California faces net neutrality waiver to unlock $1.86 billion federal broadband grant

California is poised to secure $1.86 billion in federal broadband grant money through the BEAD program, but the Trump administration has tied the funding to a condition that states relinquish net-neutrality and rate-regulation authority over any ISP receiving the aid. This stipulation reverses a prior court victory that upheld California's state net-neutrality law, which prohibits blocking, throttling, or paid prioritization of lawful traffic.

The NTIA clarifies that the exemption would extend statewide for up to 14 years, regardless of where the funded service is deployed. To date, only California and Illinois remain without finalized BEAD plans, according to the NTIA dashboard. The California Public Utilities Commission is scheduled to vote tomorrow on a resolution that would ratify the state's final BEAD plan, effectively deciding whether to suspend its net-neutrality protections in exchange for the grant.