Behind New York’s attempt to double-dip on broadband subsidies

The Federal Communications Commission faced criticism from Capitol Hill when a bipartisan letter from the New York delegation complained that the state has been unfairly excluded from participating in the agency’s new $20 billion broadband initiative. Sens. Chuck Schumer (D-NY) and Kirsten Gillibrand (D-NY) accused the agency of “plotting” against the state, while some journalists have characterized this incident as part of a “petty” campaign against states that have opposed the agency or the Trump administration more generally. But as usual, a deeper look reveals that the real story does not quite match the sound bite. The new initiative targets areas that lack broadband. It thus excludes areas that received buildout funding during the agency’s earlier CAF-II auction, regardless of state. The allegedly disproportionate effect stems in part from the fact that New York received more favorable treatment in that earlier auction — and caving to Schumer and Gillibrand’s request would allow New York to impermissibly double-dip into limited agency funds.

The Rural Digital Opportunity Fund is designed to address areas that the CAF-II auctions and other earlier initiatives failed to fund. New York took special steps to make sure that it received every dollar that the FCC made available through CAF-II to wire New York, steps that were unavailable to other states. I do not fault New York’s congressional delegation for seeking additional funding — after all, seeking public services for their constituents is part of their job. But the agency is right to prevent the state from double-dipping. Other states will receive Rural Digital Opportunity funding for areas that were not served by the CAF-II auctions. Having received special treatment in that auction, New York should not be allowed benefit again by becoming the only state able to tap both funds to serve the same area.

[Lyons a professor at Boston College Law School]