Continuing losses of multi-year sea ice (MYI) across the Arctic are causing first-year sea ice (FYI) to dominate the Arctic ice pack. Melting FYI provides a strong seasonal pulse of dissolved organic matter (DOM) into surface waters; however, the biological impact of this DOM input is unknown. Here we show that DOM additions cause important and contrasting changes in under-ice bacterioplankton abundance, production and species composition. Utilization of DOM was influenced by molecular size, with 10–100 kDa and >100 kDa DOM fractions promoting rapid growth of particular taxa, while uptake of sulfur and nitrogen-rich low molecular weight organic compounds shifted bacterial community composition. These results demonstrate the ecological impacts of DOM released from melting FYI, with wide-ranging consequences for the cycling of organic matter across regions of the Arctic Ocean transitioning from multi-year to seasonal sea ice as the climate continues to warm.