California backs down to Trump admin, won’t force ISPs to offer $15 broadband

In a significant shift, a California lawmaker has decided to pause legislation that would have mandated Internet service providers (ISPs) to offer low-income residents broadband plans priced at $15 per month. Assemblymember Tasha Boerner, who spearheaded the initiative, aimed to model the bill after a similar law in New York that has faced its own legal battles. Initially, the legislation appeared to have a clear path forward, especially after the Supreme Court dismissed challenges to New York's broadband pricing law on two occasions. However, as the bill progressed through the California legislature, Boerner encountered mounting pressure from various ISPs to either amend or withdraw the proposal. In response to the pushback, amendments were made, such as reducing the required download speeds for the $15 plan from 100 Mbps to 50 Mbps and the upload speeds from 20 Mbps to 10 Mbps. Despite these adjustments, the bill continued to face obstacles. Recently, Boerner revealed that officials from the Trump administration warned her office about potential repercussions, stating that California could forfeit access to approximately $1.86 billion in Broadband Equity, Access, and Deployment (BEAD) funds if the state insisted on low-cost service mandates for ISPs. This funding represents California's share of a substantial $42.45 billion allocated by Congress to enhance broadband access nationwide. The situation was further complicated when the Trump administration revised the rules governing these grants, effectively prohibiting states from dictating the pricing for low-cost broadband options. Although the legislation aimed to ensure affordable internet access, the federal guidance from the National Telecommunications and Information Administration (NTIA) now restricts states from setting rates for low-cost service options. This development underscores the ongoing tension between state regulations and federal oversight, particularly as ISPs exert influence over broadband affordability policies. The Trump administration's intervention is seen as a strategic move to limit state authority in regulating internet pricing, despite previous court rulings that seemed to bolster such state-level initiatives.