California May Remove Net Neutrality Law to Comply With Trump Grants

The Trump administration’s broadband grant program has been revised to prohibit states from enforcing net‑neutrality regulations, a move that could reshape how internet service providers (ISPs) manage traffic across the country. Under the new policy, the Federal Communications Commission (FCC) will oversee the distribution of federal funds for broadband infrastructure, but will explicitly forbid recipients from imposing state‑level net‑neutrality rules. The change follows a broader trend of the administration’s efforts to reduce regulatory oversight of ISPs and to streamline the rollout of high‑speed internet in underserved areas.

The policy shift was announced in a series of FCC rules issued in late 2023, which clarified that grant recipients must comply with federal net‑neutrality standards—currently nonexistent under the Trump administration’s repeal of the 2015 rules—while explicitly rejecting any state‑mandated net‑neutrality requirements. Critics argue that the move could allow ISPs to engage in traffic‑management practices that may disadvantage certain content providers, potentially undermining consumer protections that were in place during the Obama era. Supporters contend that removing state‑level mandates will accelerate broadband deployment by reducing regulatory complexity for both providers and local governments.

If implemented, the new grant guidelines could have a ripple effect on the broader regulatory landscape, as states that previously relied on net‑neutrality provisions to curb ISP practices may need to seek alternative legal avenues. The FCC’s decision underscores the administration’s commitment to a less regulated broadband environment, while also raising questions about the balance between federal oversight and state‑level consumer protections in the rapidly evolving digital economy.