California lawmakers are considering a bill that would require Internet service providers (ISPs) to offer affordable broadband plans to low-income households. The proposal, modeled after a similar law in New York, aims to ensure widespread access to high-speed Internet by mandating that ISPs provide 100Mbps download speeds and 20Mbps upload speeds for $15 per month, including taxes and fees.
The bill, introduced by Democratic Assemblymember Tasha Boerner, has sparked debate among broadband industry groups and state regulators, with ISPs arguing that such price mandates could lead to reduced investment in infrastructure. However, supporters say the measure is crucial for closing the digital divide, ensuring that education, telehealth, and employment opportunities are accessible to low-income Californians.
The proposed California Internet affordability bill seeks to accomplish several goals:
- ISPs must offer a $15 per month broadband plan to households that qualify for government assistance programs.
- The plan must provide at least 100Mbps download speeds and 20Mbps upload speeds.
- Service must have low latency to support distance learning, remote work, and telehealth services.
- ISPs must actively promote these plans, including clear advertising on their websites and direct outreach to eligible households.
- Companies must report annually on the number of households that purchase the affordable plans and those rejected due to eligibility issues.
- The law would take effect on January 1, 2026, with reporting requirements starting in 2027.
Boerner’s office has also suggested exempting smaller ISPs from the law’s requirements but has yet to finalize the details of such an exemption.
Inspired by New York’s Internet Law
California’s proposal follows the successful implementation of a similar law in New York, which took effect in January 2025 after a lengthy court battle with broadband providers. The New York law offers ISPs two options:
- Provide 25Mbps speeds for $15 per month.
- Provide 200Mbps speeds for $20 per month.
Unlike the New York law, California’s version mandates faster speeds for the same price. While New York does not specify an upload speed, California’s bill ensures that low-income residents receive at least 20Mbps upload speeds, which is crucial for video conferencing, file uploads, and other modern digital needs.
After the New York law was upheld by the Supreme Court, broadband industry groups warned that other states might adopt similar regulations. Now, with California moving forward, other states—including Massachusetts and Vermont—are also considering laws requiring ISPs to offer affordable high-speed Internet to low-income families.
Broadband providers and telecom industry groups have strongly opposed government-mandated pricing, arguing that:
- Forced pricing could discourage investment in network expansion.
- Low-cost plans might not be financially viable for ISPs in certain areas.
- Some providers may exit the market rather than comply, as seen when AT&T stopped offering its 5G home Internet service in New York to avoid following the law.
While AT&T pulled out of New York’s wireless broadband market, it may have a harder time doing the same in California, where it operates DSL and fiber networks and remains a carrier of last resort for landline phone services.
However, the Supreme Court’s repeated refusal to overturn New York’s law has left broadband companies with few legal options to challenge similar laws in other states.
What This Means for Low-Income Californians
If the bill becomes law, it could be a game changer for many low-income Californians who currently struggle with the high cost of Internet access. Some key benefits include:
1. Expanded Digital Access
By requiring minimum speeds of 100Mbps, the bill ensures that families have reliable, high-speed Internet for essential tasks like online schooling, remote work, and medical appointments.
2. Affordable Pricing for Essential Services
Currently, many low-income households pay significantly more than $15 per month for basic broadband. By capping costs, the bill aims to reduce financial strain and improve access to essential online services.
3. Statewide ISP Accountability
Requiring ISPs to file reports will help regulators track whether companies are complying with the law and ensure that eligible households receive the promised service.
4. Competitive Pressure on ISPs
As more states adopt similar policies, ISPs may be forced to rethink their pricing strategies and provide more competitive low-cost broadband options nationwide.
Other States Considering Similar Laws
With California moving forward, other states are also proposing affordable broadband mandates:
- Massachusetts: Considering 100Mbps speeds for $15/month or 200Mbps for $20/month.
- Vermont: Proposing 25Mbps for $15/month or 200Mbps for $20/month.
As more states explore these measures, broadband companies are pressuring Congress to intervene and prevent state-level price regulations. However, with the Supreme Court backing New York’s law, the legal groundwork appears to favor states’ rights to regulate broadband prices.
The California bill still faces hurdles before becoming law. Broadband lobbyists will likely fight against it, arguing that price regulations could stifle innovation and expansion. However, the bill has strong support among consumer advocacy groups and digital equity organizations, which argue that affordable high-speed Internet is a necessity, not a luxury.
The bill’s next steps include:
- Committee hearings and debates in the California legislature.
- Potential revisions, especially regarding small ISP exemptions.
- A final vote, expected later in 2025.
If passed and signed into law, California would become the largest U.S. state to enforce low-cost, high-speed broadband requirements, potentially setting a national precedent for digital access.
California’s $15 broadband proposal is part of a larger movement toward ensuring Internet access for all Americans. While ISPs push back against regulation, the Supreme Court’s refusal to strike down New York’s law signals that states have the power to enforce price mandates.
If passed, the California law could help millions of low-income households stay connected, reduce the digital divide, and pressure ISPs to offer better pricing nationwide.
The debate over government-mandated Internet pricing is far from over, but one thing is clear: affordable broadband is becoming a key political and economic issue, with more states likely to follow suit.
