Second Circuit revives New York affordable broadband plan for low-income families

Overturning a federal judge’s injunction, the Second Circuit on April 26, 2024 revived a New York state law that sought to provide discounted broadband internet to low-income families. After former Governor Andrew Cuomo (D-NY) signed the Affordable Broadband Act into law in 2021, trade groups representing broadband and satellite internet companies sued the state, claiming the policy “intrudes into an exclusively federal field.” Internet companies, including Verizon and AT&T, said the state law conflicts with federal communications rules, which preempt state law under the U.S. Constitution. A federal judge agreed and ordered a permanent injunction on the law. But on closer examination, a Second Circuit panel said the internet companies’ claims fail. The appeals court found the federal Communications Act of 1934 does not exclude states from regulating the rates charged for broadband internet. “The Communications Act contains provisions expressly prohibiting states from regulating specific types of communications services," U.S. Circuit Judge Alison Nathan wrote in the decision. "None covers all rate regulations of interstate communications services." According to the panel, Congress was explicit in its intent to regulate aspects of interstate communications — but there is no evidence that it intended to do so for rate regulations.