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Panel examines H.121, a bill modeled on New York to require affordable broadband plans for low‑income households
Summary
On Feb. 12 the House Energy Division reviewed H.121, modeled after New York’s law, which would require ISPs serving Vermont to offer an affordable broadband plan for eligible low-income households and create reporting and rulemaking duties for the Public Utilities Commission and Department of Public Service.
Maria Royal of the Legislative Council briefed the committee on H.121, a proposal modeled on New York’s affordable‑broadband law that the testimony said the Second Circuit upheld in 2024 and for which the U.S. Supreme Court denied review in December 2024.
What the bill would require Royal said H.121 would require an Internet service provider offering service in Vermont to make available an affordable broadband option for eligible low‑income consumers on or before Oct. 1 of the current year in the bill’s draft. The draft defines an affordable plan in two ways: either a plan with a download speed of at least 25 megabits per second for a monthly price not to exceed $15 (all recurring fees included), or a plan with at least 200 megabits per second for a price not to exceed $20 monthly (all recurring fees included). Royal said the statute’s rulemaking language allows the PUC discretion to adjust price or speed thresholds for inflation or other factors but caps increases at 2% per year in the current draft.
Eligibility and enrollment The draft ties eligibility to participation in federal programs: households eligible for the federal Lifeline program or the state home-heating assistance program (LIHEAP) would qualify. Royal and members discussed the administrative burden of verifying eligibility; Royal noted the federal “national verifier” system used for Lifeline can streamline eligibility verification and that categorical programs—SNAP, Medicaid and others—are commonly used as categorical eligibility pathways.
Provider reporting, exemptions and enforcement H.121 would require providers to report to the Department of Public Service beginning in November following enactment on the number of customers receiving affordable service, eligibility‑verification procedures, advertising and outreach efforts, and the provider’s full product portfolio and pricing in Vermont. The PUC could waive the minimum‑speed requirement upon a provider’s showing that the speed is not reasonably practicable and could exempt providers serving not more than 20,000 customers if compliance would have an unreasonable financial impact. Royal read that willful violations would be a violation of Vermont’s Consumer Protection Act and could carry civil penalties up to $1,000 per violation.
Committee questions and examples Committee members noted that some large providers already offer low‑cost plans. Royal cited an example shared with the committee that Xfinity’s low‑income plan is priced at $14.95 and uses categorical eligibility such as SNAP, Medicaid, LIHEAP and other federal‑program letters. Members asked how many Vermonters might qualify but lack broadband; Royal noted roughly 10,000 Vermonters enrolled in federal Lifeline in the most recent data she cited and that about 25,000 Vermonters participated in the federal Affordable Connectivity Program while it was active—figures the committee may verify with DPS staff.
Next steps Royal said the PUC would carry out technical rulemaking on implementation details and the Department of Public Service would file an annual aggregated report to the legislature about enrollment and any recommended adjustments to speed or eligibility thresholds.
