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Internet providers will soon be required to offer plans to low-income residents in New York state for as low as $15 per month.
The law was passed as part of the New York state budget in 2021 but was quickly challenged in a lawsuit filed by a collection of telecom industry groups arguing that it conflicted with federal regulations on internet service. In April, a federal appeals court ruled that it disagreed with their argument and would allow the state to require low-income plans going forward.
"We are disappointed by the court's decision and New York state's move for rate regulation in competitive industries. It not only discourages the needed investment in our nation's infrastructure but also potentially risks the sustainability of broadband operations in many areas," the industry groups said in a statement.
The industry groups also said they “urge Congress to maintain support for low-income Americans on a nationwide basis,” which would largely eliminate the need for states to step in as New York did.
This comment refers to the federal Affordable Connectivity Program, which provided $30 to $75 monthly to help low-income households afford internet. Nearly 1.8 million households in New York relied on the subsidy -- more than any state except California.
The $14 billion program officially ran out of funds in May, leaving millions of users scrambling to find alternatives. Despite bipartisan support for continuing the ACP, no action has been taken on an extension act introduced to the Senate in January.
What will be required in New York?
New York’s Affordable Broadband Act requires internet providers to offer broadband service to low-income households for $15 a month -- all taxes and fees included. At the time the law was passed, the definition of broadband was 25Mbps download and 3Mbps upload, but the Federal Communications Commission has since raised the bar to 100/20Mbps. The law also limits plans of 200Mbps download speeds to $20 monthly.
You can qualify for the low-income plans if you participate in any of the following programs:
- Free or reduced-priced lunch through the National School Lunch Program
- Supplemental Nutrition Assistance Program
- Medicaid
- Senior citizen rent increase exemption
- Disability rent increase exemption
- Affordability benefit from a utility
The income requirements for the NSLP in New York are up to 185% of federal poverty guidelines or $55,500 for a family of four. That’s slightly more restrictive than the 200% required by the ACP but less than the 135% required by Lifeline, another federal subsidy that provides $9.25 per month for home internet.
What's next for low-income residents in New York?
For eligible Spectrum customers, affordable internet is available through Spectrum Internet Assist for $25 per month. However, it might not be that long until New York residents can access its services for cheaper.
Just recently, New York State Governor Kathy Hochul's office published a press release announcing a settlement between the New York State Public Commission and Charter Communications, Inc. requiring Spectrum to offer home internet to low-income households starting at $15 per month for download speeds of 50 megabits per second. Moreover, this settlement will require Spectrum to offer this plan at a fixed rate for four years.
Spectrum operates in 58 out of 62 counties in the state. "Broadband is crucial to driving economic growth and opportunity for all our citizens, and we will continue our efforts to provide broadband access across the state," Governor Hochul said in a statement.
Those that receive SSI benefits or participate in the NSLP may be eligible for this discount.
Back in 2016, the PCS and Charter had an agreement that required Spectrum to offer low-cost home internet for $15 per month for download speeds of 30Mbps. However, Spectrum violated this agreement by raising the price to $25 per month for 50Mbps without approval. Charter has denied these allegations.
What low-income plans can you get in New York right now?
It’s not immediately clear when New York’s low-income internet law or Spectrum's discounted rate will take effect, but consumers can take advantage of several other options immediately, including government subsidies and low-income plans from internet providers in New York:
- Astound Internet First: Offering two plans through its Internet First program, this cable provider features download speeds of 50Mbps for $10 per month and 150Mbps for $20 per month. Service comes with no contracts and equipment is included at no cost. Three months of free internet are available for new customers.
- Big Apple Connect: Residents living in a New York City Housing Authority building are eligible to receive free internet, equipment and basic cable TV through this program.
- Lifeline: This is a permanently funded federal program that provides $9.25 per month toward phone or internet services for eligible subscribers, or up to $34.25 for those living on tribal lands. You can qualify if your household income is at or below 135% of federal poverty guidelines, or if you participate in a program like SNAP, Medicaid or Supplemental Security Income.
- Optimum Advantage: Plans cost $15 per month for download speeds up to 50Mbps and include a Wi-Fi router. You can qualify if you participate in the NSLP or if anyone in your household attends a New York City public school. Veterans who receive state or federal assistance and seniors eligible for SSI can also get the discount.
- Spectrum Internet Assist: This Spectrum plan gets you 50Mbps download speeds for $25 a month -- not much less than the 100Mbps plan for $30 available at some addresses -- with a Wi-Fi router available for an extra $5 monthly. To qualify, you’ll need to participate in the NSLP, the Community Eligibility Provision of the NSLP or Supplemental Security Income (for applicants age 65 years and older only).
- Starry Connect:This plan offers symmetrical speeds of 30Mbps for $15 per month. There are no data caps, and the router is included with your service. However, Starry Connect is only available to certain public and affordable housing properties in New York City and may not be widely available.
- Verizon Forward: Verizon’s low-income plans are available to Fios, 5G Home and LTE Home customers -- in other words, any Verizon home internet plan. Prices start at $20 per month but may require bundling service with a cellphone plan. You are eligible if you received a Federal Pell Grant within a year prior to application. You can also sign up if you’ve qualified for Lifeline, Medicaid or Special Supplemental Nutrition Program for Women, Infants, and Children (income is at or below 185% of the federal poverty level).