Internet providers will soon be required to offer plans as low as $15 per month to low-income New York residents.
The law was passed as part of New York’s 2021 budget, but a group of telecommunications industry groups quickly sued, arguing that it conflicted with federal regulations on internet service. In April, a federal appeals court disagreed, ruling that the state could now mandate low-income plans.
“We are disappointed by the Court’s decision and New York’s move to regulate rates in a competitive industry, which will not only undermine needed investment in our nation’s infrastructure but could jeopardize the sustainability of broadband services in many areas,” the industry group said in a statement.
The industry groups also said they “urge Congress to maintain assistance for low-income Americans across the country,” which they said would largely eliminate the need for states to step in like New York did.
The comments were made by the federal government Affordable Connectivity ProgramThe New York State Consumer Protection Program provides low-income families with $30 to $75 a month to get internet access. About 1.8 million New York households rely on the subsidy, more than any other state except California.
The $14 billion program officially ran out of funds in May, leaving millions of users to seek alternatives. Despite bipartisan support for continuing the ACP, no action has been taken on an extension bill introduced in the Senate in January.
What will you need in New York?
New York’s Affordable Broadband Act requires internet providers to offer broadband service to low-income households for $15 per month (all taxes and fees included). When the law was passed, broadband was defined as a 25 Mbps download speed and a 3 Mbps upload speed, but the Federal Communications Commission has since raised the standards to 100/20 Mbps. The law also caps 200 Mbps download plans at $20 per month.
You may qualify for a low-income plan if you participate in any of the following programs:
- Free or reduced-price lunches through the National School Lunch Program
- Supplemental Nutrition Assistance Program
- Medicaid
- Exemption from rent increases for seniors
- Exemption from rent increases for people with disabilities
- Affordable benefits from utilities
New York state’s NSLP income requirements are 185% of the federal poverty guidelines, or up to $55,500 for a family of four, slightly stricter than the 200% required by ACP but lower than the 135% required by Lifeline, another federal subsidy that provides $9.25 a month for home internet.
What does the future hold for low-income New Yorkers?
Qualifying Spectrum customers can get affordable internet for $25 a month through Spectrum Internet Assist, but it may not be long before New York residents can get cheaper service.
Just recently, New York State Governor Kathy Hockle’s office issued a press release announcing the completion of a settlement between the New York State Public Commission and Charter Communications, Inc. The settlement requires Spectrum to offer home internet with download speeds of 50 megabits per second for low-income households starting at $15 per month. Additionally, the settlement requires Spectrum to offer this plan for a fixed price for four years.
Spectrum serves 58 of the state’s 62 counties. “Broadband is essential to fostering economic growth and opportunity for all our residents, and we will continue our efforts to provide broadband access across our state,” Governor Hockle said in a statement.
If you receive SSI benefits or participate in the NSLP, you may be eligible for this discount.
In 2016, PCS and Charter signed a contract that required Spectrum to offer low-cost home internet with download speeds of 30 Mbps for $15 a month. But Spectrum violated the contract by raising the price without authorization to $25 a month for 50 Mbps. Charter denies the allegations.
What low-income plans are currently available in New York?
It’s unclear at this time when New York’s low-income internet law or Spectrum’s discounted rates will go into effect, but consumers have several other options immediately available to them, including government subsidies and low-income plans from New York state internet providers.
- Surprising the Internet First: This cable provider offers two plans through its Internet First program, with download speeds of 50Mbps for $10/month and 150Mbps for $20/month. The service requires no contract and comes with free equipment. New customers get three months of free internet.
- Big Apple Connect: Residents living in New York City Housing Authority buildings are eligible to receive free internet, equipment and basic cable TV through this program.
- LifelineIt’s a permanently funded federal program that provides eligible subscribers with $9.25 a month for phone or internet service, and up to $34.25 for those who live on tribal lands. You can qualify if your household income is at or below 135% of the federal poverty guidelines or if you participate in programs like SNAP, Medicaid, or Supplemental Security Income.
- Optimal Advantage: Plans cost $15 per month, offer download speeds up to 50Mbps, and include a Wi-Fi router. You’re eligible for a discount if you participate in the NSLP or if someone in your family attends a New York City public school. Veterans and SSI-eligible seniors receiving state or federal assistance are also eligible for discounts.
- Spectrum Internet Assist: This Spectrum plan gives you 50 Mbps download speeds for $25 per month, which isn’t much different than the 100 Mbps plan available at some addresses for $30. Plus, you get a Wi-Fi router for an extra $5 per month. To qualify, you must be participating in the NSLP, the Community Eligibility Provision of the NSLP, or Supplemental Security Income (applicants age 65 and older only).
- Starry Connect:The plan offers 30 Mbps symmetrical speeds for $15 per month, no data caps, and a router included with the service. However, Starry Connect is only available in certain public and affordable housing units 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, meaning they have a Verizon home internet plan. Prices start at $20 per month, but you may need to bundle service with a cell phone plan. You’re eligible if you received a federal Pell Grant within the year before applying. You can also enroll if you qualify for Lifeline, Medicaid, or the Special Supplemental Nutrition Program for Women, Infants, and Children (income at or below 185% of the federal poverty level).
