California plans to accept $1.42 billion in broadband grant funding from the Trump administration, but it disputes a federal condition requiring the state to stop enforcing certain telecom laws. The restriction covers net neutrality rules and rate regulations for internet providers receiving grants through the $42 billion Broadband Equity, Access, and Deployment (BEAD) program.
The National Telecommunications and Information Administration (NTIA) set the condition last year. California officials argue the state can accept the funding without giving up its authority to enforce its laws, and say the federal demand could violate the state’s constitutional rights.
In a letter to NTIA Administrator Arielle Roth, California Public Utilities Commission President John Reynolds said the commission would not be bound by conditions it considers unconstitutional or unauthorized by law. He also said the commission cannot stop other state agencies from enforcing California law, leaving open the possibility that the attorney general could take action against internet providers.
California has reserved the right to challenge the condition. The dispute could lead to legal battles involving the state, the federal government and providers seeking grant money. The state may also delay or cancel plans to distribute broadband grants, depending on how the process develops.
Sources: Ars Technica.