Federal Broadband Deal Threatens California's Net Neutrality Protections
The National Telecommunications and Information Administration's $1.4 billion broadband expansion grant to California comes with a condition that would strip the state of its net neutrality law, affordability safeguards, and emergency service protections for 14 years.
A federal funding agreement with California contains language requiring the state to suspend enforcement of its net neutrality law, broadband affordability requirements, and public safety protections for the duration of 14 years. Consumer advocates argue that accepting the $1.4 billion grant on these terms would ultimately cost Californians more than the infrastructure investment provides.
The Deal and Its Scope
On August 31, the National Telecommunications and Information Administration announced the $1.4 billion award to expand broadband connectivity across California. The funding comes with a stipulation that California must refrain from enforcing any law, regulation, or policy that restricts internet service providers. The ISPs receiving these funds would deploy broadband to communities they have historically underserved. The enforcement suspension would remain in effect for 14 years.
Net Neutrality Protections at Risk
California maintains one of the nation's strongest state-level net neutrality laws, modeled after the FCC's Open Internet Order. The law prohibits ISPs from blocking content, throttling speeds, implementing zero-rating schemes, or creating paid fast lanes. This framework ensures that consumers, rather than internet service providers, control their online experience. Without enforcement authority, California would lose a critical check on ISP behavior.
Affordability Safeguards
California has established multiple affordability protections that would be eliminated under the federal agreement. When the state approved the Verizon-Frontier merger earlier this year, regulators mandated that the combined company offer a $20 monthly internet plan to low-income households. The California Public Utilities Commission determined that average broadband costs in San Mateo, Oakland, Los Angeles, and San Diego reached $51 per month. Consumer Reports found in 2023 that 84% of American consumers pay at least $50 monthly for broadband service. The $30 monthly savings from the merger requirement would accumulate to billions of dollars for low-income Californians over the next decade. Without these protections, the $1.4 billion infrastructure investment becomes inaccessible to those most in need.
Emergency Services and Public Safety
California's net neutrality law serves a dual purpose by protecting both consumers and emergency responders. The throttling ban ensures reliable service for first responders during crises. In 2018, Verizon deliberately slowed firefighter communications during California's largest wildfire at that time. Fire departments subsequently backed the legislation that became California's net neutrality law. Losing enforcement capability would weaken emergency response infrastructure as climate-driven disasters intensify.
Limited ISP Competition
Most Californians lack meaningful choice among internet service providers. The state's net neutrality law represents one of the few protections against monopolistic ISP practices. Advocates contend that surrendering these protections in exchange for federal funding would leave consumers vulnerable to corporate control over their internet experience.