Priorities Podcast: New Mexico’s Timely Broadband Subsidy Program

Podcast: StateScoop Priorities Podcast
Date: March 11, 2026
Host: Keely Quinlan (A)
Guest: Christopher Mitchell, Director of Community Broadband Networks, Institute for Local Self Reliance (ILSR) (B)

Episode Overview

This episode delves into New Mexico’s pioneering efforts to create a state-run broadband affordability program as a response to the sunsetting of the federal Affordable Connectivity Program (ACP). Host Keely Quinlan and Christopher Mitchell explore the structure of New Mexico’s subsidy plan, its unique rural and tribal connectivity challenges, and broader implications for digital equity nationwide—while debating whether such state programs are stopgaps or harbingers of a new era in broadband policy.

Key Discussion Points & Insights

1. The Importance of Internet Access & the End of ACP

• [02:38] Christopher Mitchell emphasizes the essential nature of Internet access, pointing out cost as the main barrier:
  • "Internet access is super essential for families. Unfortunately, millions ... aren't able to access the Internet. And the number one reason ... is too costly, it costs too much."
• The ACP provided $30/month subsidies to qualifying households, ensuring ISPs received reliable payments and could confidently serve low-income families.

2. New Mexico’s State Broadband Affordability Program

• [04:11] The New Mexico legislature moved swiftly to implement a state program as a “stand in” for the ACP, mirroring its $30/month subsidy.
• Instead of state budget appropriations, the program is funded via a Universal Service Fund (USF) model—essentially a surcharge on telecommunications bills (rising from $0.50 to ~$2/month for most).
  • Quote: "It's not an appropriation from the state ... it's being run through a Universal Service Fund program. ... I think it'll cost about $2 a month to most families." [04:11]
• Aims to support approximately 173,000 families at an annual cost of $45 million.

3. New Mexico’s Unique Geography & Connectivity Challenges

• [06:10] New Mexico’s rural, sparsely populated regions and tribal lands raise both access and affordability barriers:
  • "In a city, if you build fiber for a linear mile ... you're going to connect, I don't know, 50, 100 households ... in New Mexico, you might connect one ..." [06:10]
  • Many pueblos and tribal communities are building their own ISPs. High infrastructure and maintenance costs persist, especially in remote areas.
• Satellite solutions like Starlink may be the most practical in extremely remote regions, but cost remains a major barrier even with subsidies.

4. Funding Model Pros and Cons

• [09:08] Mitchell argues USF-style funding is more stable than relying on legislative appropriations, especially during economic downturns:
  • "We really like programs that are for essential services to not be threatened when there's a downturn ... part because that's when these families might need those services the most."
• The biggest risk: surcharges escalating unnoticed.

5. Comparison with Other State Models

• [10:59] Reference to New York, which mandates ISPs offer a $15/month plan to qualified users:
  • Courts upheld the mandate, but public awareness is lacking, and ISPs aren't always proactive in advertising it.
  • Mitchell notes that mandates can significantly impact small ISPs’ finances, whereas giants like AT&T or Comcast can absorb costs easily.
  • "One of the things I like about the New Mexico program is that it is very friendly to smaller Internet service providers ..." [10:59]

6. Broader Social and Economic Impacts

• [14:14] The greatest benefits are in education, telehealth, and economic opportunity, though these are hard to quantify in the short term:
  • "The most important impact will be incredibly difficult to measure and that is education, where you'll have a lot of families able to make sure that their ... kids, but also adults in the home are able to take advantage of this amazing Internet."
  • Improved telehealth access is critical for rural veterans, Medicare/Medicaid recipients, and the elderly.

7. Recommendations for Other States

• [16:40] Mitchell encourages other states to implement similar USF-backed subsidy programs:
  • Ensure ISPs have a predictable, simple reimbursement process to incentivize participation—including from small, local, or tribal ISPs.
  • Cautions that subsidies are only part of the solution; long-term policy should also target reducing overall broadband costs and promoting competition.
  • "It's important that this be a part of a larger strategy to not just subsidize ... but make sure that the Internet access market ... encourages people to have real choices so that we have competition in a dynamic market."

8. Are State Programs a Temporary or Permanent Shift?

• [19:03] Skepticism about near-term federal action:
  • "I don't know that we can predict when the federal government will take this seriously ... I feel like local politics is stepping up to solve more and more problems."
• Notes that broadband policy at the federal level is hampered by partisanship and corporate lobbying.
• Belief that states must continue to take the lead on broadband equity and infrastructure efforts moving forward.

Notable Quotes & Memorable Moments

• "The number one reason that most people believe that's limiting [Internet] access is ... it costs too much." – Christopher Mitchell [02:38]
• "It's not an appropriation from the state ... it's being run through a Universal Service Fund program." – Christopher Mitchell [04:11]
• "In New Mexico ... you have very few people that are in those counties. And so connecting them is quite difficult." – Christopher Mitchell [06:10]
• "For some of them, Starlink is probably the best answer ... where the cost of connecting a home might be a hundred thousand dollars." – Christopher Mitchell [07:26]
• "We really like programs that are for essential services to not be threatened when there's a downturn ... that's when these families might need those services the most." – Christopher Mitchell [09:08]
• "We want to make sure that we're careful about encouraging people to serve those areas with high quality networks and then ... people there are able to subscribe to those services." – Christopher Mitchell [12:48]
• "The most important impact will be incredibly difficult to measure and that is education ... I think that alone would justify $45 million of program per year." – Christopher Mitchell [14:14]
• "It's important that this be a part of a larger strategy ... not just subsidize ... but make sure that the Internet access market ... encourages people to have real choices." – Christopher Mitchell [17:56]
• "I feel like the states really need to take more responsibility and local governments also have to ... find something that will work for high density and low density areas." – Christopher Mitchell [20:41]

Timestamps of Key Segments

• [02:38] – Why ACP mattered and what its loss means for families
• [04:11] – Design, funding, and structure of New Mexico’s new subsidy program
• [06:10] – New Mexico’s distinct rural, tribal, and affordability challenges
• [09:08] – Pros and cons of Universal Service Fund as a funding mechanism
• [10:59] – Comparing New Mexico and New York’s approaches; large vs. small ISPs
• [14:14] – Educational, health, and social impacts of broadband access
• [16:40] – Advice and cautions for other states eyeing similar programs
• [19:03] – Will the future of broadband affordability rest with states?

Conclusion

This episode provides a nuanced view of the shifting broadband policy landscape, highlighting New Mexico’s innovative response to federal program lapses and offering a compelling call for states and localities to take up the mantle of digital equity. Christopher Mitchell’s perspective underscores the need for reliable, sustainable affordability measures and champions the inclusion of smaller, community-focused ISPs—while never losing sight of the larger challenge: building a competitive, affordable, and accessible Internet for all.