Trump admin warns states: Don’t try to lower broadband prices

The federal government has issued a strong warning to states considering price controls on broadband services, stating that they risk losing access to a substantial $42 billion fund aimed at expanding internet access. This announcement comes from the National Telecommunications and Information Administration (NTIA), which recently updated its guidelines regarding the grant program. The NTIA's latest FAQ highlights its firm stance against any state-imposed regulations that would mandate specific pricing for internet service providers (ISPs) that receive federal subsidies. Such measures aim to ensure affordable internet options for low-income individuals, but the federal agency's position poses a significant challenge to states like New York. New York has already implemented a law requiring ISPs with over 20,000 customers to provide broadband plans at $15 per month, offering speeds of at least 25 Mbps, or $20 for 200 Mbps service. Other states had looked to New York’s legal victories as a green light to pursue similar regulations. However, the Trump administration's recent warning may deter these efforts. For instance, California Assemblymember Tasha Boerner had to retract a proposed bill for $15 broadband plans after learning from NTIA officials that it could compromise the state's eligibility for broadband grants. The NTIA’s updated guidance clarifies that, while the Broadband Equity, Access, and Deployment (BEAD) program mandates at least one low-cost service option for eligible subscribers, it does not grant the agency the authority to control the pricing of broadband services. This development raises concerns about states’ ability to enact laws aimed at providing affordable internet access to their residents while navigating federal funding requirements.