California Accepts Federal Broadband Cash, Rejects Regulatory Concessions
State officials secured $1.42 billion in BEAD funds while formally reserving the right to challenge federal conditions on net neutrality.
By Nour Haddad ·
California is proceeding with the receipt of $1.42 billion in federal broadband grants while refusing to abandon its existing telecom regulations.
The state has formally accepted the funding from the National Telecommunications and Information Administration, but it is simultaneously contesting the requirement that states stop enforcing net neutrality laws for recipient providers. This stance creates a potential legal conflict between state and federal authorities over the $42 billion Broadband Equity, Access, and Deployment program.
Last year, the NTIA established a condition for the grant money. States must agree not to enforce rate regulation or net neutrality rules on Internet service providers that receive the funds. California officials argue this federal demand infringes on the state's constitutional rights to regulate its own utilities.
CPUC President John Reynolds addressed Assistant Secretary of Commerce Arielle Roth in a letter sent on Tuesday. Reynolds stated that the commission is not bound by terms it considers unconstitutional or unauthorized by law. He wrote that the CPUC expressly does not waive or concede any arguments concerning the legality of the federal conditions.
The letter clarifies that while the CPUC manages the grants, other state agencies retain their powers. The state attorney general will maintain the authority to penalize Internet providers for violations of state law. This division of roles suggests the state will continue to enforce its rules even as it distributes the federal dollars.
The state has told the federal government it will accept the money but reserves the right to challenge the imposed conditions. Depending on the outcome of potential legal battles, California may delay or cancel specific plans to distribute the broadband grants.
