A Billion-Dollar Promise With Strings Attached
New York’s latest grand venture, the ConnectALL Initiative, kicked off its final phase this week with a bold pledge to bring high-speed internet to every corner of the state. Governor Kathy Hochul hailed it as a 'watershed moment,' claiming no New Yorker will be left offline. The price tag? A cool $1 billion, with $644 million in federal grants alone funneled into the Deployment Program to wire up the last 20,000 homes and businesses. Sounds noble, but dig deeper, and it smells like another bloated government project dressed up as progress.
The plan leans hard on a mix of fiber optics, satellite, and fixed wireless to reach remote areas. Hochul’s team insists this will bridge the digital divide, ensuring kids can study, doctors can consult, and businesses can thrive, no matter the zip code. It’s a feel-good pitch, but the devil’s in the details. Massive public spending like this often balloons beyond projections, leaving taxpayers on the hook when the dust settles. And for what? To chase a utopian vision of universal connectivity that might not even deliver.
Look, nobody disputes the value of internet access in 2025. It’s as vital as electricity for most households. But the state’s top-down approach, with its endless red tape and reliance on federal handouts, raises red flags. Why not let the private sector, which has driven innovation in tech for decades, take the lead? Companies like Starlink are already beaming internet to rural outposts across the country, no bureaucracy required.
Instead, New York’s betting big on a centralized plan that smells more like political posturing than practical problem-solving. Hochul’s team touts 'equity' and 'inclusion,' but those buzzwords don’t guarantee results. History shows government-led megaprojects rarely deliver on time or under budget. Just ask anyone who’s waited years for a subway upgrade.
The Private Sector’s Proven Edge
Let’s talk straight. The private sector has been outpacing government in broadband innovation for years. Low Earth orbit satellites, like those from SpaceX’s Starlink, are now hitting speeds close to 100 Mbps in places fiber can’t touch. Texas, for instance, launched a $30 million pilot in April 2025 to connect remote areas using satellite tech, no state bureaucrats needed. Compare that to New York’s $644 million Deployment Program, which still needs federal approval and won’t see shovels in the ground until next year at earliest.
Fixed wireless is another game-changer. It’s cheaper and faster to deploy than laying miles of cable through rugged terrain. Private companies are already rolling it out in rural pockets across the U.S., often with better reliability than government-backed projects. Yet New York’s plan treats these technologies as afterthoughts, prioritizing fiber optics that sound great on paper but cost a fortune in places like the Adirondacks.
Then there’s the question of competition. Hochul’s initiative claims to 'enhance competition' among providers, but government picking winners and losers rarely ends well. Back in the 2000s, federal subsidies for early satellite broadband created bloated contracts with little accountability. Fast-forward to today, and New York risks repeating that mistake by funneling millions to select applicants who may not deliver the bang for the buck taxpayers deserve.
Contrast that with the free market’s track record. When companies compete, prices drop, and service improves. Look at the smartphone boom: no state program forced Apple or Samsung to make better devices; consumer demand did. Unleashing that same energy in broadband could connect New York’s rural communities faster and cheaper than any Albany blueprint.
Affordability, Not Just Access, Is the Real Fight
Here’s where the state’s plan really stumbles. Access is only half the battle; affordability is the other. The federal Affordable Connectivity Program, which gave low-income households up to $75 a month for internet, collapsed in June 2024 when Congress failed to renew it. Over 1 million New Yorkers lost that lifeline, and now families are scraping by, choosing between groceries and Wi-Fi. ConnectALL’s answer? A $100 million Affordable Housing Connectivity Program that’s so far wired up just 14,000 households in Buffalo, Rochester, and New York City.
That’s a drop in the bucket when nearly 30% of New York City households, about 2.5 million people, still lack home broadband or mobile data. The state’s patting itself on the back for $10-a-month plans in public housing, but what about the working-class families just above the subsidy line? They’re left twisting in the wind, and ConnectALL’s focus on infrastructure ignores the monthly bills that keep people offline.
The evidence backs this up. Research from 2024 shows rural counties with high broadband adoption see 213% more business growth and 44% higher GDP growth. But adoption hinges on cost, not just cables in the ground. New York’s digital equity efforts, like its $50 million Digital Equity Program, talk a big game about literacy and devices, but they sidestep the affordability crisis head-on. A real solution would prioritize vouchers or tax credits to keep internet bills manageable, not just build more networks.
The Federal Handout Trap
New York’s plan leans heavily on federal dollars, with $644 million from the NTIA tied up in the Deployment Program. Sure, the Broadband Equity, Access, and Deployment program has pumped $42.45 billion nationwide to close digital gaps, and states like West Virginia and Arkansas are using it to streamline permitting and train workers. But federal funding comes with strings, timelines, and oversight that can bog down progress. New York’s already jumping through hoops to meet a July 2025 deadline for NTIA approval, and delays could push projects past 2029.
This reliance on Washington’s largesse is a risky bet. The NTIA’s own guidance admits states face hurdles like pole attachment delays and workforce shortages. Instead of cutting red tape, New York’s piling on with prequalification processes and public comment periods. It’s a recipe for paralysis by analysis, and rural New Yorkers waiting for service won’t thank Albany when the funds get tied up in bureaucracy.
There’s a better way. States like Michigan are blending state funds with private investment to sidestep federal bottlenecks. New York could take a page from that playbook, using targeted tax breaks to spur companies to build where it’s needed most. That keeps the money local and the projects moving, without kowtowing to D.C.’s whims.
Time to Rethink the Playbook
New York’s ConnectALL Initiative isn’t all bad. The goal of connecting every home and business is worth pursuing, and the state’s focus on hard-to-reach areas shows some grit. But the execution, with its billion-dollar scope and government-first mindset, feels like a swing and a miss. Taxpayers deserve a plan that respects their wallets and delivers results without decades of delays.
The path forward lies in empowering the private sector, slashing bureaucratic hurdles, and tackling affordability head-on. Let companies innovate, give families real relief on their bills, and keep federal overreach at bay. That’s how you build a digital New York that works for everyone, not just the headline writers in Albany.