In a divided decision, a federal appeals court in Manhattan revived New York’s 2021 law designed to provide affordable high-speed internet to low-income families. The ruling overturned a permanent injunction and marked a setback for service providers.
The 2nd U.S. Circuit Court of Appeals voted 2-1 in favor of reinstating the law, asserting that federal telecommunications regulations did not preempt state authority to regulate broadband rates.
Judge Alison Nathan highlighted that unless specifically stated, Congress intended for states to retain regulatory power over many interstate communication services.
The court emphasized that a 2018 Federal Communications Commission order, which categorized broadband as an information service, stripped the FCC of its authority to regulate rates.
New York’s pioneering law mandated broadband providers to offer plans starting at $15 per month, benefiting millions of households amidst the pandemic-driven shift to remote work and learning. However, U.S. District Judge Denis Hurley had previously blocked the law’s enforcement.
Challenging the law were industry groups such as CTIA-The Wireless Association, representing major internet providers like AT&T and Verizon.
In response to the court’s decision, these groups expressed concerns about potential impacts on infrastructure investment and broadband operations nationwide.
New York Attorney General Letitia James’s office defended the law, though it refrained from immediate comment following the court’s ruling.
This decision reflects ongoing tensions between state and federal jurisdictions in regulating telecommunications services, particularly concerning affordability and accessibility for underserved communities.
