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California fights "preposterous" Trump admin demand to scrap state broadband laws

Policy1 min read

California will take $1.42 billion in federal broadband money, but it refuses to agree to the Trump administration's demand to stop enforcing its net neutrality law and other telecom rules. The state is reserving the right to fight that condition in court.

California takes the money but pushes back

California told the federal government it will accept its share of a broadband grant program. But the state will not promise to stop enforcing its own rules for Internet companies. It says it can still challenge that condition later. This could lead to several legal fights between the state, the federal government, and Internet providers that want government money.

Key numbers

  • The total BEAD program is worth $42 billion.
  • California will spend $1.42 billion to build broadband to 270,571 locations.
  • California may get up to $1.86 billion from BEAD for building and other projects.
  • The federal rule was set last year by the National Telecommunications and Information Administration (NTIA).

What the federal rule says

The NTIA said that any state taking BEAD money must agree not to enforce rate rules or net neutrality rules on Internet providers that get that money. Net neutrality means Internet companies must treat all websites and online content equally and cannot slow down or block some of them. California had to decide whether to accept the money with this limit in place.

Why it matters

State officials say the federal demand would break the state's constitutional rights, so they want to keep the money and keep their laws. The state's utility regulator, the California Public Utilities Commission (CPUC), told NTIA that it cannot agree to unconstitutional terms. Its letter also said other state agencies, such as the attorney general, can still enforce state laws. This means the fight may decide how much power states have over Internet companies.

What to watch

  • Whether the federal government accepts California's reservation of rights.
  • Whether California sues or delays its broadband grant plans.
  • Whether other states take the same stand against the NTIA condition.
  • Whether the attorney general takes action against Internet providers that break state rules.

Glossary

BEAD
Broadband Equity, Access, and Deployment, a $42 billion federal program that gives money to states to bring Internet access to more places.
NTIA
National Telecommunications and Information Administration, a U.S. government agency that manages the broadband program and sets its rules.
CPUC
California Public Utilities Commission, the state agency that regulates utilities and some telecom companies in California.
Net neutrality
A rule that stops Internet companies from slowing down, speeding up, or blocking content based on who provides it.

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