New York’s Broadband Law Sets a New Benchmark for Access

In 2021, New York passed the Affordable Broadband Act (ABA), requiring internet providers to offer high-speed broadband to lower-income households for as little as $15 per month. After years of legal battles, including challenges that reached the Supreme Court, the law is finally being enforced as of January 15, and the timing couldn't be more critical. With key federal programs like the Digital Equity Act and the Broadband Equity, Access, and Deployment (BEAD) program facing an uncertain future, the nation’s efforts to close the digital divide risk stalling at a pivotal moment.

Meanwhile, upcoming court decisions on the constitutionality of the Universal Service Fund, which helps ensure universal access to telecommunications service, could reshape the level and type of support available by the federal government. In the near term, some in Congress have sought to use the Congressional Review Act to kill the last remaining federal program that funds internet access to students at home.

As federal funding and policies remain in flux, state-driven solutions like the ABA are key in ensuring broadband remains within reach for the 18 million lower-income households that remain unconnected due to the high monthly costs. And the best part? It helps consumers in need while minimally impacting the bottom line of internet service providers; a recent report by CalAdvocates found that a $15 low-income broadband requirement would potentially reduce the combined revenues of AT&T, Comcast, Cox, and Charter/Spectrum by less than one percent.

COVID-19 highlighted the dire state of connectivity, as school closures and transitions to remote work exacerbated disparities in access to reliable internet. Prior to the pandemic, 32% of Americans without broadband at home pointed to cost as the main barrier to access. At the time, programs like the federal Affordable Connectivity Program (ACP) were quickly implemented to address financial barriers by subsidizing lower-income households' monthly internet, with many opting for various "free with ACP" plans. In tandem, efforts such as the Emergency Connectivity Fund, alongside state and school district-specific initiatives, provided students and teachers with Wi-Fi hotspots and devices. While these measures temporarily closed gaps, funding has dried up and priorities have shifted, leaving many struggling to stay connected.

The lapse of the ACP points to a larger issue: the persistent failure to establish long-term broadband affordability mechanisms, despite overwhelming evidence of their economic and social benefits. A new study by the Brattle Group found that the ACP not only kept millions of families online but also delivered economic benefits far exceeding the cost of the program. Increased broadband adoption through the program resulted in an estimated $28.9 to $29.5 billion per year in health care savings by expanding telehealth access, more than quadruple the program's $7.3 billion annual cost.

The study also found that the ACP would generate a combined $3.7 billion increase in annual earnings for students participating in the program, and up to $4.3 billion in aggregate wage gains driven by increased workforce participation and improved job accessibility for underserved populations. With over 5 million households disconnected, the end of the ACP underscores that affordability remains a persistent challenge, one that infrastructure expansion alone won’t solve.

The expiration of the ACP last year left millions of families scrambling to find affordable internet alternatives. In New York alone, nearly 1.8 million households relied on the ACP to stay connected. Research shows that providing subsidies to families for internet service reduces the overall cost of deployment, incentivizing providers to build networks in high-cost, rural areas. Industry, however, has pushed back on BEAD program requirements designed to ensure newly connected households can actually afford service to their home. But these networks are being built with public dollars — taxpayer-funded infrastructure that should be accessible to the very people who helped pay for it.

If programs like the ACP had continued alongside BEAD-funded network affordability requirements, many low-income households could have effectively received high-speed internet at no cost. Unfortunately, with the recent announcement by Commerce Secretary Lutnick pausing the program to identify efficiencies and remove "burdensome regulations" and scrutiny from lawmakers, it's unlikely that many states will be required to prioritize affordability as the BEAD program is implemented.

Moreover, the recent ruling by the Sixth Circuit Court of Appeals in Ohio Telecom Association v. FCC limits the federal government's ability to regulate internet service providers as Title II providers under the Communications Act of 1934. This means that, absent federal legislative action, states have space to consider policies to support consumers of broadband internet providers. The ABA bridges this void, ensuring that all New Yorkers, especially those most in need, can access affordable internet.

Under the law, major ISPs (serving 20,000 households or more) must provide qualifying households with access to broadband services at either $15 per month for 25 Mbps or $20 per month for 200 Mbps—cutting the cost of internet access for lower-income households by more than half. Eligibility for these low-cost plans includes households with an annual income up to 185% of the federal poverty level – a maximum of $59,477.50 for a family of four under 2025 guidelines – or those who qualify for programs such as the National School Lunch Program, Medicaid, SNAP, and others. These rates include taxes and equipment fees, and price increases are capped at 2% annually, making it easier for families to budget their monthly expenses.

The ABA's impact will be transformative for lower-income households and anchor institutions that will be enabled to better reach and provide services to their communities. Those who previously relied solely on cellular data, pushing them toward social media and limiting access to more enriching opportunities, will now be able to engage more fully with high-quality online experiences.

Affordable, high-speed internet service ensures children can participate in online learning without disruptions, leading to greater academic achievement and higher lifetime earnings. It makes telehealth services more accessible, reducing the need for costly and time-consuming in-person visits. Job seekers gain opportunities to apply online, attend virtual interviews, and upskill through remote training programs. Additionally, by saving on broadband costs, families can allocate their limited resources to other essentials like child care, rent, groceries, medications, and transportation. With higher speeds, multiple household members can connect simultaneously, engaging in bandwidth-intensive activities like streaming, video conferencing, and real-time tutoring without compromise.

New York Assemblymembers Amy Paulin and Steve Otis’ Affordable Broadband Act (ABA) sets an example that other states like Vermont (HB121) and Minnesota (SF3095) are already beginning to follow, with varying degrees of similarity. For example, California's AB353, introduced by Assemblymember Boerner, requires all ISPs, regardless of size, to offer low-cost plans. Massachusetts' SD1200, sponsored by State Senator Payano, and Maryland’s HB1553, sponsored by Delegate Fair, expand eligibility to households earning up to 200% of the federal poverty line and raise minimum broadband speeds to match the FCC's definition (100/20 Mbps). Meanwhile, Connecticut's SB514 limits its requirements to ISPs contracting with the state. Other states, like Mississippi, are taking different approaches to ensure lower-income households can access affordable internet. HB217 establishes a low-cost broadband program mirroring the now-defunct ACP by using unspent COVID-era relief funds.

Nobody wants to build a bridge to nowhere—new broadband infrastructure and investments in innovative technology like generative AI alone won't solve the digital divide if families can't afford to use it. Without reliable, low-cost service, millions will remain disconnected, reinforcing disparities in economics, health, and education. As the federal landscape for broadband affordability remains uncertain, state-level action is essential to ensure that cost is no longer a barrier to digital access. Policymakers must recognize that access to affordable, high-speed internet is foundational to economic and social progress and look to New York as a shining example of how to ensure no one is left behind in the digital age.