The U.S. Court of Appeals for the Second Circuit has reinstated the Affordable Broadband Act (ABA), a New York law that requires Internet service providers to offer broadband service at $15 a month to qualifying low-income households. The ABA, which was signed into law in 2021, was challenged by industry groups and put on hold by a lower court days before it was set to take effect. The lawsuit was filed by NTCA, ACA Connects, CTIA, the New York State Telecommunications Association, the Satellite Broadcasting & Communications Association, and USTelecom. In the lawsuit, the ISP groups argued that the ABA sought to regulate broadband rates, which they said was contrary to federal law and the FCC’s rules. The U.S. District Court for the Eastern District of New York found merit in this argument and granted a permanent injunction. The Second Circuit found the Plaintiffs’ preemption theories to be unavailing and therefore reversed the judgment of the district court and vacated the permanent injunction.
