California may gut its state net neutrality law to accept $1.86 billion in federal broadband grant funds. The Trump administration told states they cannot enforce net neutrality rules on any ISP receiving BEAD funding, and now the state’s public utilities commission is set to vote tomorrow on a resolution ratifying California’s final BEAD plan.
The move puts California’s long-standing protections against internet providers blocking or throttling traffic directly at risk. The administration’s demand goes beyond just the funded deployment areas — each state must exempt ISPs from net neutrality rules and price regulations across the entire state. The exemption lasts up to 14 years.
The BEAD Overhaul
The BEAD program was overhauled last year to include $42 billion. Under BEAD, each US state and territory gets an allotment distributed to ISPs for deploying broadband to unserved and underserved areas. The program was designed to bring high-speed internet to rural and low-income communities that lacked reliable service.
California and Illinois are the only states that haven’t finalized their funding, according to the NTIA-maintained BEAD progress dashboard. The Trump administration made federal broadband money conditional on state agreement not to enforce net neutrality, and the condition applies statewide, not just to the funded deployment areas.
What California’s Law Says
California’s existing net neutrality law prohibits ISPs from blocking or throttling lawful traffic. It also says ISPs may not require fees from websites or online services to deliver or prioritize their traffic to Internet users. The state fought a yearslong court battle to defend its law.
The first Trump administration lost its attempt to preempt state net neutrality laws. Now the second Trump administration is tying federal broadband money to states agreeing not to enforce them. The Trump administration’s National Telecommunications and Information Administration, or NTIA, says each state must exempt ISPs from net neutrality rules and price regulations in all parts of the state, not just funded deployment areas.
The Price of Compliance
The $1.86 billion is a large sum for California. Accepting the federal money means giving up the ability to enforce those rules against ISPs operating throughout the state. The exemption lasts up to 14 years.
The vote tomorrow at the California Public Utilities Commission will determine whether California trades its state-level protections for the federal funding. If the CPUC approves the resolution, the state will formally agree to step aside from regulating ISPs that receive BEAD money.
Who Wins Politically
The administration frames this as cutting red tape for ISPs. The deal also benefits ISPs that want to avoid state-level scrutiny. The requirement applies statewide, not just to the funded deployment areas.
What Happens Next
If the CPUC votes yes, California’s net neutrality law remains on the books in name only. The state cannot enforce it against ISPs that receive BEAD funding, and the exemption applies for up to 14 years.
The vote comes at a moment when broadband access has become a core economic issue. The administration’s approach treats net neutrality as a barrier to deployment, while California’s critics treat it as a protection against corporate abuse.
The Political Context
The administration’s position rests on its view of net neutrality as a regulatory burden. By conditioning federal broadband money on state agreement not to enforce net neutrality, the administration hopes to streamline ISP operations nationwide.
The Bottom Line
The vote is a test of whether California’s state-level protections can survive direct pressure from the federal government. The state’s public utilities commission holds the power to decide, and the decision carries real consequences for how ISPs operate within its borders.
| Party | Position | Key Move |
|---|---|---|
| Trump administration | Ties federal broadband money to states agreeing not to enforce net neutrality | NTIA demands statewide exemptions, not just deployment areas |
| California | Holds state net neutrality law | Vote tomorrow on final BEAD plan |
The Numbers
- Federal funding: $1.86 billion in BEAD grants
- BEAD total: $42 billion
- Exemption period: Up to 14 years
- States left to finalize: California and Illinois
- Program: BEAD (Broadband Equity, Access, and Deployment)
The vote is tomorrow.
Where the paper stands
The paper backs California’s longstanding net neutrality protections and is against the Trump administration’s demand that the state exempt ISPs from those rules as a condition of accepting federal broadband grant funds. The administration’s approach hands ISPs a statewide free pass in exchange for federal money, and the paper opposes that trade.
The danger here is not the technology itself but the concentration of power it locks in place. When the biggest firms ask to be regulated, the paper asks who those rules would lock out — and here the biggest firms get the exemption, not the regulation. Licensing regimes and compliance costs only giants can afford are a moat, not a safeguard. The paper wants narrow rules against direct harm, not a blanket giveaway.
California should hold its ground. The vote tomorrow at the California Public Utilities Commission determines whether the state trades its protections for a 14-year exemption. The paper wants the CPUC to reject the resolution and keep the state’s net neutrality law intact.
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