California is accepting $1.42 billion in federal broadband grant money from the Trump administration while rejecting a condition that it stop enforcing its net neutrality law and other telecom rules, according to the source. The state is reserving the right to challenge that condition.
The National Telecommunications and Information Administration (NTIA) required states to agree not to enforce any rate regulation or net neutrality rule against internet service providers that receive funds from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. The source says California is slated to spend $1.42 billion to deploy broadband to 270,571 locations and may receive up to $1.86 billion in total BEAD funding.
California Public Utilities Commission (CPUC) President John Reynolds wrote to NTIA Administrator Arielle Roth. "The CPUC cannot be bound by any terms or conditions that are unconstitutional or not authorized by law," Reynolds wrote, adding that the commission does not waive any challenges to the condition. His letter also said the CPUC cannot prevent other state agencies, such as the attorney general, from enforcing state law.
Reynolds' letter said the state will not distribute funds to providers until the state and NTIA resolve their differences. If NTIA does not change its position, the source reports that California could sue on the grounds that the condition is unconstitutional.
An NTIA spokesperson told Ars Technica that the award terms constitute the entire agreement and that the CPUC's letter is not part of the award. The source also reports that NTIA updated its BEAD progress dashboard to show that California signed its final agreement.
Public Knowledge, a consumer advocacy group, supported the CPUC's position. Senior policy counsel Raza Panjwani said the demand "has no basis in the Infrastructure Investment and Jobs Act." He called the administration's demand "preposterous" and said NTIA "has no authority to alter California state law."