The Trump administration is telling states they will be shut out of a $42 billion broadband deployment fund if they set the rates that Internet service providers receiving subsidies are allowed to charge people with low incomes.
The latest version of the National Telecommunications and Information Administration (NTIA) FAQ on the grant program, released today, is a challenge to states considering laws that would force Internet providers to offer cheap plans to people who meet income eligibility guidelines. One state already has such a law: New York requires ISPs with over 20,000 customers in the state to offer $15 broadband plans with download speeds of at least 25Mbps, or $20-per-month service with 200Mbps speeds.
Here are some specifics on the language…
The NTIA rules concern the Broadband Equity, Access, and Deployment (BEAD) program, which is distributing $42.45 billion to states for grants that would be given to ISPs that expand broadband access. Although the US law that created BEAD requires Internet providers receiving federal funds to offer at least one “low-cost broadband service option for eligible subscribers,” it also says the NTIA may not “regulate the rates charged for broadband service.”