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Will California Gut Its Net Neutrality Law to Comply with Trump Admin Demands? (arstechnica.com)

(Friday September 18, 2026 @03:04PM (EditorDavid) from the neutral-parties dept.)


In 2021, America approved $65 billion to fund broadband internet services as part of President Biden's Bipartisan Infrastructure Law. But Trump's administration announced they'd withhold funds from states with net neutrality protections...

States could object and sue the government, Ars Technica [1]reported last October , "but even a successful lawsuit could take years and leave unserved homes without broadband for the foreseeable future." So where does that leave California's net neutrality laws? [2] Ars Technica asks. California expect to spend [3]about $1.4 billion to deploy broadband to 270,571 locations...

> Similar to federal net neutrality rules [4]repealed during the first Trump administration, California's law prohibits ISPs from blocking or throttling lawful traffic and says ISPs may not require fees from websites or online services to deliver or prioritize their traffic to Internet users. While the first Trump administration [5]lost its attempt to preempt state net neutrality laws, the second Trump administration is trying to achieve a similar result by making federal broadband money conditional on whether states agree not to enforce net neutrality...

>

> California and Illinois are the only states that haven't finalized their funding, according to the [6]BEAD progress dashboard maintained by the National Telecommunications and Information Administration (NTIA)... California could try to continue enforcing its net neutrality law even while accepting the federal funding, a strategy that would involve another long court battle over its right to regulate broadband providers. This would be difficult, as the Trump administration is requiring states that accept grant funding to commit that they won't enforce net neutrality rules... [N]early 30 advocacy groups that focus on access to technology are treating the vote as a significant milestone and urged state leaders to defend California's net neutrality law in [7]a letter yesterday...

>

> Winning a court battle would become much more difficult after the state accepts the money [according to Paul Goodman, legal counsel for the [8]Center for Accessible Technology. Goodman said the CPUC should delay the vote and that California should file a lawsuit arguing that the NTIA-imposed condition is illegal. In addition to net neutrality, Goodman said California may be giving up other regulatory authority over companies, like AT&T and Verizon, because the NTIA requirement forbids rate regulation and "utility-style rules on broadband Internet service" in general... Goodman said the exemption from state laws would last for up to 14 years. This is because ISPs receiving grants would have four years to deploy the required broadband networks, and the extended period of performance lasts another 10 years... AT&T is already trying to get out of state obligations related to its basic phone service in California, as [9]we've reported ... [Also at stake is whether "ISPs themselves get to pick the price of the mandated low-cost broadband offerings," the article points out.]

The [10]letter from 30 advocacy groups to California state leaders argues accepting the money "would set a dangerous precedent for the federal government to use federal funding as a cudgel that forces states in line with its agenda... If California were to allow this funding to be used as leverage, there is no telling what other resources the administration would confidently seek to exploit."

Thursday California's Public Utility Commission [11]did vote to approve the plan , but a spokesperson earlier told Ars Technica their vote "does not address subgrantee agreements, or the conditions the NTIA requires be included in subgrantee agreements."



[1] https://arstechnica.com/tech-policy/2025/10/trump-admin-demands-states-exempt-isps-from-net-neutrality-and-price-laws/

[2] https://arstechnica.com/tech-policy/2026/09/california-may-gut-state-net-neutrality-law-to-comply-with-trump-admin-demand/

[3] https://broadbandusa.ntia.gov/sites/default/files/2026-07/BEAD_FP_Overview_CA.pdf

[4] https://arstechnica.com/tech-policy/2017/12/goodbye-net-neutrality-ajit-pais-fcc-votes-to-allow-blocking-and-throttling/

[5] https://arstechnica.com/tech-policy/2019/10/why-ajit-pais-unhinged-net-neutrality-repeal-was-upheld-by-judges/

[6] https://www.ntia.gov/funding-programs/internet-all/broadband-equity-access-and-deployment-bead-program/progress-dashboard

[7] https://cdn.arstechnica.net/wp-content/uploads/2026/09/Digital-Equity-Advocates-Letter-re_-BEAD-_-Term-50.pdf

[8] https://www.c4at.org/

[9] https://arstechnica.com/tech-policy/2026/07/att-loses-key-ruling-in-bid-to-stop-offering-basic-phone-service-in-california/

[10] https://cdn.arstechnica.net/wp-content/uploads/2026/09/Digital-Equity-Advocates-Letter-re_-BEAD-_-Term-50.pdf

[11] https://x.com/californiapuc/status/2100710284528685246



deploy broadband? (Score:3)

by MpVpRb ( 1423381 )

AFIK, ATT has NO plans to provide fiber to the entire state.

They lie and label wireless as broadband.

The law seems to be useless.

Re: (Score:3)

by drinkypoo ( 153816 )

> AFIK, ATT has NO plans to provide fiber to the entire state.

That's not relevant to net neutrality, though yes, you're right. And they have taken literally hundreds of billions of taxpayer dollars for that purpose (government grants, not customer payments) which they then clearly handed out to shareholders and/or executives because they obviously didn't spend them on last mile internet.

Re: (Score:2)

by sabbede ( 2678435 )

ATT ran fiber down the road past my subdivision 3-4 years ago, only ran it in a month or two ago, and just now started delivering fliers that say it's "coming soon".

Which is pretty fast for ATT.

Re: (Score:2)

by dsgrntlxmply ( 610492 )

AT&T buried a 240 fiber cable along the rural highway near my house a couple of years ago (I talked to one of the contractors). Meanwhile my CLEC DSL/POTS service on legacy AT&T wire becomes unusable during the rainy season. Fiber fiber everywhere, but not a strand to link.

Re: (Score:2)

by Archangel Michael ( 180766 )

Laws are useless in general.

And by the time you get AT & T to fulfill the fiber delivery, Starlink will be providing Internet at Fiber Speeds to the whole planet. Starlink V3 is coming sooner (Within months) than the snails at the terrestrial providers could imagine.

Why bother, they won't care anyway (Score:5, Interesting)

by jacks smirking reven ( 909048 )

The premise is already flawed, by putting the restriction on the funds in the first place they are already violating the law as written or at least torturing it's language to death.

The NTIA is interpreting this law in an expansive way by categorizing net neutrality rules as impermissible rate regulation and by demanding statewide exemptions from state laws for ISPs that obtain grant money.

By the rules the Trump admin plays by any state should take the money, agree to comply and once the funds are in hand give em the old "lol jk" and do net neutrality anyway. Make them sue you instead. If the admin can violate every trade agreement unilaterally and against the law what good is their word anyway?

Besides, in about 45 days the [1]makeup of the government could look very different. [votehub.com]

[1] https://votehub.com/2026-forecast/senate/

Re: Why bother, they won't care anyway (Score:1)

by angryman77 ( 6900384 )

Hadn't thought of that, but it'd probably work. Sorry Mr Trump, but you should be flattered that we pulled one of your most venerable plays from your playbook.

Does it matter? (Score:2, Interesting)

by sabbede ( 2678435 )

Has California's net neutrality law changed anything? Does it do anything? I remember how we didn't have it at a national level, then we did have it, then we didn't have it again. So far as I could tell, nothing changed.

Re: Does it matter? (Score:2, Interesting)

by Frank Burly ( 4247955 )

Do you work for a company that has been asked to pay extra so that the packets you are already paying to send reach your customers who have also already paid to be on the Internet?

Re: (Score:2)

by sabbede ( 2678435 )

No. Do you? And if so, what were the terms?

Re: (Score:2, Insightful)

by maladroit ( 71511 )

The threat of net neutrality laws has done most of the work of ensuring net neutrality.

Nobody has implemented direct charges for content delivery because that would instantly trigger a reaction when the government is working properly.

But now, with an insanely autocratic federal government? Some things may change.

Re: (Score:3)

by sabbede ( 2678435 )

Forget government, any ISP that tried it would lose all their business customers the next day. Basic economics and game theory say that won't happen.

What you're saying is that the law was never needed and remains unneeded. Thus, it never should have existed. Why force companies to waste time and money to show they are complying with a law about something they never intended to do? The only beneficiary is whoever the State pays to review compliance. Everyone else is harmed when that compliance cost g

Not changing anything was the point (Score:3, Interesting)

by rsilvergun ( 571051 )

That was the entire purpose of the law it was to maintain the status quo which is net neutrality.

The purpose of the law was to put isps on notice that they would have a fight on their hands if they started violating net neutrality. And while they have poked at the edges laws like this have mostly prevented them from doing the really nasty stuff.

What you have here is called a chesterton's fence. It is a fence that you don't take down unless you understand why it was put up. I'm not talking about net

Re: (Score:2)

by sabbede ( 2678435 )

I wouldn't seek any advice from whoever it was that fed you that conspiracy theory, unless you were just being facetious.

Anyhow, you don't put laws into effect to maintain a status quo that nobody is interested in challenging. That's a stupid reason to waste time and create unnecessary red tape. And since the law was clearly unnecessary, it should be repealed. Otherwise, it just makes things more expensive while providing no benefit. Companies have to waste time and money showing that they aren't doi

Re: (Score:2)

by snowshovelboy ( 242280 )

Amzn leo was created in part to build themselves their own fast lane.

Re: (Score:1)

by Anonymous Coward

Trump's approach to negotiation has been in the past very reactionary and completely irrational. If CA complies with this, he'll come back and tell us to stop our mail in ballots. There's really no scope to how he works.

Trump and those who support him believe in the absolute authority of the office of the President. They believe in a unitary executive. And that states are to be subordinate to the national government. Contrary to the Constitution, contrary to the essays the Framers wrote, and contrary to cen

You're mis-identifying the problem (Score:5, Informative)

by dgatwood ( 11270 )

The federal government has always (for at least several decades) used the threat of removing federal funding to force states to do things that they don't want to do. This is nothing new, and is not, as this summary implies, setting a dangerous precedent.

The difference is that normally, this is used to do things that add standards intended to make things better/safer for the general public or serve some legitimate public need.

This is being done to remove standards intended to protect the general public. As a general rule, states have always been allowed to have stricter laws than the federal government, just not more lax laws. Using the threat of removing federal funding to take away laws intended to protect the public's rights, reduce competition among content providers, and push the Internet more and more towards a content monopoly is doing the opposite of that.

It's not the federal government using the threat of withdrawing funding to push its agenda that is bad. It is the agenda itself that is bad. It is fundamentally antithetical to the rule of law, fundamentally contrary to the regulatory powers required to maintain a functioning capitalist system, and fundamentally contrary to the public interest. It is putting greedy corporations ahead of the American people.

Additionally, the executive branch taking such an action without authorization from Congress is also bad. The long history of doing this has, to my knowledge, been limited to the executive branch acting on laws passed by Congress that give them the authority to withhold funds for specific non-compliance reasons. Doing so in the absence of such laws is likely a violation of the separation of powers.

But unfortunately, the current administration has a long history of violating that separation of powers, doing various illegal acts, knowing full well that it will take months for the courts to strike down those acts, and that the damage will have been done by then, and using the threat of such illegal executive orders as a way to extort concessions out of states, government agencies, corporations, nonprofits, and individuals. And that right there — the repeated willful commission of unconstitutional acts for borderline felonious purposes — is a fundamental abrogation of their oath of office.

So the way I see it, there are only three ways to fix the problem:

A. Pass laws clarifying that Congress has exclusive power of the purse, and that the executive branch shall not retract funding to any state, any agency, or any individual for any reason unless the right to retract funding for that specific reason is explicitly codified in the relevant law as an executive power, and that this rule shall apply to all government agencies, without exception, superseding all previously assumed authority, and providing criminal liability for anyone acting in contravention of this law, with no statute of limitations. That way, federal agency heads who act on such executive orders will no longer be protected by any assumption of legality or constitutionality, and will risk future criminal charges if they act on an executive order that violates the separation of powers in this way.

B. Remove the people who are pushing this agenda, whether through the ballot box, through impeachment, or both.

C. Do both A and B.

Re: You're mis-identifying the problem (Score:2)

by angryman77 ( 6900384 )

If a Democrat was doing this sort of thing, there'd also be calls for "hanging those responsible" from the party of law and order.

How... (Score:5, Interesting)

by KILNA ( 536949 )

...is this fucking legal to withhold federal funding to strong arm states into anti-consumer policies?

Oh wait, it isn't.

Congress itself wrote into the BEAD statute that states must ensure that prospective subgrantees can carry out their projects “in compliance with all applicable Federal, State, and local laws.” And also “Nothing in this subchapter may be construed to authorize” the excutive branch's NTIA to regulate broadband. Trump is abusing a grant agreement to do something Congress explicitly declined to authorize because state laws were already expected to be a part of getting the grant money.

So, as per usual, Trump is just being a bully and making shit up.

Uh, no (Score:3, Interesting)

by rsilvergun ( 571051 )

But thanks for the useless outrage porn. They will sue and they will win because the letter of the law is pretty fucking clear here and Trump does not have the authority to do this but they will waste a huge awount of energy fighting Trump.

Voters will get angry at democrats for doing nothing but not at Republicans for actively harming the country.

This is something Democrat strategists have been complaining about. Specifically if you're a republican you can get up on stage and yell God and country! And get votes.

The exact same thing does not work for democrats. Democrat voters could care less about your religious affiliation or how stupidly patriotic you might be. Democrat voters expect results and that would be fine if the Democrats could deliver results but it's really hard to do that when the other party is actively sabotaging the country and has been since newt Gingrich created the contract with America as a unified policy of blocking the Democrats from doing any good while doing active harm whenever the Republicans happen to get any power

And because we have all been conditioned to revile partisan politics when you point this out people just dismiss it. Almost as if someone was actively trying to do that for a reason ...

I'm not a conspiracy theorist I'm a conspiracy analyst.

That is Republicans in TX (was Re:Uh, no) (Score:2)

by atrimtab ( 247656 )

Fixed that for you.

[1]https://t2m.co/yopDVU2R [t2m.co]

[1] https://t2m.co/yopDVU2R

Never invite the vampire in (Score:1)

by abulafia ( 7826 )

If you make deals with fascists, you're a suicidal sucker.

It demonstrates weakness, is interpreted as submission, and Stumpy be back with more demands. If you grow a pair you might have a fight, but probably not - he's a fucking coward, but more relevantly, he's desperate to avoid people publicly standing up to him.

The answer is "Eat shit you goofy fuckup, give us the money you're illegally withholding."

98% lean.