AI Executive Order threatens $300 million in California broadband funding

President Donald Trump’s executive order on artificial intelligence regulation threatens to withhold funding from states with what he calls onerous AI laws. That will likely include California, which has been at the forefront of advancing AI legislation and has been cited by President Trump as the kind of state that advances “burdensome” regulation. The funding he’s threatening to withhold adds up to around $300 million that was promised to California to expand broadband internet access to all Californians as part of the $42.5 billion Broadband Equity, Access, and Deployment plan. The money was allocated based on each state’s share of unconnected areas. California was allocated $1.86 billion. After a years-long process, the state submitted its final proposal in December 2025. It’s proposing to use $1.5 billion to extend internet access to the unserved areas. The $300 million remaining, called “non-deployment funds”,can be used for other projects to make internet service more accessible and affordable. “This is a huge and flexible pool of money that can be used to address all of the many facets of the digital divide,” said Drew Garner of the Benton Institute for Broadband and Society. That’s the pot of money that President Trump is threatening to withhold from states with “onerous” AI laws.