The IssueS

The Cost of Living is Pricing People Out of Basic Necessities

California residents are facing a historic cost-of-living crisis, making it hard to afford food, housing, gas, and internet access.

California has the nation’s third-highest living costs behind Hawaii and Massachusetts, and nearly a third of Californians are living in poverty or near-poverty.

The Trump Administration is Undermining Digital Equity

In January, the Trump Administration began rolling back policies that protect equal opportunity—including key programs that ensure equitable and affordable access to the internet.

Impacts on Digital Equity:

  • Internet Expansion Is Stalling – Programs meant to bring broadband to underserved areas are now at risk.

  • Critical Government Data Is Disappearing – Reports that help track which areas need internet the most are being removed (i.e. FDA & CDC’s Social Vulnerability Index)

  • The FCC Is Reversing Progress – The government agency responsible for fair internet rules is set to retract protections, including:

    • Digital Discrimination Rules (which prevent internet companies from denying fast, affordable service to consumers based on who they are and where they live).

    • Wi-Fi Hotspot Access Rules (which help schools and libraries provide free internet).

  • The average one bedroom for rent in California is listed at $2,152 per month,  

  • In Salinas, average rent is $2,600 per month, 23% higher than the national average.

  • In Santa Rosa average rent is $1,895, 18% higher than the national average.

  • Grocery costs in California are about 11% higher than the national average.

  • As of February 2025, the average price for regular gas in California is $4.85, which is significantly higher than the national average of $3.16.

Losing the Affordable Connectivity Plan

Last year roughly 3 million California low-income households lost federal broadband support when the Affordable Connectivity Program (ACP) ended. Without this subsidy, these residents are now facing full-priced internet bills. 

There is no federal solution on the horizon. Under the Trump Administration, it is very unlikely the ACP program will return.

That means millions of Californians - especially low-income families, students, and seniors - will be priced out of the online world. This is unacceptable.

Recent Administration Actions:

  • Ending Diversity, Equity, Inclusion, and Accessibility (DEIA) Programs and Rules – Federal agencies, including the FCC, are no longer allowed to consider diversity, equity, inclusion, or accessibility in hiring, funding, or rulemaking.

  • Freezing Federal Funding Programs for Broadband and Digital Equity Activities – Money promised to communities to expand internet access and support communities’ digital equity activities is now on hold at least until next year, and under threat of significant modifications.In January, the Trump Administration began rolling back policies that protect equal opportunity—including key programs that ensure equitable and affordable access to the internet.

THE SOLUTION

California Must Lead on Broadband Affordability by:

Making Internet Affordable – California needs to pass laws like Assembly Bill 353 (Boerner) to ensure low-cost internet plans are available to the residents that need them most.

Holding Internet Companies Accountable – California needs to be able to quickly collect accurate broadband data from internet service providers relating to pricing, speeds, and availability. Assembly Bill 1271 (Bonta) moves the needle on this issue.

Strengthening Consumer & Community Protections – California needs to maintain existing protections that guarantee affordable connectivity, like Carrier-of-Last-Resort (COLR). We cannot let bills like Assembly Bill 470 (McKinnor) pass, which is AT&T-backed legislation that aims to eliminate the company’s COLR obligation.

BROADBAND AFFORDABILITY - What You Need to Know

The average internet bill is $98 in the most populous U.S. states. California has the 3rd highest bill at $95/month.

While many ISPs’ service offerings remain the same, broadband prices continue to go up in California, especially in low-income communities and communities of color. 

Multiple large-sample, independent studies have proved that major ISPs routinely offer faster, more affordable internet to high-income, predominantly white communities than to low income communities and communities of color in California. These practices take place across all geographies (urban, suburban, and rural).

Major ISPs like AT&T and Charter Spectrum benefit from preserving their business practices in California.

“ISPs and their trade associations spend big money in politics - their customers’ money, our money - to pass legislation they like and block legislation they don’t like, all to grow their present and future profits.”
— Common Cause

While large ISPs claim broadband affordability policies like AB 353 are “uneconomical”, they do have the financial solvency necessary to widely offer low-cost plans.

The largest ISPs in California have reported billions in profits every year for the last three years. Much of those profits goes to executive salaries/bonuses and stock buybacks, when it could benefit financially-strapped consumers.

Notably, they also brought in hundreds of millions of dollars from government subsidy programs like ACP and the Federal Funding Account (FFA). Those dollars are meant to be used to serve disconnected communities and improve their internet connectivity.

Interested in learning more about broadband affordability? Check out our resources.