New York Requires Internet Providers to Offer $15 or $20 Plans to Low-Income Residents

A New York law went into effect this month that requires big internet providers to offer $15 or $20 internet service to low-income households throughout the state.

The legislation may make internet access affordable to people in need, and that’s a big deal: Cost is one of the biggest barriers to internet access nationwide. But will the rate regulations stop internet companies from building modern infrastructure in the state?

We’ll get into how we got here, what’s happening on the ground in New York, and how low-income households can qualify for the new plans.

New York’s Affordable Broadband Act (ABA): The Saga

Back in 2021, the New York State Assembly passed a law that mandated these cheap internet plans for low-income residents. A consortium of internet providers challenged the law in the district court and won. Next, the state challenged the ruling in an appellate court, and the law was upheld in April 2024.

On Dec. 16, 2024, the U.S. Supreme Court declined to hear the case, meaning the law would stand.

On Jan. 9, New York Public Service Commission Chair Rory M. Christian released an order saying the law would take effect on Jan. 15, 2025. The ruling included a list of providers already excluded from enforcement and said other providers had until Jan. 15 to request exemptions.

Two days later, the petitioners asked for a new hearing based on AT&T’s decision to pull out of the state, but the court has yet to respond.

What the law requires

The law outlines conditions for two price tiers based on speed. For plans with download speeds up to 25Mbps, the monthly maximum cost internet providers are allowed to charge low-income residents is $15 per month. That will apply to DSL and some satellite and fixed wireless internet providers. Dial-up internet providers are excluded automatically (and are exceedingly rare).

For plans with download speeds up to 200Mbps, the max monthly cost for low-income residents is $20. That applies mostly to cable and fiber internet providers.

Both tiers require that taxes, fees, equipment rental fees, and usage fees be included in the monthly price.

According to the federal broadband map published by the Federal Communications Commission (FCC), 100% of areas in New York have access to download speeds of at least 25Mbps, and 95.65% have access to speeds of at least 250Mbps.

What internet providers are doing

Some internet providers already offer qualifying plans to low-income New Yorkers, or at least plans that come close to qualifying.

Plans and prices can vary based on available technology and exact addresses, but here’s what we’ve found so far:

• Verizon offers the Verizon Forward bill credit of up to $30 per month, meaning low-income residents may be able to get a Fios 300 Mbps fiber plan for $20 per month.
• Spectrum quietly started offering its 50Mbps Spectrum Internet Assist plan for $15 per month, with an optional $5 upgrade for speeds up to 100Mbps, according to reporting by The Daily Catch. In other states, that plan costs $25 and $30 per month, respectively.
• Starry offers the Starry Connect plan for $15 per month, with speeds up to 30Mbps.
• Optimum offers the Internet Advantage plan for $14.99 per month, with speeds up to 100Mbps.
• Astound Broadband offers a $20 plan with speeds up to 300Mbps.
• Xfinity offers Internet Essentials for $9.95 per month, with speeds up to 50Mbps.

What you can get depends on where you live.

Internet providers with fewer than 200,000 customers can apply for exemptions, and many already have. Starlink, for example, applied for an exemption, according to reporting by PCMag.

Meanwhile, AT&T will stop offering its Internet Air 5G home internet service in the state because of the law, starting March 1. Customers will get free service starting Jan 15 so they have time to find another provider. AT&T doesn’t offer fiber internet in New York.

Who qualifies for the low prices?

Qualifying for the ABA is similar to qualifying for other government aid programs like Lifeline or the Affordable Connectivity Program (ACP), which ran out of funding in 2024. In specific, New Yorkers with low incomes have to prove they have incomes below 185% of the federal poverty guidelines or are eligible for one of the following:

• Free or reduced-price school lunch
• Supplemental Nutrition Assistance Program (SNAP) benefits
• Medicaid
• Senior citizen rent increase exemption
• Disability rent increase exemption
• An affordability benefit from a utility company

About 1.7 million New York households had been receiving help from the ACP before it ran out of funds, so a similar number will likely qualify for the ABA.

What internet provider organizations are saying

Internet providers believe the price controls will hurt their businesses and say they could slow infrastructure investment.

The Rural Broadband Association with the NTCA released a statement about the Supreme Court’s denial to hear the case.

“Today’s decision leaves in place harmful rate regulations that will undermine the effective delivery of broadband services and discourage investment in broadband networks, particularly in unserved and underserved areas,” the statement reads. “We will continue to advocate for policies that support and sustain broadband access and protect the competitive marketplace that benefits all Americans.”

Earlier, a coalition of broadband groups released a statement about the court of appeals decision that allowed the New York ABA to stand:

“We are disappointed by the court’s decision and New York state’s move for rate regulation in competitive industries,” it reads. “It not only discourages the needed investment in our nation’s infrastructure, but also potentially risks the sustainability of broadband operations in many areas. We urge Congress to maintain support for low-income Americans on a nationwide basis.”

That “maintain support” line refers to the Affordable Connectivity Program, which amounted to a $30 credit on internet bills for low-income households nationwide. The funds were paid directly to internet providers from public coffers.

My take: Considering public investment, rate regulation is justified

The statements decrying price controls come despite the fact that federal and state taxpayers have given providers millions of dollars toward building out their infrastructure in New York in recent years.

In 2015, state lawmakers established a $500 million New NY Broadband program that gave internet providers funding to build out infrastructure in the state. Then, in 2021, the U.S. Congress enacted the BEAD program, which awarded New York internet providers nearly $665 million for internet infrastructure projects.

The providers themselves have contributed billions more toward building out the infrastructure, and some providers have accepted more public money than others.

But even with those differences and the massive expenditures by the providers themselves, isn’t it a little disingenuous to take public money with one hand while fighting price controls with the other?

I get that it’s complicated. Providers have to balance infrastructure growth with revenue. But I also think internet access is a necessity for modern life, and public officials have a responsibility to ensure the needs of their constituents are met. Furthermore, most families can only choose from one or two providers. That mean’s there’s no real competition, so no way for market forces to play out in the public’s favor. In situations like these, rate regulations are justified.

With the appeals court ruling and the decision by the Supreme Court to let it stand, we could see price control legislation in other states (but it’s not likely at the federal level). We’ll keep you updated as state legislatures and general assemblies meet throughout 2025.