11 April 2025 |

Governor Hochul Announces New Federal Funds

New York State is investing $50 million to close the digital divide. Governor Kathy Hochul announced the expansion as part of Phase 4 of the Municipal Infrastructure Program (MIP). This increase raises total program funding to nearly $300 million. The initiative aims to bring high-speed internet to unserved and underserved communities. Rural and economically disadvantaged areas have struggled with poor connectivity for years.

New York has already invested over $240 million in broadband. This latest phase uses federal funds from the U.S. Department of Treasury Capital Projects Fund. The money will help develop publicly controlled, open-access broadband networks. State officials say this approach will boost competition and lower costs for consumers.

A Push to Close the Digital Divide

High-speed internet is now essential for work, education, and healthcare. Yet, many New York communities still lack reliable service. Data shows thousands of households remain without adequate broadband, especially in rural and low-income urban areas.

Governor Hochul has made expanding broadband access a central goal of her administration. “Reliable, affordable high-speed internet is no longer a luxury — it’s a necessity,” Hochul said in a statement. “Phase 4 of the Municipal Infrastructure Program builds on our ongoing efforts to address broadband gaps in areas that have been overlooked and underserved by traditional internet service providers.”

The MIP expansion aligns with national efforts to improve broadband. The American Rescue Plan allocated billions to infrastructure, including broadband. Senate Majority Leader Chuck Schumer, a key advocate for these funds, compared broadband to electricity. “Broadband is a necessity, not a luxury,” he said.

Senator Kirsten Gillibrand echoed that sentiment. She called broadband “a necessity of the American economy” that drives digital literacy, education, and business development.

Local Officials and Advocates Weigh In

While the state is touting this investment as a game-changer, municipal leaders say more work is needed to ensure the funding reaches the communities most in need.

“This program has been an important tool for counties working to bridge the digital divide,” said Benjamin Boykin II, President of the New York State Association of Counties. “This latest phase of funding is another important step toward closing connectivity gaps and will enable counties to continue investing in the critical broadband infrastructure that supports economic growth, education, and public safety.”

However, some local leaders caution that funding alone is not enough. The challenge, they say, is ensuring that broadband projects are implemented effectively and do not simply favor large internet service providers. Barbara J. Van Epps, Executive Director of the New York State Conference of Mayors, noted that public investment in broadband could empower local governments to take a more active role in internet service delivery. “By supporting publicly controlled broadband projects, this funding allows local governments to bridge the digital divide in a way that serves their residents directly,” she said.

New York’s public broadband programs are administered by the Governor’s office

New York’s public broadband programs are administered by the Governor’s office

New York Broadband Infrastructure Plans and Public Access

The Municipal Infrastructure Program is a key part of New York’s larger broadband expansion plan, which includes the Excelsior Broadband Network. A central component of this initiative is the construction of a fiber optic line along the New York Thruway, designed to improve broadband access and mobile connectivity across the state.

While state officials argue that projects like these will create long-term solutions for internet access, some experts warn that large-scale infrastructure improvements could take years to complete, leaving some communities waiting for relief.

Application Process and Next Steps

The state is now accepting applications for Phase 4 of the MIP, with a submission deadline of April 25, 2025. Municipalities and other eligible entities must apply through the New York State Consolidated Funding Application (CFA) Portal. Officials say they are prioritizing projects that focus on unserved and underserved areas, though competition for funding is expected to be fierce.

Governor Hochul has positioned broadband expansion as a pillar of her administration’s economic development strategy, arguing that high-speed internet is essential for job creation and innovation. Through the ConnectALL initiative, New York State is investing $1 billion in broadband expansion, including targeted programs to improve affordability and access for low-income households.

Ongoing Challenges and Future Outlook

Despite major investments, challenges remain. Some experts question the long-term sustainability of government-funded broadband programs. They argue that success depends on proper management and maintenance. Others say affordability must remain a focus.

With applications now open, municipalities will compete for a share of the $50 million. Each hopes to bring reliable internet to residents who have waited too long for connectivity. Whether this effort fully closes the digital divide remains to be seen. But for now, New York is making one of its largest broadband investments yet.

More on Public Broadband

  • More of our recent stories about BEAD and public broadband programs
  • For up-to-date information on the $42 billion BEAD Program, check Brander Group’s BEAD funding progress dashboard

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