California is accepting $1.86 billion in broadband grant funding from the Trump administration, but the state is not accepting the Trump administration’s demand that it stop enforcing a net neutrality law and other telecom regulations. California’s stand against the Trump administration could result in multiple legal battles involving the state, federal government, and Internet providers seeking government funds. Although California told the federal government it would accept the money, it is reserving the right to challenge the condition imposed by the US.
The state could delay or cancel plans to distribute broadband grants depending on how the process unfolds. The National Telecommunications and Information Administration (NTIA) decided last year that states must agree not to enforce any rate regulation or net neutrality rule on ISPs that receive money from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. California had to decide whether to accept its share of the fund despite that restriction.
State officials argue that California should be able to obtain the money and keep enforcing its laws because the Trump administration’s demand would violate the state’s constitutional rights. The California Public Utilities Commission (CPUC) made its view clear in a carefully worded letter yesterday to Assistant Secretary of Commerce and NTIA Administrator Arielle Roth. Reynolds’ letter also said the CPUC cannot prevent other California agencies from enforcing state laws, suggesting that the attorney general would maintain the right to punish misbehaving Internet providers.
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