California is withholding broadband funding from internet service providers while it disputes federal conditions attached to the Broadband Equity, Access, and Deployment (BEAD) program. The California Public Utilities Commission (CPUC) says the terms could prevent the state from enforcing affordability, net neutrality, privacy, and other broadband protections. If the National Telecommunications and Information Administration (NTIA) refuses to change its position, California could sue the Trump administration, arguing that the conditions are unconstitutional.
California challenges federal BEAD conditions
In a letter, Reynolds acknowledged that the NTIA may disagree with the CPUC’s position and said California would not allocate funds to ISPs until state and federal agencies resolve their differences.
The NTIA appears unlikely to change course. “As stated in the department’s response to the CPUC, the terms of the award constitute the entire agreement between the NTIA and the CPUC. No part of the letter outlining the CPUC’s concerns is incorporated into or becomes part of the award,” an NTIA spokesperson told Ars.
Consumer advocacy group Public Knowledge supports the CPUC’s position. The group described the Trump administration’s request to preempt state laws as “brazen and worthless.”
Raza Panjwani, a senior policy advisor at Public Knowledge, said, “This administration’s ridiculous demand that industry be exempted across the board from affordability requirements, net neutrality, privacy protections, and any other commitments to connect and serve Americans. There is no basis in the Infrastructure Investment and Jobs Act (IIJA) that established BEAD. Also, as the committee points out, NTIA does not have the authority to change California law or require California government agencies not to enforce the law.”
Section 50 of the BEAD regulations
The CPUC voted to approve the funding plan in September. However, in a letter to the Trump administration yesterday, Reynolds said the agency’s acceptance of the funds was “based on the CPUC’s best understanding of the implications of Section 50” of the BEAD Terms of Use.
Section 50 of the BEAD regulations states that each state:
During the period in which Grantee holds a Subgrant, it will not enforce any law, regulation, order, contractual requirement, or other enforceable obligation that directly or indirectly regulates the rates, terms, and conditions of broadband Internet service, or enforces net neutrality rules, open access, or other utility-style regulations regarding broadband Internet service within the State in which the Subgrantee provides services (i.e., both BEAD and non-BEAD locations); You undertake not to coerce Subgrant or any of its affiliates in any way. Performance, Performance Extension Period, or Federal Interest Period.
The BEAD rules define net neutrality requirements as rules that prohibit ISPs from “blocking content, throttling speeds, capping data, or implementing paid prioritization.” ISPs receiving BEAD funding may be exempt from these laws for up to 14 years.
Source: arstechnica.com