Trump Admin Pushes States to Exempt ISPs From Net Neutrality Rules
▼ Summary
– The Trump administration is withholding broadband grants from states that enforce net neutrality or price regulations, claiming they violate BEAD program law.
– States accepting BEAD funds must exempt Internet providers from net neutrality and price regulations throughout their entire service area, not just in funded regions.
– States could challenge the NTIA decisions through lawsuits, but legal processes may take years, delaying broadband access for unserved homes.
– The BEAD program law explicitly prohibits regulating broadband rates, which the NTIA cites as justification for its funding restrictions.
– Despite requiring providers to offer a low-cost broadband option, the law forbids the NTIA from authorizing rate regulation for broadband services.
The current federal administration is taking a firm stance on broadband funding, refusing to grant Broadband Equity, Access, and Deployment (BEAD) program money to states that enforce their own net neutrality or broadband price regulations. A senior Commerce Department official has clarified that any state accepting these funds must exempt Internet service providers from such rules across their entire service area, not just in regions where federal money supports network expansion. This policy stems from the interpretation that net neutrality constitutes a form of rate regulation, which the BEAD program’s authorizing legislation explicitly prohibits.
Arielle Roth, the assistant secretary leading the National Telecommunications and Information Administration (NTIA), addressed this issue during a recent speech at the Hudson Institute. She emphasized that the law forbids regulating broadband service rates, and to safeguard the substantial BEAD investment, providers must be shielded from state-level economic regulations throughout their performance period. Roth stated that recipients of BEAD funding are required to grant exemptions to providers from broadband-specific rules, including net neutrality and price controls, across their entire operational footprint within the state.
This development poses a significant challenge for states like California and New York, which have enacted their own robust net neutrality laws. While the BEAD legislation does mandate that funded providers offer a low-cost broadband option to eligible subscribers, it simultaneously bars the NTIA from regulating the prices charged for these services. The legal text is unambiguous in stating that nothing within the title authorizes the NTIA or its leadership to control broadband rates. States opposing these funding conditions could potentially file lawsuits against the federal government, though such legal battles are often protracted, potentially delaying broadband access for underserved households for years.
(Source: Ars Technica)
