President Biden's Municipal Broadband Push Clashes With State Restrictions

President Biden's transformative push to expand internet service by treating broadband more like a public utility is on a collision course with laws in 17 states. And, the potential conflict is raising questions about whether his administration is willing to use federal infrastructure dollars to twist the arms of mostly Republican-run states to change laws they have on the books restricting municipal broadband projects. The states argue that these types of laws are needed to protect taxpayers and prevent government overreach. The Biden administration's view is that one way to lower broadband prices around the country and to expand service into areas where it's lacking is to get more municipalities and public utilities to begin offering high-speed internet—similar to electricity or water. In laying out Biden’s infrastructure proposals in March 2021, the administration said that local governments are under “less pressure to turn profits” than companies and would offer internet access at lower prices. And, if faced with new competition from local governments, the thinking goes that private service providers, like AT&T and Comcast, would be pushed to lower their rates. To further that vision, the Infrastructure Investment and Jobs Act spells out that states cannot exclude municipalities from getting some of $48.2 billion in the law to expand broadband service. In spite of restrictions like this, the infrastructure law says that if a state wants a share of the broadband dollars, it “may not exclude” local governments or public utilities from getting the money to expand internet service. This sets up a clash between how the federal law is intended to work and the state-level policies.