FCC Might Give All Low-Income Households An Internet Subsidy

The Federal Communications Commission is moving forward on a plan to grant low-income families across the country a monthly $9.25 broadband subsidy, hopefully making studying for an exam, applying for a job, checking Facebook and researching say, healthcare providers, something less than cost-prohibitive. For context, the NY Times reports that internet costs $52.50/month on average in US cities. According to one internet service aggregator, internet in New York costs from $30/month. The FCC subsidy could result in monthly savings of about 20-30%.

The FCC's proposal is part of a $2 billion overhaul to a federal program called Lifeline, which was established back in the 1980s to subsidize landline service for low-income families. To qualify, participants must make 135% of the national poverty level or less (that's about $16,000/year for an individual), or already receive federal aid like Medicaid or food stamps. Republican legislators have been historically stingy when it comes to Lifeline—in 2008, the program was expanded to subsidize wireless service as well, and some families began billing double for subsidies, even though they were only technically allotted one. "Before again expanding the program, we need to consider what problems remain and how we can address them," Republican Senator Roger Wicker said over the summer. But the NY Times points out that the FCC commissioners have a democratic majority, and are likely to pass the measure.

In New York City, "super fast" wifi kiosks are proliferating on sidewalks, and a Governor with many grand ambitions is promising Wi-Fi throughout the subway. Meanwhile, a recent report from the Center for Economic Opportunity found that 22% of households don't have internet access.

The FCC is expected to vote on the proposed subsidy on March 31st.

Last summer, Mayor de Blasio committed $10 million to equip the Mott Haven Houses in the Bronx, the Red Hook Houses in Brooklyn, and the Queensbridge Houses in Long Island City with free broadband, with the latter coming online "as soon as" this year.