Free Market Think Tank Sees Legal Problem with State Affordability Laws

WASHINGTON, April 18, 2025 – State broadband legislation to regulate the monthly price of broadband access for low-income customers could violate the Constitution, according to Seth Cooper, Director of Policy Studies and Senior Fellow at the Free State Foundation.

Cooper argued against California Assembly Bill 353 and Massachusetts Senate Bill 2318 in a Thursday whitepaper, asserting that the bills risk violating the Supreme Court’s regulatory Takings Clause doctrine.

“A reasonable case can be made that state laws that regulate rates, and thereby restrict broadband providers’ ability to set prices for their services in the free market, constitute a regulatory taking under Supreme Court jurisprudence,” Cooper said, referencing the 1897 Supreme Court case Chicago, Burlington, & Quincy Railroad Company v. Chicago.

Cooper urged states to consider alternatives to the new broadband legislation after the demise of the Affordable Connectivity Program, which provided $30 discounts on internet bills to millions of Americans before spending the last of its funds on May 31, 2024. 

Cooper specifically mentioned that states could increase subsidies for low-income households, promote existing broadband affordability programs, and encourage competitive market conditions as alternatives.

Cooper said a hearing on California’s proposed bill is reportedly scheduled for April 30, 2025. The Massachusetts bill has been referred to the state’s Joint Telecommunications, Utilities and Energy Committee, where it is awaiting further review.