New York State Department of Public Service

01/23/2025 | Press release | Distributed by Public on 01/23/2025 13:56

Governor Hochul Announces Major Digital Access Initiatives With Launch of Affordable Broadband Act and $18.5 Million ConnectALL Investment

Governor Kathy Hochul today announced two major initiatives to expand digital access across New York State. The first initiative - Affordable Broadband Act (ABA) - has officially taken effect, making New York State the first state in the nation to require internet service providers to offer qualifying low-income households broadband service at $15 per month for 25 Mbps service or $20 for 200 Mbps service. Second, the State is also launching its $15.5 million Digital Equity Program Capacity Grant to provide two-year grants supporting digital literacy training, device access and support services for underserved communities. Additionally, to maximize the impact of this law and alongside its $15.5 million Request for Applications, ConnectALL will invest $3 million to publicize the ABA benefit to eligible households, support them in signing up for the low-cost accessibility option, and help them connect to education programs and affordable devices, while the Public Service Commission works to ensure all internet service providers fully comply with the law.

"Digital connectivity isn't a luxury - it's a fundamental right that opens doors to economic mobility and opportunity," Governor Hochul said. "With the Affordable Broadband Act and this $15.5 million investment in our ConnectALL initiative, we're taking bold steps to bridge the digital divide creating affordable, accessible and equitable internet for all New Yorkers. These efforts will ensure that families and businesses across New York have the tools they need to thrive in today's digital world, while empowering local communities to create innovative solutions for long-term digital equity."

Empire State Development President, CEO and Commissioner Hope Knight said, "Digital access and literacy are the gateway to economic mobility in today's economy. This combined approach of affordable broadband access and digital inclusion resourcing will empower local organizations to develop innovative solutions that break down barriers. Through ConnectALL, we're creating a digital ecosystem where every community can fully participate in our state's economic growth and prosperity.

New York State Public Service Commission Chair Rory M. Christian said, "Broadband is as vital a resource as running water and electricity to New York's communities. This law is crucial in fostering economic equity, supporting educational opportunities and promoting public health, especially as more essential services, including remote education and health care, are increasingly moving online."

State Senator Kristen Gonzalez said, "As Chair of the Internet and Technology Committee, I'm proud to see this investment in affordable broadband across our state. This brings us a step closer to securing the right to internet access for all New Yorkers. I commend Governor Hochul for her leadership on this vital issue, and support continued efforts to increase broadband speeds and further expand tech access in our state."

Assemblymember Steve Otis said, "Congratulations to Governor Hochul and the team at ESD's ConnectALL office on the launch of this Digital Equity Grant opportunity to support local programs that deliver digital training, device access and support services to those left out of today's digital world. These grants will allow local providers of these programs to expand their work and bring more individuals across the digital divide. These programs have been a priority for the State Legislature and digital inclusion practitioners for several years. The grants are the next step in the implementation of ConnectAll's highly regarded Digital Equity Plan.

First-in-the-Nation Affordable Broadband Act Guarantees $15 Broadband Access Statewide

The Affordable Broadband Act, enacted in 2021, recently cleared final legal hurdles when the United States Supreme Court denied further review of the law in December 2024, allowing implementation to proceed. The ABA requires internet providers serving over 20,000 customers to offer reduced-cost plans to qualifying households. The Public Service Commission (PSC) has reinstated temporary exemptions for small ISPs with fewer than 20,000 customers and will review new requests for exemptions based on economic hardship.

Under the ABA, qualifying New York households can access high-speed internet at two price points:

  • $15 per month for speeds of at least 25 megabits per second
  • $20 per month for high-speed service of at least 200 megabits per second

These discounted rates are permanent, though providers may adjust prices once every five years. Any price increase must be announced 30 days in advance to customers and regulators, and are limited to the lesser of either the most recent consumer price index change or a maximum of two percent per year.

New Yorkers can qualify for these low-income broadband plans if they 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

ConnectALL's commitment to public awareness and enrollment supports its adoption. As a first step in the implementation process, the Public Service Commission has restarted a process, which had been stayed by court order, to implement the ABA law, and its staff will review requests for exemptions from small ISPs that have fewer than 20,000 customers and can show economic hardship. Today, the PSC reinstated temporary exemptions previously provided to small ISPs that requested such relief in May 2021. With the resolution of the litigation, providers with more than 20,000 customers will need to comply with the ABA's directives.

ConnectALL Digital Equity Program Capacity Grant: Applications Now Open

Empire State Development's ConnectALL Office is accepting applications for the $15.5 million Digital Equity Program Capacity Grant. This competitive initiative will provide two-year grants to organizations and partnerships working to bridge the digital divide through high-quality digital literacy training, device access programs, digital privacy skills development and inclusive support services.

The RFA is funded through the National Telecommunications and Information Administration's State Digital Equity Capacity Grant Program and aligns with New York State's Digital Equity Plan. The funding follows NTIA's approval of New York State's Digital Equity Capacity Grant Application in October 2024, which secured nearly $36.9 million in federal funding. ConnectALL aims to double the capacity of New York State's digital equity ecosystem by 2035. Apply for the Digital Equity Program Capacity Grant on Broadband's website.

Proposals must be submitted by 11:59 PM ET on Monday, March 24 2025. To help organizations prepare their applications, ConnectALL will host an informational webinar on January 30, 2024. The complete RFA and webinar registration information are available at broadband.ny.gov.

Governor Hochul's ConnectALL Initiative

Governor Hochul has made expanding broadband access a cornerstone of her administration's efforts to create a more equitable New York. Through the ConnectALL initiative, New York State is investing $1 billion to transform the State's digital infrastructure, enhance competition among providers and ensure that every New Yorker has access to reliable, affordable high-speed internet. To date, ConnectALL has overseen the successful launch and implementation of several programs to advance broadband access, including:

  • The Digital Equity Program will invest $50 million, including a federal allocation of at least $37 million to implement the New York State Digital Equity Plan to close the digital divide. The Plan outlines New York's statewide strategy to increase its capacity to improve digital literacy and digital job readiness skills, facilitate access to affordable internet and devices, enhance digital privacy and safety, and make government services more accessible through the internet.
  • The Affordable Housing Connectivity Program is investing $100 million to bring new broadband infrastructure to serve low income households in affordable and public housing. The Program has so far awarded over $13 million and secured broadband service at $10 per month for over 14,000 homes in Bronx, Erie, Monroe and New York counties. The program is currently accepting applications from internet service providers and requests to participate from housing owners and public housing authorities.
  • The ConnectALL Deployment Program will fund internet service providers to reach unserved and underserved locations. ConnectALL released the program'sRequest for Applications for about $664 million in December 2024, drawing on federal funding from the Broadband Equity, Access, and Deployment Program, as described in the ConnectALLBroadband Deployment Initial Proposal.
  • TheMunicipal Infrastructure Program has awarded over $214 million for the construction of publicly-owned broadband infrastructure and delivery of affordable broadband service across the State. The program, primarily funded by the U.S. Department of the Treasury under the American Rescue Plan's Capital Projects fund, facilitates a variety of models of municipal broadband, public-private partnerships, and open access networks to provide New Yorkers with affordable, high-quality service options. The BetaConnectALL Projects Dashboard provides details on projects funded by the Municipal Infrastructure Program.