Newsom's Broadband Cuts

In order to balance the state’s budget, California Gov. Gavin Newsom has proposed $2 billion in cuts to broadband projects that would have expanded internet access across the state. The move outraged digital equity advocates in Los Angeles who say it could jeopardize efforts to reach some of the most vulnerable groups in the area. About 200,000 LA County households don’t have internet. “We are disappointed to see this rollback,” said Cristal Mojica of the Michelson Center for Public Policy. The group is a member of the California Digital Equity Alliance. The revised budget plan would cut the $1.5 billion that was greenlit for the state’s middle-mile project in January. That’s a new public broadband network the state is building in areas with little to no coverage. It would also cut all but $50 million from the state’s credit program called the “Loan Loss Reserve Fund,” which allows groups to secure more favorable borrowing rates and terms. And it would delay funding for broadband infrastructure known as “last-mile” projects until the 2027-28 fiscal year.