# California Signs Broadband Award, Challenges Limits on State Rules

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/48408
Published: 2026-11-04T10:41:32.000Z
Updated: 2026-11-04T10:41:32.000Z
Section: Regulation

> The state’s revised plan proposes $1,415,047,585 for 83 projects. Provider agreements depend on resolving any disagreement over the federal condition.

The California Public Utilities Commission (CPUC) submitted a signed federal broadband award on Nov. 2 while challenging terms that would restrict state enforcement against funded providers, making provider agreements conditional on resolving any disagreement.

The commission sent the signed Notice of Award to the National Telecommunications and Information Administration (NTIA) and the National Institute of Standards and Technology. The award is part of the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program, which funds broadband projects nationwide.

Section 50 of the award terms requires California to commit to withholding enforcement of specified rules on broadband rates, service terms, net neutrality, open access and utility-style regulation against funded providers and their affiliates. The restriction reaches their services throughout California, including locations outside federally funded projects.

It applies while a provider has any subgrant in its performance, extended-performance or federal-interest period. The terms define net neutrality rules to include restrictions on blocking content, throttling speeds, imposing data caps and giving paid priority to some traffic.

CPUC President John Reynolds called Section 50 “vague and ambiguous” about its scope and its relationship to the federal law governing BEAD. That law requires states to ensure prospective subgrantees can carry out funded work in compliance with applicable federal, state and local laws. The award terms separately require the grant recipient, subgrantees and contractors to comply with applicable laws.

The CPUC reserved its legal arguments when it signed the award. Its letter also stated that the signature did not limit other California agencies’ authority to enforce state law.

California’s revised plan lists $1,415,047,585 in proposed awards for 83 proposed projects expected to reach 269,322 locations. It allocates $1,338,487,044 to terrestrial projects expected to reach 196,385 locations and $76,560,541 to satellite projects expected to reach 72,937 locations. The plan also lists $861,039,067 in matching funds.

The CPUC will sign provider subgrant agreements if it and NTIA resolve any disagreement over Section 50 and all other applicable conditions are met.