California accepts $1.42B in federal broadband funding, but challenges the Trump administration's demand that it stop enforcing state net neutrality rules (Jon Brodkin/Ars Technica)

California is accepting $1.42 billion in broadband grant funding from the Trump administration, but the state is refusing to comply with a demand to stop enforcing its net neutrality law and other telecom regulations. According to Ars Technica Policy, the National Telecommunications and Information Administration (NTIA) previously decided that states must agree not to enforce rate regulation or net neutrality rules on internet service providers receiving money from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program.

While California has indicated it will accept the money, the state is reserving the right to challenge the condition imposed by the federal government. Ars Technica Policy notes that this stance could lead to legal battles between the state, the federal government, and internet providers seeking funds. Depending on how the situation unfolds, California could delay or cancel its plans to distribute the grants.

The state is slated to spend $1.42 billion to deploy broadband to 270,571 locations and may eventually receive up to $1.86 billion from BEAD for various deployment and non-deployment projects.

Brief written by urgent.news from Techmeme, Ars Technica Policy, Ars Technica — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.