The mystery of who and what killed the California Affordable Home Internet Act is coming into view.

As a California lawmaker hinted when the bill was abruptly withdrawn in June, the evidence seems to be pointing to the new leadership now directing the National Telecommunications and Information Administration (NTIA) – the agency administering the $42.5 billion federal BEAD program to expand Internet access.

In a recently released FAQ published by the NTIA this week, a corroborating clue has emerged.

And what may be the smoking gun is a bullet buried on page 48, under section 3.29, after the question: "May an Eligible Entity (states) require a specific rate for the low-cost service option (LCSO) when required by state law?”

NTIA's answer:

“No. The IIJA prohibits NTIA or the Assistant Secretary from engaging in rate regulation. Because the Assistant Secretary must approve the LCSO in the Final Proposal, the rate contained may not be the result of rate regulation. The RPN (Restructuring Policy Notice) addressed this fundamental flaw in the BEAD NOFO. The RPN eliminated BEAD NOFO requirements dictating price and other terms for the required low-cost service option.”

“Per the RPN, states may not apply state laws to reimpose LCSO requirements removed by the RPN. More specifically, the RPN ‘prohibits Eligible Entities from explicitly or implicitly setting the LCSO rate a subgrantee must offer’ (BEAD Restructuring Policy Notice, p.7). Violation would result in rejection of the Final (BEAD) Proposal (emphasis added).”

Last week, a California Assemblymember who had sponsored legislation for a broadband affordability law abruptly withdrew the legislation. 

But what really killed the broadband affordability bill in California? Was it opposition to the proposed legislation from within the state or pressure from the Trump administration?

The Bill Was Advancing Until…

Modeled on New York’s Affordable Broadband Act (ABA), the California Affordable Home Internet Act was first introduced in January. It aimed to require Internet service providers that operate in the Golden State to offer a $15 per month broadband service plan for income-eligible households.

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The proposed legislation was introduced as AB 353 by Assemblymember Tasha Boerner and was initially supported by the California Alliance for Digital Equity (CADE).

Over the intervening months, CADE and proponents of the bill offered resources and recommendations on how the bill could be made more effective than the ABA, hoping to avoid the pitfalls that advocates were seeing with the rollout and implementation of New York’s law.

On June 4, the California bill advanced through the state Assembly and moved on to the state senate by a 52-17 margin.

In the wake of the Trump administration’s re-writing the rules around how federal funds can be spent to expand high-speed Internet access, state broadband offices are in the midst of revamping their broadband deployment grant programs to comply with a “technology-neutral” framework recently imposed on the $42.5 billion federal BEAD (Broadband Equity, Access, and Deployment) program.

Though most states hoped to maximize federal grant funding to build fiber networks, the new guidance released by NTIA in June requires states to ignore the aim of Congress enacted under the bipartisan infrastructure law.

The new NTIA rules call for states to de-prioritize fiber and give equal weight to Low Earth Orbit (LEO) satellite technologies – something many observers see as a gift to Starlink and a way for the President’s biggest campaign contributor to hoover up additional subsidies.

As states wrestle with how to re-do their scoring rubrics used to determine grant awards, today four leading broadband deployment scholars working with the X-Lab released an analysis that may help state broadband offices evaluate “the capacities and saturation limits of the Starlink satellite infrastructure.”

The overarching goal is to help states determine where – and if – Starlink can meet federal requirements for broadband, which is defined as delivering minimum connection speeds of at least 100 Megabits per second (Mbps) download and 20 Mbps upload.

For decades U.S. broadband policymaking has been plagued by inaccurate and badly-managed data that has significantly harmed efforts to not just track U.S. broadband deployment, but ensure that billions in taxpayer dollars are being wisely spent to address the problem.

From inaccurate broadband mapping data and an over-reliability on industry-provided coverage claims, to inconsistent broadband definitions and patchwork federal oversight, a new study by the Pew Charitable Trusts examined decades of U.S. broadband policy, and data analysis and found plenty of room for improvement.

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According to a 2022 Government Accountability Office (GAO) report, there have been 133 programs across 15 federal agencies supporting and funding U.S. broadband deployment efforts, propped up by more than $44 billion in taxpayer dollars from 2015 to 2020 alone.

ILSR studies have historically shown those funds haven’t always been spent wisely; often being dumped into the laps of the very same regional telecom monopolies whose attacks on competition and government oversight resulted in substandard access in the first place.

There’s billions more waiting in the wings: as part of the 2021 American Rescue Plan Act (ARPA), $25 billion was specifically earmarked for broadband expansion.

Trump administration changes to the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grant program are poised to introduce years of potential new delays to the already slow-moving program, potentially undermining the program’s goal of bringing universal broadband access to mostly rural communities.

Worse, the looming changes would eliminate efforts to ensure taxpayer-funded broadband is affordable for low-income Americans, while driving billions in new subsidies to the world’s richest man and Trump mega donor Elon Musk.

Testifying this week before a Senate Appropriations Committee, Commerce Secretary Howard Lutnick confirmed that the National Telecommunications and Information Administration (NTIA) will "soon" issue a new Notice of Funding Opportunity (NOFO) that states will have 90 days to respond to.

The revisions will ensure that billionaire Elon Musk – and his capacity-constrained satellite broadband network Starlink – will receive significantly more taxpayer money. Such Low-Earth orbit satellite networks were slated to get some funds, but federal changes may result in them dominating grant funding, overruling the mix of technology states had originally preferred.

Other changes being implemented include elimination of provisions ensuring affordable access for low-income Americans.

Congressional Republicans are moving forward on a plan to kill a popular Federal Communications Commission (FCC) program providing free Wi-Fi to schoolchildren. Critics of the repeal say it’s a “cruel” effort that will undermine initiatives to bridge the affordability and access gap for families long stuck on the wrong side of the digital divide.

The effort, spearheaded by Texas Republican Senator Ted Cruz, leverages the Congressional Review Act to roll back FCC changes to E-Rate, a government program that helps subsidize deployment of broadband access to rural communities, libraries, and schools.

Accelerated by the remote education boom of pandemic lockdowns, communities country wide had petitioned the FCC to expand the program. The goal: allowing rural schools to leverage E-Rate funding to provide free mobile Wi-Fi hotspots to families that either couldn’t afford broadband – or found broadband entirely out of reach.

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So in July 2024 the FCC voted to expand the program. Historically, E-Rate could only be used to improve access on school or library grounds. The expansion allowed schools to provide limited access to free Wi-Fi hotspots via school buses or other alternatives. The expansion did not involve an increase in the E-Rate budget or any new taxes on U.S. residents. It recognized that the concept of “school” had eclipsed the 20th century definition of a room in a community building.

“I believe every library and every school library in this country should be able to loan out Wi-Fi hotspots to help keep their patrons and kids connected,” former FCC boss Jessica Rosenwocel said when the reforms were announced. “It is 2024 in the United States. This should be our baseline. We can use the E-Rate program to make it happen.”

A new provider named Halo Fiber is hoping to leverage hundreds of millions in recent Alabama middle mile broadband network grants to extend affordable fiber broadband to state residents long stuck on the wrong side of the digital divide.

The new provider says it’s not quite ready to reveal full launch details (including target markets, speeds, or pricing), but told ILSR it should enter its first four fiber markets later this year thanks in part to a flood of American Rescue Plan Act (ARPA) funding in the state.

“We will be releasing pricing and target markets early this summer in May or June,” Halo Co-founder and CEO Brian Snider told ILSR. “Speeds are still being finalized as well but they will be symmetrical from 250 up and down to multi gig options.”

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Halo says its primary focus will be to partner with public and private entities to build fast and affordable broadband networks, empower access to better education, telehealth, and economic opportunities, and ensure quality customer service in neglected markets.

“Ten years ago, myself and other members of the Halo team worked on an initiative that identified infrastructure gaps across the entire state,” Snider said in additional comments to BamaBuzz.

“We found that was a big gap in middle mile connectivity – especially in Alabama’s Black Belt where there was almost no high speed infrastructure,” he added.

Nearly a fifth of Alabama residents – or just over a million people – lack access to reliable high speed Internet.

The $42.5 billion federal Broadband Equity, Access, and Deployment (BEAD) grant program is facing what appears to be a significant overhaul as the new administration aims to alter, among other things, one of program’s key tenets: a preference for building fiber networks.

Meanwhile, a new ILSR policy brief – “BEAD Should Continue to Prioritize Fiber Internet Network Investments” – makes the case for why “these changes would repeat past policy mistakes and waste billions of dollars while delivering subpar Internet access to rural families at much higher prices.”

The brief then describes why fiber networks should continue to be prioritized:

“In designing BEAD, Congress recognized that it was foolish to spend thousands of dollars per home every 5-10 years to deliver obsolete connections and chose instead to build fiber optic networks that will last generations – ultimately both saving taxpayer dollars and delivering an equitable Internet access option to millions of rural homes.”

And while the policy brief points to important long-term consequences that should be considered to ensure rule changes don’t squander a “generational investment” by building “something more temporary and inferior to the services found on every street in urban and suburban areas,” the brief does not argue that other technologies should not be a part of the mix.

“To be clear, BEAD’s priority for fiber does not bar the use of other technologies when appropriate. In cases where the cost of fiber is simply too great, other technologies are on the table – likely wireless options of both terrestrial and low-earth orbit,” the brief says.

After decades of redlining and broadband “digital discrimination” by the nation’s biggest telecom monopolies, the FCC finally began taking aim at the problem in 2023. Now the entirety of those efforts are poised to be dismantled, courtesy of the Trump administration’s broad, controversial frontal assault on discrimination reforms and civil rights.

The 2021 infrastructure bill set aside $42.5 billion to expand broadband into all unserved parts of the United States.

But it also tasked the FCC with crafting new rules taking aim at “digital discrimination.” On November 15th of 2023 the agency obliged, passing rules banning ISPs from broadband discrimination based on income, race, or religion.

Civil rights and digital equity activists were split on the potential impact of the rules, but they did agree on one thing: it was historic for federal policymakers to finally admit that telecom monopoly deployments had unfairly excluded many low income and minority neighborhoods from affordable, next-generation broadband access.

With uncertainty swirling around the future of BEAD and Digital Equity Act programs in the wake of an Executive Order by the Trump administration freezing federal funding and loan programs, the next Building for Digital Equity (#B4DE) live stream is shaping up to be perhaps the most monumental one to date.

“Charting the Course: Adapting to Policy Shifts While Keeping Our Eyes on the Prize” promises to bring hundreds of digital inclusion practitioners together for the increasingly popular virtual gathering that aims to offer insights and ground-truth on how communities continue to their work in closing the digital divide at a time when the programs established to do so have been tossed into disarray.

Registration is now open here.

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Slated for March 13 from 3 to 4:15 pm ET, the upcoming live stream will once again be co-hosted by ILSR’s Community Broadband Networks Initiative and the National Digital Inclusion Alliance (NDIA) and sponsored by UTOPIA Fiber.