Trump Threatens To Withold Billions From States That Try To Make Broadband Affordable To Poor People

from the wholesale-corruption dept

Earlier this month we noted how California was attempting to pass a new law ensuring that broadband would be affordable to poor people. The original law proposed that the biggest ISPs would need to make sure they offered speeds of at least 100 Mbps down, 20 Mbps up for $15 a month to California residents who qualify for existing low-income assistance programs. It mirrored a similar law in NY State.

Offering 100/20 Mbps service for $15 a month would only cost the state’s four largest ISPs less than 1 cent on the dollar in revenue, while providing nearly $100 million per year in savings to low-income state residents.

But the proposed law (California Affordable Home Internet Act (AB 353)) was already poised for destruction after the bill’s sponsor, Democratic California Assemblymember Tasha Boerner, introduced a whole bunch of amendments behind closed door at the behest of telecom lobbyists.

The changes not only halved the bill’s required speeds (50 Mbps down, 10 Mbps up), it ensured that ISPs really wouldn’t have to adhere to it or see any oversight whatsoever. The changes not only eliminated any requirement that the ISPs report their progress to government, it effectively eliminated the California Public Utilities Commission’s ability to regulate broadband affordability entirely.

But even if the bill had survived, the Trump administration has been taking steps to kill it anyway. Boerner (who never really addressed her own ethical collapse in the face of telecom lobbying) claims that the Trump administration is also threatening to withhold billions in already awarded infrastructure bill grant money if states try to make sure that broadband is affordable to poor people:

“But the bill was still working its way through the legislature when, according to Boerner, Trump administration officials told her office that California could lose access to $1.86 billion in Broadband Equity, Access, and Deployment (BEAD) funds if it forces ISPs to offer low-cost service to people with low incomes.”

States are about to receive $42.5 billion in broadband grants thanks to the 2021 infrastructure bill (Republicans voted against). Through the NTIA, Republicans are now rewriting much of the bill to eliminate stuff like labor rights and low-income affordability requirements. The NTIA’s new boss, a former Ted Cruz staffer, has whined that affordable fiber optic broadband is “woke.”

Republicans are also ensuring that Elon Musk gets billions of dollars for his expensive, congested Starlink satellite network, money that will be taken away from faster, more reliable, and more affordable options like local, community-owned municipal fiber networks and local cooperatives.

But this California bill was a shining example of how U.S. telecom policy (and U.S. policy more broadly) has always worked. It couldn’t survive neither state nor federal corruption, effectively dying two different deaths. Both caused by the fact that a handful of telecom monopolies literally dictate the law in a country that’s increasingly becoming too corrupt to function.

In the last six months telecom monopolies and the GOP have also killed a popular program providing $30 broadband discounts for poor people, killed efforts to provide free Wi-Fi to poor rural schoolkids, eliminated net neutrality, destroyed the FCC’s ability to hold telecom giants accountable for pretty much anything, illegally killed a law addressing very obvious racism in broadband deployment, and dismantled whatever was left of U.S. broadband privacy oversight.

This stuff is framed as “cost saving” or “government efficiency” initiatives by Republicans, but when actual researchers circle back around to crunch the numbers, they always find that no, Trump Republicans are just ignorant, corrupt, cruel assholes.

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Comments on “Trump Threatens To Withold Billions From States That Try To Make Broadband Affordable To Poor People”

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32 Comments
This comment has been deemed insightful by the community.
Anonymous Coward says:

So basically what happened was that the telco lobbyists told Assembly member Boerner “Take this down a few notches, or we’ll go federal and take it down for you”, so they obliged, took it down a few pegs, and the telcos went federal anyhow.

Bullying. It works – for awhile.

This comment has been flagged by the community. Click here to show it.

Koby (profile) says:

Running Out Of Other People's Money

Offering 100/20 Mbps service for $15 a month would only cost the state’s four largest ISPs less than 1 cent on the dollar in revenue, while providing nearly $100 million per year in savings to low-income state residents.

This is just like how the WNBA players wanted a pay raise last week, even though the league is unprofitable and is losing money. The players wanted desperately to only talk about “revenue split”, but they would cease to exist without a subsidy from the men’s NBA.

Yes, welfare handouts are popular with people who don’t pay taxes.

Anonymous Coward says:

Re: "Won't someone PLEASE think of the poor telecom providers?!"

Nevermind how much money these companies hoover up from subsidies and grants on infrastructure they’ll never build or services they’ll cut as soon as they can get away with it. No, it’s those damn poors who have it too easy!

Christ, Koby, you’ll lick any boot that’s one or more tax brackets above yours.

Anonymous Coward says:

Re:

Color me completely unsurprised that a misogynist thug like Koby would go after the terrific players in the WNBA, a league that’s rapidly gaining fans, attendance, sponsorships, advertising, and prominence — because the product they put out is very high quality.

Also, 6 WNBA franchises are owned by the same people who own NBA franchises, so absolutely nobody should be surprised that they want to see their investments do well.

Anonymous Coward says:

Re:

Koby the paragraph you quoted says they would keep over 99% of their revenue. Your crying over our modern princes potentially losing 0.whatever% is… Is just…

At some point, ‘bootlicker’ isn’t enough.
What do you call someone willing to sell out their struggling brothers and sisters so that men who already have so much can instead own everything?

Koby… you’re a modern day house negro.

Was it worth it? When you’ll still never even actually live in the house?

This comment has been flagged by the community. Click here to show it.

Koby (profile) says:

Re: Re: Re:2

Actually I don’t. The only industry for which I support subsidies are farms (There are no alternatives during a food shortage). If government gave no money to telecoms, I would be very happy. I’m not exactly sure what other industries you are suggesting with the phrase “infrastructure never built out”, but you could be right, as evidenced by other boondoggle projects like the California Rail To Nowhere, or the ITER fusion reactor.

MrWilson (profile) says:

Re: Re: Re:3

Actually you do. The entire Trump administration is a giant payoff to billionaires, including Trump. You voted for that. You can say what you nominally support, but your actions are the reality. At best you’re saying you vote against your own supposed ideals. That you’ve cheered on the Trump administration proves you are either lying or betraying your own ideals. It doesn’t matter which. You’re a hypocrite and a fascist. And again, these words mean something. They’re not just insults. You demonstrably support plutocratic authoritarianism.

MrWilson (profile) says:

Re: Re:

And property tax by proxy in their rent payments. Poor people proportionately pay more of their meager income in taxes than the wealthy do.

People who decry how much the wealthy pay in taxes are missing the fact that the wealthy can pay so much in taxes and still be wealthy because they have and make so money in the first place. And they do so by benefiting from the society that taxes pay to maintain. They’re not magnanimous or generous or humanitarian. They’re giving back a pittance of the amount they’re unethically profiteering from others.

Anonymous Coward says:

“Both caused by the fact that a handful of telecom monopolies literally dictate the law in a country that’s increasingly becoming too corrupt to function.”

Yet another reason it’s a regime over an administration, though this particular one is more bipartisan than most. Unfortunately I’m not as optimistic — there’s way more room for naked corruption before we start looking at regime collapse.

jezra says:

Boerner folded not because she cares about Californians, she folded because that BEAD money is going to her corporate sponsors.

Californians need affordable broadband far more than Boerner’s corporate sponsors need yet another massive tax-payer funded handout to ‘fix’ the problems those companies caused in the first place.

Shame on her.

This comment has been deemed insightful by the community.
Strawb (profile) says:

Re:

Being poor doesn’t mean being out of work, and internet is effectively as necessary to function in modern society as electricity and running water.

honestly why give everything to people who dont work?

We’re not talking about giving people everything; we’re talking about providing them with cheap(not free) internet.

Stephen T. Stone (profile) says:

Re:

why give everything to people who dont work?

Some disabled people can’t work a normal 9-to-5 job. For what reason should they get any support from the government⁠—local, state, or federal⁠—if they can’t earn their right to live like everyone else does?

(And if you think that question is bullshit: It’s supposed to be. But I still want to see you try to answer it without exploding from cognitive dissonance.)

Anonymous Coward says:

Re:

Im a democrat…

[[Citation needed]]

…but honestly why give everything to people who dont work?

Some people work nightshifts instead of a normal 9-to-5 job. For what reason should they get any support from the government⁠—local, state, or federal⁠—if they can’t earn their right to live like everyone else does?

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