Digital Beat

Internet Access Costs Too Much for Too Many People. New Mexico Has a Solution.

In New Mexico, as in every state, the primary reason people can’t get online is that they can’t afford internet service. Fortunately for New Mexicans, their state legislature established a sustainable and budget-neutral way to address this issue. And, by doing so, New Mexico has created a model other states can replicate.

In February 2026, and with overwhelmingly bipartisan support, the New Mexico Legislature established the Low-Income Telecommunications Assistance Program (LITAP). Starting July 1, 2026, the program will provide low-income households with a monthly benefit to buy internet and/or mobile service. This benefit will be made available by New Mexico’s state rural universal service fund, which raises revenue through a fee on New Mexicans' telephone and internet bills. By increasing the existing fee by roughly $1/month, the state legislature estimates that the Low-Income Telecommunications Assistance Program will be able to provide up to 120,000 households with a ~$30/month broadband benefit while remaining under an annual budget of $45 million (additional spending would require legislative approval). The program will have no impact on the state’s general fund because it is paid for via the fee, not appropriations.

The Low-Income Telecommunications Assistance Program will likely draw additional federal dollars to New Mexico because the program can be combined with the federal Lifeline benefit of $9.25/month. Lifeline, on its own, suffers from chronic underuse, in part due to its small size. However, when paired with the Low-Income Telecommunications Assistance Program, the combined benefit of ~$40 could drive enrollment in both programs, a dynamic seen with the (now expired) $30/mo federal Affordable Connectivity Program (ACP).

New Mexico has effectively recreated the ACP at the state level, doing so while addressing the ACP’s fatal flaw: the COVID-era program was funded through appropriations. In 2024, Congressional inaction allowed ACP funding to lapse despite the program’s widespread popularity and bipartisan support (including from then-Senator J.D. Vance). When the ACP ended, tens of millions of low-income Americans lost the assistance they relied on to afford broadband. Now, at least in New Mexico, the Low-Income Telecommunications Assistance Program will help them get online.

The Low-Income Telecommunications Assistance Program is a model that can be replicated in other states. Indeed, California, Texas, and Oregon have similar programs that predate New Mexico’s effort, and a majority of states have their own universal service funds that could serve as funding mechanisms.

The question is whether policymakers believe the benefits of connecting vulnerable households outweigh the costs. Broadband affordability subsidy programs, like New Mexico’s, can have significant and ongoing costs, but they can also drive infrastructure deployment and generate benefits that outweigh those costs (thanks to better health, education, and economic outcomes). In New Mexico, the bipartisan consensus is that the benefits are well worth the investment.

Drew Garner is the Director of Policy Engagement at the Benton Institute for Broadband & Society.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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Kevin Taglang
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Benton Institute
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