California fights "preposterous" Trump admin demand to scrap state broadband laws

California has received $1.42 billion in broadband grant funding from the Trump administration, but the state is refusing to comply with the administration's request to abandon net neutrality laws and other telecom regulations. This stance by California could lead to a series of legal disputes involving the state, federal government, and Internet service providers competing for government funding.

While California has acknowledged it would accept the money, it is maintaining the option to contest the condition set by the US. The state may postpone or abandon its plans to distribute broadband grants depending on the outcome of the situation. Last year, the National Telecommunications and Information Administration (NTIA) mandated that states must pledge not to enforce any rate regulation or net neutrality rules on ISPs that receive funds from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program.

California must now determine whether to accept its portion of the funds despite this restriction. The state is prepared to invest $1.42 billion to extend broadband services to 270,571 locations, and could ultimately receive up to $1.86 billion in BEAD funding for a combination of deployment and non-deployment projects.