), which had been providing monthly subsidies of $30 to $75 to help low-income families afford internet services. New York, with nearly 1.8 million households depending on this subsidy—second only to California—felt the impending cessation of the ACP acutely.

With the ACP’s $14 billion fund officially exhausted this month, the lack of Congressional action to extend these crucial supports has left millions searching for alternatives. Despite a proposed extension of the ACP having bipartisan backing, it has languished in the Senate since January with no progress.

Industry representatives have expressed their disappointment over the court's decision and New York’s proactive steps in rate regulation, claiming it “discourages needed investment in our nation’s infrastructure and potentially risks the sustainability of broadband operations in many areas.” They continue to urge Congress to maintain support for America’s low-income families on a national scale, arguing that federal action would negate the need for state interventions like New York's.

This legislative action by New York highlights the ongoing debates surrounding internet accessibility and the role of government in regulating essential services. As the situation develops, New Yorkers on the brink of losing affordable internet access may find some relief in this new state-level provision, ensuring that connectivity, increasingly seen as a necessity, remains within reach for those at the economic margins.