California Won't Force ISPs To Offer $15 Broadband

A California lawmaker, Assemblymember Tasha Boerner, withdrew a bill that would have mandated internet service providers to offer $15 monthly plans for low-income residents. The proposed law was modeled after a New York statute that had survived legal challenges. Internet service providers exerted pressure on Boerner to alter or abandon the bill. While some concessions were made, such as reducing the required download and upload speeds, the bill continued to face opposition. Crucially, officials from the Trump administration informed Boerner's office that California could forfeit $1.86 billion in federal Broadband Equity, Access, and Deployment (BEAD) funds if the law forced ISPs to offer subsidized service. This funding is designated for expanding broadband access across the state. New guidance from the National Telecommunications and Information Administration (NTIA) prohibits states from dictating the pricing of low-cost service options for entities receiving BEAD funds. Boerner stated that simply applying for BEAD funds would exempt ISPs from her bill, and she was unwilling to risk losing the substantial federal allocation. Consequently, she halted the effort to pass the $15 broadband mandate. Meanwhile, another California Senate bill aims to encourage, rather than require, affordable broadband by offering Lifeline subsidies to ISPs that provide specific speed tiers at a lower price point.