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Title: Trump tells states they'll lose out on broadband fund if they try to
dictate rates

Date: Wed, 06 Aug 2025 12:30:20 +0000
Link: https://www.engadget.com/general/trump-tells-...

States will lose out on their share of a $42 billion broadband fund if they
attempt to dictate rates that internet services providers (ISPs) charge low-
income customers, according to a new FAQ from the Trump administration seen
by Ars Technica. That means ISPs ΓÇö which are subsidized by the government
in order to provide low-cost plans ΓÇö will be able to set such rates under
the BEAD (Broadband Equity, Access and Deployment) program.

The new language appeared in a BEAD Restructuring Policy Notice (RPN) from
the National Telecommunications and Information Administration (NTIA) in
June. "Per the RPN, states may not apply state laws to reimpose LSCO (low-
cost service option) requirements removed by the RPN... violation would
result in rejection of the final proposal [for states to receive funds]." It
added that the the NTIA would only approve plans with low-cost rates set by
ISPs.

The new language would hand ISPs a major win if it holds up. New York state,
for one, requires ISPs with more than 20,000 customers to offer $15 broadband
plans with minimum 25Mbps download speeds, or $20 plans with 200Mbps speeds,
to low-income customers. That law, the Affordable Broadband Act, has held up
despite attempts by providers to strike it down in court.

Other states are reconsidering similar laws now. California recently withdrew
a bill requiring $15 broadband plans after the NTIA said it could lose out on
BEAD funds worth up to $1.86 billion. That decision was excoriated by
consumer groups who pointed out that the Supreme Court itself declined to
overturn New York's law.

As he's done many times now, Trump is using federal funds as a cudgel to keep
states in line ΓÇö despite the fact that states' rights are usually supported
by US courts. New York assemblymember Amy Paulin, who spearheaded the state's
$15 broadband law, said that she believes the NTIA rule only applies to the
other 49 states that don't have price mandates. "It's our understanding that
any [ISP] BEAD awardee would have to comply with the Affordable Broadband Act
regardless of federal subsidy," she told Ars Technica.

This article originally appeared on Engadget at
https://www.engadget.com/general/trump-tells-...
broadband-fund-if-they-try-to-dictate-rates-123020395.html?src=rss

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