Will California Gut Its Net Neutrality Law to Comply with Trump Admin Demands?

In 2021, America approved $65 billion to fund broadband internet services as part of President Biden's Bipartisan Infrastructure Law. But Trump's administration announced they'd withhold funds from states with net neutrality protections... States could object and sue the government, Ars Technica reported last October, "but even a successful lawsuit could take years and leave unserved homes without broadband for the foreseeable future." So where does that leave California's net neutrality laws? Ars Technica asks. California expect to spend about $1.4 billion to deploy broadband to 270,571 locations... Similar to federal net neutrality rules repealed during the first Trump administration, California's law prohibits ISPs from blocking or throttling lawful traffic and says ISPs may not require fees from websites or online services to deliver or prioritize their traffic to Internet users. While the first Trump administration lost its attempt to preempt state net neutrality laws, the second Trump administration is trying to achieve a similar result by making federal broadband money conditional on whether states agree not to enforce net neutrality... California and Illinois are the only states that haven't finalized their funding, according to the BEAD progress dashboard maintained by the National Telecommunications and Information Administration (NTIA)... California could try to continue enforcing its net neutrality law even while accepting the federal funding, a strategy that would involve another long court battle over its right to regulate broadband providers. This would be difficult, as the Trump administration is requiring states that accept grant funding to commit that they won't enforce net neutrality rules... [N]early 30 advocacy groups that focus on access to technology are treating the vote as a significant milestone and urged state leaders to defend California's net neutrality law in a letter yesterday... Winning a court battle would become much more difficult after the state accepts the money [according to Paul Goodman, legal counsel for the Center for Accessible Technology]. Goodman said the CPUC should delay the vote and that California should file a lawsuit arguing that the NTIA-imposed condition is illegal. In addition to net neutrality, Goodman said California may be giving up other regulatory authority over companies, like AT&T and Verizon, because the NTIA requirement forbids rate regulation and "utility-style rules on broadband Internet service" in general... Goodman said the exemption from state laws would last for up to 14 years. This is because ISPs receiving grants would have four years to deploy the required broadband networks, and the extended period of performance lasts another 10 years... AT&T is already trying to get out of state obligations related to its basic phone service in California, as we've reported... [Also at stake is whether "ISPs themselves get to pick the price of the mandated low-cost broadband offerings," the article points out.] The letter from 30 advocacy groups to California state leaders argues accepting the money "would set a dangerous precedent for the federal government to use federal funding as a cudgel that forces states in line with its agenda... If California were to allow this funding to be used as leverage, there is no telling what other resources the administration would confidently seek to exploit." Thursday California's Public Utility Commission did vote to approve the plan, but a spokesperson earlier told Ars Technica their vote "does not address subgrantee agreements, or the conditions the NTIA requires be included in subgrantee agreements."

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