Mamdani Cancels $200M T-Mobile Deal for NYC Student Laptops, Seeks Savings

Mayor Zohran Mamdani’s administration has terminated a $200 million internet service contract with T-Mobile that was part of a larger $330 million initiative launched last year by former Mayor Eric Adams to provide free internet access to students in New York City public schools.

The four-year T-Mobile contract, which cost approximately $3.5 million per month, was designed to equip 350,000 Chromebook laptops with free internet service, aiming to address the digital divide among students from low-income and homeless families. However, Mamdani’s administration announced Thursday that it would discontinue the service by August 31, citing unnecessary duplication of existing resources and higher-than-necessary costs.

Nicole Brownstein, a spokesperson for the Education Department, stated that the T-Mobile contract duplicated resources already available through an existing program that provides LTE service through Verizon at $10 per student per month. “By discontinuing this component of this contract, we are saving taxpayer dollars while continuing to deliver the internet connectivity we know our school communities rely on,” she said.

The decision comes amid broader concerns about the city’s spending on student devices and technology in classrooms. Mamdani’s administration, facing a multibillion-dollar budget deficit, has identified the Education Department’s contracting practices as an area for cost-cutting. The department spends roughly $13 billion annually on contracts.

Officials have notified school principals that the T-Mobile data plans will end on August 31. Schools have been instructed to compile lists of students who require internet access and enroll them in the Verizon program by the start of the school year on September 10. The Education Department has already purchased and distributed all 350,000 Chromebooks to schools, though it has not provided data on how many devices have been issued to students or how many are actively using the internet service.

Feedback from principals has been mixed. At one Manhattan high school, about one in five students used the new devices and relied on them for home internet access. However, the principal expressed concern about the financial burden shifting to the school’s budget with the end of the T-Mobile contract. In contrast, a Brooklyn high school reported that dozens of the devices remain unused in storage, with students preferring to use their phones for internet access. Additionally, the school has reduced reliance on Chromebooks in classrooms due to concerns about excessive screen time hindering learning.

Criticism of the T-Mobile contract began shortly after its implementation. In December, concerns were raised that the city did not explore competing wireless providers and was locked into a flat fee regardless of actual usage. Lawmakers also questioned whether the city was paying for internet service for more students than necessary. A 2020 state Education Department survey estimated that about 13% of city public school students lacked sufficient home internet access, which would translate to roughly 104,000 students based on current enrollment figures.

City officials reported in 2025 that about 30% of households, encompassing 2.5 million residents, lacked both home broadband and mobile internet access. Separate initiatives are underway to improve Wi-Fi access in homeless shelters.

The T-Mobile school internet deal was partly funded by savings from another agreement that made T-Mobile the city’s primary service carrier. The Education Department has not tracked how many of the 725,000 devices purchased during the COVID-19 pandemic remain operational.

State officials, including Governor Kathy Hochul, have taken steps to address concerns about technology in schools. Hochul implemented a statewide bell-to-bell cellphone ban last school year and is considering limits on screen time for younger children. The Education Department is also revising its artificial intelligence guidance for schools and has barred schools from purchasing new software until the guidelines are finalized.