California risks losing its pioneering net neutrality and broadband affordability laws after a new federal funding deal requires the state to block enforcement of restrictions on internet service providers for 14 years.
- Federal deal blocks California from enforcing net neutrality and affordability laws.
- $1.4 billion broadband funding tied to 14-year ban on restrictions for ISPs.
- Public safety protections at risk as throttling bans could be removed.
What happened
In August 2026, the National Telecommunications and Information Administration announced it was awarding California $1.4 billion to improve broadband infrastructure and expand internet accessibility across the state. However, a critical provision in the funding agreement requires California to refrain from enforcing any state laws or policies that restrict or regulate internet service providers (ISPs) for a period of 14 years.
This effectively means that the state must abandon its widely praised net neutrality law—one of the few in the country at the state level—along with broadband affordability regulations and public safety measures. ISPs, some of which have underserved large segments of the population, will receive funding without being subject to California’s established regulatory protections.
Why it matters
California’s net neutrality law prevents ISPs from engaging in harmful practices such as blocking, throttling, paid prioritization, and zero-rating, thereby ensuring that consumers maintain control over their internet experience rather than corporations. Losing enforcement of this law would give ISPs unchecked power to control how Californians access online content.
Moreover, affordability protections, such as a mandated $20 low-income internet plan tied to the recent Verizon-Frontier merger, help ensure broadband remains financially accessible amid high average costs. Public safety is also at stake, as net neutrality protections have prevented throttling of emergency services, which previously hindered firefighters combating the state's largest wildfires. Removing these safeguards could lead to higher costs for residents and endanger critical emergency response capabilities.
What to watch next
Governor Gavin Newsom’s response will be crucial as he decides whether to accept the federal funds under these conditions. Advocates are urging the Governor to reject the provision that forces the state to give up its net neutrality, affordability, and public safety laws, arguing that the long-term costs and risks outweigh the immediate infrastructure investment benefits.
Ongoing monitoring of the implementation of this deal, and any subsequent legal or political challenges, will be important. The outcome in California may also influence other states’ approaches to broadband regulation and federal funding conditions, especially as broader national debates about internet governance and telecom regulation continue.