California Accepts $1.42B Broadband Grant, Rejects Trump Demand to Drop Net Neutrality

California has agreed to accept $1.42 billion in broadband grant funding from the Trump administration, but it has rejected the federal demand that the state stop enforcing its net neutrality law and other telecom regulations. The state’s refusal could lead to multiple legal battles among California, the federal government and internet providers that rely on government funds.

California has told the federal government it will take the money, but it is reserving the right to challenge the condition that it must abandon its net‑neutrality and other regulatory rules. Depending on how the dispute unfolds, the state could delay or cancel its plans to distribute the broadband grants.

Last year the National Telecommunications and Information Administration (NTIA) decided that states receiving money from the $42 billion Broadband Equity, Access, and Deployment (BEAD) program must agree not to enforce any rate regulation or net‑neutrality rule on ISPs. California had to decide whether to accept its share of the fund despite that restriction.

California is slated to spend the $1.42 billion to deploy broadband to 270,571 locations, and it may ultimately receive up to $1.86 billion from BEAD for a mix of deployment and non‑deployment projects.