Trump admin demands states exempt ISPs from net neutrality and price laws

The Trump administration has announced that states enforcing net neutrality and price regulations will not receive broadband deployment grants. This directive comes from a Commerce Department official who emphasized that net neutrality is viewed as a form of rate regulation, which conflicts with the legal framework of the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. Arielle Roth, a leading official at the National Telecommunications and Information Administration (NTIA), stated that any state opting to accept BEAD funds must ensure that Internet service providers (ISPs) are exempt from these regulations across the entire state, not just in areas where broadband services are being expanded. States have the option to challenge the NTIA's stance through legal action against the federal government. However, even if successful, such lawsuits could extend for years, delaying access to broadband for many underserved households. During her address at the Hudson Institute, Roth reiterated the administration's position: "In alignment with the law, which explicitly prohibits regulating broadband service rates, NTIA is clarifying that states cannot impose such regulations under the BEAD program. To safeguard the investments made through BEAD, we must ensure that providers are protected across their entire service area while within their performance period." The legislation governing BEAD requires that ISPs receiving federal funds must provide at least one low-cost broadband service option for qualifying subscribers. However, it also clearly states that the NTIA is not authorized to regulate broadband pricing, reinforcing the administration's current approach.