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California may gut state net neutrality law to comply with Trump admin demand

Advocates say accepting the $1.4 billion grant could force California to weaken net neutrality rules and limit affordable broadband programs.

  • California utility regulators voted on Thursday to authorize staff to accept more than $1.4 billion in federal broadband funding, supporting over 80 projects serving more than 270,000 people.
  • The Trump administration's BEAD program requires states accepting funds to roll back net neutrality protections, a condition that critics argue threatens public safety and could cost Californians more than $5 billion in lost low-cost internet programs.
  • Stanford Law School professor Barbara van Schewick and Public Knowledge vice president Harold Feld urged Governor Gavin Newsom to challenge the conditions in court before finalizing the agreement. Van Schewick said accepting the terms would mean giving up net neutrality protections "for $1.4 billion" which is "mind boggling."
  • Legal expert Goodman noted California could sue in the Ninth Circuit Court before finalizing the agreement, offering "a pretty good view of success." Challenging the terms after accepting funds requires the Columbia Circuit, where it is "a much, much harder push."
  • New York recently accepted $664.6 million in BEAD funding but may now be unable to enforce its Affordable Broadband Act, which requires ISPs to offer $15- or $20-per-month service to low-income households. The precedent illustrates the stakes for California's decision.
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California is poised to get $1.4 billion for broadband. But there’s a huge catch

California’s bid for $1.4 billion in broadband funding has been five years in the making. Now the Trump administration says it must give up net neutrality and other state internet rules.

·Sacramento, United States
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California has already approved its state proposal to receive up to $1.860 million from the federal BEAD program, but funding requires that it cease to apply its network neutrality rules and other regulatory protections to certain providers for years.

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Ars Technica broke the news in Cambridge, United States on Wednesday, September 16, 2026.
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