New York broadband to get funding boost

WASHINGTON - New York is getting a second shot at federal funding to expand broadband service upstate.

The Federal Communications Commission — after much prodding from New York elected officials — will reverse course and direct $170 million to the Empire State after threatening to bid the money out elsewhere.

“This is huge news for rural communities all across upstate New York,” said Senate Minority Leader Charles Schumer, D-N.Y.

The extra funding is expected to make a significant dent in the 229,000 households upstate that lack adequate service. Nearly 78,000 households upstate were previously eligible to receive the funds, though it wasn't immediately clear on Thursday how many are eligible now.

Federal funds available to expand broadband

The extra funding complements a $500 million broadband deployment plan Gov. Andrew Cuomo announced last year. The FCC decision will help continue to promote "an interconnected and inclusive broadband program without leaving any New Yorkers behind," Cuomo said Thursday.

“This is New York funding that rightly belongs in New York and with this action we’re going to be able to build upon this administration’s unprecedented half-a billion dollar investment to make broadband available in every corner of this state,” Cuomo said in a statement.

New York was in danger of losing the $170 million in federal funds when Verizon didn’t accept money it was allocated from the Connect America Fund.

The FCC had planned to bid the unused money nationally but reversed course at the urging of Cuomo, Schumer and Rep. Chris Collins, R-Clarence, Erie County.

Schumer said the announcement would allow other broadband companies to bid on the funding to improve broadband access upstate.

ngaudiano@Gannett.com

Nicole Gaudiano is correspondent for USA TODAY Network's Washington Bureau.