California may gut state net neutrality law to comply with Trump admin demand

California faces a potential rollback of its net neutrality law as it prepares to accept a $1.86 billion federal broadband grant, following the Trump administration's directive that states cannot enforce net neutrality rules on ISPs receiving grant money. In response to the Trump administration's $42 billion Broadband Equity, Access, and Deployment (BEAD) program overhaul, the administration mandated that states surrender the right to regulate rates or net neutrality for ISPs receiving funding.

This provision poses a significant challenge for California, which had successfully defended its state net neutrality law in a prolonged legal battle. The law, akin to federal net neutrality rules repealed during the first Trump administration, prohibits ISPs from blocking or throttling lawful traffic and restricts ISPs from charging websites or online services fees to deliver or prioritize traffic for users.

Although the first Trump administration failed to preempt state net neutrality laws, the current administration is attempting a similar outcome by tying federal broadband funds to states' agreement not to enforce net neutrality rules.