California Budget Cuts Exacerbate Digital Divide

California Budget Cuts Exacerbate Digital Divide

Quintin Lévesque
1 min read

California Governor Cuts $2 Billion from Broadband Budget, Affecting Millions

In a move to address a $27.6 billion budget deficit, California Governor Gavin Newsom has announced a $2 billion cut from the state's broadband budget. This decision will significantly impact the Middle-Mile Broadband Initiative, the Broadband Loan Loss Reserve Fund, and the Affordable Connectivity Program. As a result, 2.9 million low-income families in California enrolled in the Affordable Connectivity Program will face challenges in accessing affordable internet services.

Key Takeaways

  • Governor Newsom slashes $2 billion from California's broadband budget to address a significant budget deficit
  • 2.9 million enrollees in the Affordable Connectivity Program will be affected by this budget cut
  • The Middle-Mile Broadband Initiative and the Broadband Loan Loss Reserve Fund will also be impacted, potentially hindering broadband expansion efforts


The reduction in funding for the Middle-Mile Broadband Initiative, aimed at installing 10,000 miles of fiber-optic cable, will lead to delays in improving broadband infrastructure. Additionally, the cut to the Broadband Loan Loss Reserve Fund will hamper local governments, tribes, and nonprofits in their efforts to expand broadband access. This decision is expected to widen the digital divide, especially for low-income and underserved communities in California.

Did You Know?

  • Middle-Mile Broadband Initiative: This $5 billion project aims to enhance broadband internet infrastructure in California by installing over 10,000 miles of fiber-optic cable. The budget cut is likely to impact the completion of this crucial project.
  • Broadband Loan Loss Reserve Fund: Designed to support broadband infrastructure projects, this fund will face limitations due to the budget cut, potentially slowing down broadband expansion efforts.
  • Affordable Connectivity Program (ACP): With the program running out of funds by the end of May, millions of enrolled residents will face challenges in affording internet services, posing a significant impact on low-income families.

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