New York state will receive $100 million in federal funding from the U.S. Department of Treasury through the American Rescue Plan to expand high-speed internet.
Access to internet broadband has been a problem in some areas of the North Country.
Officials said it is the largest targeted investment in affordable housing connectivity in the nation. New York estimates this funding will allow them to connect 100,000 homes and families to affordable, high-speed internet across the state.
“Affordable, reliable broadband access is essential to connect New Yorkers with work, education, and government services, but still out of reach for far too many families,” Gov. Kathy Hochul said. “This critical funding to unlock high-speed internet for thousands of New York renters will build on the success of our ConnectALL broadband initiative while supporting the goals our five-year plan to build and preserve more affordable housing.”
U.S. Sen. Majority Leader Charles Schumer said, “$100 Million in federal funding that I secured in the American Rescue Plan is now on its way to boost high quality internet access for over 100,000 families and homes across New York. Long before the pandemic, communities across Upstate New York, from rural communities to bustling city neighborhoods, have struggled to obtain affordable, high-speed internet service.
“These federal dollars will go directly towards closing the digital divide, which means connecting communities to good-paying jobs, better healthcare, and higher-quality education in our schools. I am proud to deliver this major $100 million investment to provide more equitable broadband accessibility throughout the state and help New Yorkers thrive in today’s digital economy.”
“During the pandemic, we saw how important high-quality broadband is for business, health care, school, and more,” said U.S. Sen. Kirsten Gillibrand. “That’s why, when we wrote the American Rescue Plan, we included robust funding for broadband delivery, which can create new economic opportunities, raise property values and improve people’s life and health outcomes.”
The new federal investment comes from the $10 billion in the American Rescue Plan’s Capital Projects Fund (CPF), a program designed to address the challenges exacerbated by the COVID-19 pandemic, particularly in rural America, Tribal communities, and low- and moderate-income communities.
A key priority of the CPF is to make funding available to help ensure that all communities have access to high-quality modern infrastructure, including reliable, affordable high-speed broadband needed to access critical services. New York’s Affordable Housing Connectivity Program is a competitive grant program designed to fund high-speed, reliable broadband infrastructure to and within low-income housing buildings.
Officials said CPF funds will be used to upgrade internet access in affordable housing units. The plan represents 29 percent of the state’s total allocation under the Capital Project Funds program. New York submitted plans for the remainder of their Capital Project Funds and these applications are currently under review by Treasury.
Last year, New York enrolled one million qualifying households in the federal Affordable Connectivity Program, a nationwide subsidy to expand broadband access to low-income households. The federal program, funded by the Bipartisan Infrastructure Law, provides discounts of up to $30 a month toward internet service for eligible low-income households.
Empire State Development President, CEO and Commissioner Hope Knight said, “Having reliable, accessible and affordable broadband is essential to our economy and our quality of life. This federal funding is a vital component of our ConnectALL program and will connect all New Yorkers, especially in communities that historically been left behind.”