Business
Column: After a years-long pause, the FCC resurrects 'network neutrality,' a boon for consumers
In the midst of its battle to extinguish the Mendocino Complex wildfire in 2018, the Santa Clara County Fire Department discovered that its internet connection provider, Verizon, had throttled their data flow virtually down to zero, cutting off communications for firefighters in the field. One firefighter died in the blaze and four were injured.
Verizon refused to restore service until the fire department signed up for a new account that more than doubled its bill.
That episode has long been Exhibit A in favor of restoring the Federal Communications Commission’s authority to regulate broadband internet service, which the FCC abdicated in 2017, during the Trump administration.
This is an industry that requires a lot of scrutiny.
— Craig Aaron, Free Press, on the internet service industry
Now that era is over. On Thursday, the FCC — now operating with a Democratic majority — reclaimed its regulatory oversight of broadband via an order that passed on party lines, 3-2.
The commission’s action could scarcely be more timely.
“Four years ago,” FCC Chair Jessica Rosenworcel observed Thursday as the commission prepared to vote, “the pandemic changed life as we know it. … Much of work, school and healthcare migrated to the internet. … It became clear that no matter who you are or where you live, you need broadband to have a fair shot at digital age success. It went from ‘nice to have’ to ‘need to have.’ ”
Yet the commission in 2017 had thrown away its own ability to supervise this essential service. By categorizing broadband services as “information services,” it relinquished its right to address consumer complaints about crummy service, or even collect data on outages. It couldn’t prevent big internet service providers such as Comcast from favoring their own content or websites over competitors by degrading the rivals’ signals when they reached their subscribers’ homes.
“We fixed that today,” Rosenworcel said.
The issue the FCC addressed Thursday is most often viewed in the context of “network neutrality.” This core principle of the open internet means simply that internet service providers can’t discriminate among content providers trying to reach your home or business online — they can’t block websites or services, or degrade their signal, slow their traffic or, conversely, provide a better traffic lane for some rather than others.
The principle is important because their control of the information highways and byways gives ISPs tremendous power, especially if they control the last mile of access to end users, as do cable operators such as Comcast and telecommunications firms such as Verizon. If they use that power to favor their own content or content providers that pay them for a fast lane, it’s consumers who suffer.
Net neutrality has been a partisan football for more than two decades, or ever since high-speed broadband connections began to supplant dial-up modems.
In legal terms, the battle has been over the classification of broadband under the Communications Act of 1934 — as Title I “information services” or Title II “telecommunications.” The FCC has no jurisdiction over Title I services, but great authority over those classified by Title II as common carriers.
The key inflection point came in 2002, when a GOP-majority FCC under George W. Bush classified cable internet services as Title I. In effect, the commission stripped itself of its authority to regulate the nascent industry. (Then-FCC Chair Michael Powell subsequently became the chief Washington lobbyist for the cable industry, big surprise.)
Not until 2015 was the error rectified, at the urging of President Obama. Broadband was reclassified under Title II; then-FCC Chair Tom Wheeler was explicit about using the restored authority to enforce network neutrality.
But that regulatory regime lasted only until 2017, when a reconstituted FCC, chaired by a former Verizon executive Ajit Pai, reclassified broadband again as Title I in deference to President Trump’s deregulatory campaign. The big ISPs would have geared up to take advantage of the new regime, had not California and other states stepped into the void by enacting their own net neutrality laws.
A federal appeals court upheld California’s law, the most far-reaching of the state statutes, in 2022. And although the FCC’s action could theoretically preempt the state law, “what the FCC is doing is perfectly in line with what California did,” says Craig Aaron, co-CEO of the consumer advocacy organization Free Press.
The key distinction, Aaron told me, is that the FCC’s initiative goes well beyond the issue of net neutrality — it establishes a single federal standard for broadband and reclaims its authority over the technology more generally, in ways that “safeguard national security, advance public safety, protect consumers and facilitate broadband deployment,” in the commission’s own words.
Although Verizon’s actions in the 2018 wildfire case did not violate the net neutrality principle, for instance, the FCC’s restored regulatory authority might have enabled it to set forth rules governing the provision of services when public safety is at stake that might have prevented Verizon from throttling the Santa Clara Fire Department’s connection in the first place.
Until Thursday, the state laws functioned as bulwarks against net neutrality abuses by ISPs. “California helped discourage companies from trying things,” Aaron says. Indeed, provisions of the California law are explicit enough that state regulators haven’t had to bring a single enforcement case. “It’s been mostly prophylactic,” he says — “telling the industry what it can and can’t do. But it’s important to have set down the rules of the road.”
None of this means that the partisan battle over broadband regulation is over. Both Republican FCC commissioners voted against the initiative Thursday. A recrudescence of Trumpism after the November election could bring a deregulation-minded GOP majority back into power at the FCC.
Indeed, in a lengthy dissenting statement, Brendan Carr, one of the commission’s Republican members, repeated all the conventional conservative arguments presented to justify the repeal of network neutrality in 2017. Carr painted the 2015 restoration of net neutrality as a liberal plot — “a matter of civic religion for activists on the left.”
He asserted that the FCC was then goaded into action by President Obama, who was outspoken on the need for reclassification and browbeat Wheeler into going along. Leftists, he said, “demand that the FCC go full-Title II whenever a Democrat is president.”
Carr also depicted network neutrality as a drag on profits and innovation in the broadband sector. “Broadband investment slowed down after the FCC imposed Title II in 2015,” he said, “and it picked up again after we restored Title 1 in 2017.”
Carr chose his time frame very carefully. Examine the longer period in which net neutrality has been debated at the FCC, and one finds that broadband investment crashed after a Republican-led FCC reclassified broadband as an information service in 2002, falling to $57 billion in 2003 from $111.5 billion in 2001.
Investment did decline between 2015, when net neutrality rules were reinstated, and 2017, when they were rescinded — by a minuscule 0.8%. It hasn’t been especially robust since then — as of 2002 it was still running at only about 92% of what it had been two decades earlier.
As the FCC observed in Thursday’s order, “regulation is but one of several factors that drive investment and innovation in the telecommunications and digital media markets.”
The commission cited consumer demand and the arrival of new technologies, among others. Strong, consistent regulation, moreover, opens the path for new competitors with new ideas and innovations — and can bring prices down for users in the process.
The truth is that network neutrality has been heavily favored by the public, in part because examples of ISPs abusing their power were not hard to find. In 2007, Comcast was caught degrading traffic from the file-sharing service BitTorrent, which held contracts to distribute licensed content from Hollywood studios and other sources in direct competition with Comcast’s pay-TV business.
In 2010, Santa Monica-based Tennis Channel complained to the FCC that Comcast kept it isolated on a little-watched sports tier while giving much better placement to the Golf Channel and Versus, two channels that compete with it for advertising, and which Comcast happened to own. The FCC sided with the Tennis Channel but was overruled by federal court.
Even barring a change at the White House, the need for vigilant enforcement will never go away; ISPs will always be looking for business models and manipulative practices that could challenge the FCC’s oversight capabilities, especially as cable and telecommunications companies consolidate into bigger and richer enterprises and combine content providers with their internet delivery services.
“This is an industry,” Aaron says, “that requires a lot of scrutiny.”
Business
Oil Prices Rise as Investors Weigh Cease-Fire Extension
Oil prices rose and stocks moved slightly higher on Wednesday as investors tried to make sense of President Trump’s decision to extend the cease-fire with Iran despite doubts about the status of another round of peace talks.
An adviser to Mohammad Bagher Ghalibaf, the influential speaker of the Iranian Parliament, dismissed the cease-fire announcement, saying that it had “no meaning.” He equated the U.S. naval blockade with bombings, with commercial vessels coming under attack near the Strait of Hormuz, the crucial shipping lane that has been at the center of a growing energy crisis.
Business
Contributor: ICE raids and migrant pay cuts are devastating California economies
Along the southern stretch of California’s Central Coast, President Trump’s crusade against immigrants has left a visceral mark. It seems these days that almost everyone there has seen or felt the aftermath of an immigration raid: cars with shattered windows left idling and businesses emptied of their usual employees and patrons. The human toll is stark. Raids around Christmas removed at least 100 people from our communities, leaving children without parents and families without primary earners — creating crises that cascade far beyond the moment of enforcement.
The economic consequences of Immigration and Customs Enforcement raids are equally severe. Recent farmer surveys have shown that immigration raids and the fear they generate have caused farmworker shortages, particularly in labor-intensive crops such as strawberries — the region’s most valuable agricultural commodity — where fruit rots on the plant without the immigrant workers who pick it.
Early research quantifying the economic impact of ICE raids in Oxnard estimates direct crop losses of $3 billion to $7 billion with significant spillover into other sectors of the economy. As families lose income to raids — whether through the direct loss of a working family member or in the form of lost business production or sales — they spend less in the local economy. The ripple effect means that the total economic impact of ICE raids is much greater than unpicked crops, with harm most concentrated among the most vulnerable: farmworkers.
Recent changes to a foreign worker program threaten to deepen the wound. The federal program, known as H-2A, allows growers and farm labor contractors to recruit temporary foreign workers to meet seasonal labor demand. It has become the fastest-growing work visa system in U.S. agriculture. It carries with it a well–documented history of wage theft, abuse and trafficking enabled, in part, by H-2A workers’ relative isolation and inability to seek other employment while in the United States.
Until October 2025, the wages paid to H-2A workers were, although low, not so low as to distort the labor market and drag down the wages paid to domestic farmworkers. In October, the Trump administration delivered a huge pay cut to H-2A workers and, in doing so, undercut wages for farmworkers across America regardless of visa status. Trump’s changes include both a direct wage cut as well as new provisions allowing employers to charge housing fees of up to $3 per hour worked.
Estimates of the pay that farmworkers will lose because of these changes range from $4.4 billion to $5.4 billion, or 10% to 12% of farmworkers’ annual wages. Given these figures, the losses suffered by farmworkers in Santa Barbara County alone — where I conduct research — could range from $126 million to $152 million annually, with subsequent decreases in spending and tax revenue reverberating through the region.
With H-2A labor now cheaper relative to domestic farmworkers, visa holders are likely to fill at least one-fifth of all agricultural jobs in Santa Barbara County. This exceeds the program’s 2023 peak in the county, when 18.1% of all agriculture jobs were filled by H-2A, before wage increases caused many growers to drop out of the program in 2024 and 2025. Including housing deductions, employers can now pay H-2A workers $13.90 an hour, significantly below California’s minimum wage of $16.90 an hour. Growers have a strong incentive to substitute resident workers for lower-cost H-2A labor, resulting in local farmworkers losing jobs and income. In addition, because of decreased income and employment, more farmworker families will be forced to rely on benefit programs such as CalFresh, increasing government expenditures.
The tax and budget consequences of expanded H-2A use should be a serious concern for local and state governments. Not only have Trump’s changes significantly reduced farmworkers’ taxable income, but H-2A workers themselves generate less local tax revenue and economic activity than resident workers would.
H-2A employers and employees are exempt from key payroll taxes, including Social Security, Medicare and unemployment insurance. At the same time, the program’s temporary structure — averaging about six months — means workers remit a larger share of their earnings abroad to support families they cannot bring with them, further limiting local spending and the sales tax base.
Elected officials are not powerless in the face of these changes. A range of policy levers could help stabilize a labor market under mounting strain, particularly those that reinforce a meaningful wage floor and limit further downward pressure on earnings. This could include raising the agricultural minimum wage, increasing the California Employment Development Department’s program oversight capacity, and bolstering legal protections for undocumented farmworkers organizing for better working conditions.
The United Farm Workers are currently challenging the Trump administration’s pay rate and housing deduction in court, arguing they constitute one of the largest wealth transfers from workers to employers in the history of American agriculture. Meanwhile, Assemblymember Maggy Krell (D–Sacramento) has introduced legislation to raise the minimum hourly wage for certain agricultural workers to $19.75 — effectively restoring the previous H-2A rate. But that fix, while essential, would not take effect until 2027 and still needs to be passed. In the interim, the state and local governments must act decisively to enforce the existing wage floor, ensuring employers cannot use expanded housing deductions to push workers’ pay below the legal minimum.
These are not radical steps; they are basic protections. The alternative is to accept a race to the bottom — on wages, on working conditions and on the economic stability of the region itself.
Matt Kinsella-Walsh is a graduate researcher with the UC Santa Barbara Community Labor Center and the Organizing Knowledges Project. He researches agricultural economics and labor in the North American strawberry industry.
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Ideas expressed in the piece
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The article argues that federal immigration enforcement has inflicted severe economic damage across California communities[1, 3, 7]
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ICE raids created critical farmworker shortages in labor-intensive crops such as strawberries, with early research estimating direct crop losses of $3 billion to $7 billion in the Oxnard region[1, 14]
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Immigration enforcement has generated widespread economic ripple effects, as families losing income have curtailed consumer spending, thereby harming local businesses and reducing municipal tax revenues[1, 3, 7]
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Trump administration modifications to the H-2A visa program, including wage reductions and housing deduction provisions, will compound economic harms, with farmworkers losing an estimated $4.4 billion to $5.4 billion annually, or 10-12% of their yearly wages[1, 4]
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These wage cuts will suppress domestic farmworker wages across all visa statuses[4, 8], decrease local tax revenue, and contract economic activity in agricultural communities
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State and local governments should strengthen wage protections by raising agricultural minimum wages, increasing regulatory enforcement capacity, and bolstering legal protections for farmworkers to avert further economic deterioration
Different views on the topic
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Agricultural industry representatives argue that labor costs have risen substantially over decades, placing significant financial strain on farm operations[2, 6]
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Growers contend that without policy changes facilitating lower labor costs, some farms may face serious economic viability challenges[2, 6]
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Industry representatives emphasize that farms operate on narrow profit margins[1], suggesting cost reductions are necessary for agricultural sector sustainability
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Agricultural representatives highlight persistent labor shortages in the sector, pointing to historical difficulties attracting sufficient domestic workers to meet production demands, particularly in labor-intensive crops[2, 6, 8]
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The industry maintains that access to temporary foreign workers through programs like H-2A remains essential to address longstanding workforce gaps and maintain agricultural production[2, 6, 8]
Business
Devin Nunes Departs Trump Media After 4 Years as C.E.O.
President Trump’s social media company, which has consistently lost money and struggled with a flagging share price, announced Tuesday that it was replacing Devin Nunes as its chief executive officer.
The announcement offered no reason for the sudden departure of Mr. Nunes, a former Republican congressman from California. Mr. Trump had tapped him to run the company, Trump Media & Technology, in late 2021.
The announcement was made in a news release by the president’s eldest son, Donald Trump Jr., who is a company board member and oversees a trust that controls his father’s 115-million-share stake in Trump Media. President Trump is not an officer or director of the company.
Mr. Nunes said in a statement on Truth Social, which is Trump Media’s flagship product, that it was an “appropriate time” for a new leader with experience in media and mergers to “steer Trump Media through its current transition phase.”
Trump Media has incurred hundreds of millions in losses, and its shares have performed poorly since the company went public by completing a merger with a cash-rich special purpose acquisition company, or SPAC, in March 2024. The stock, which ended its first day of trading around $58 a share, closed Tuesday at $9.82.
Shares of Trump Media trade under the symbol DJT, which are President Trump’s initials. Truth Social has emerged as the main social media platform for Mr. Trump to communicate his policy decisions and opinions to the world.
Last year, Trump Media took in $3.7 million in revenue and recorded a $712 million net loss.
In December, Trump Media announced a plan to merge with TAE Technologies, a fusion power company. The all-stock deal, which was valued at $6 billion at the time, would create one of the first publicly traded nuclear fusion companies.
Trump Media said in February that it was considering spinning off its Truth Social platform in a merger with another cash-rich SPAC, Texas Ventures Acquisition III Corp.
Mr. Nunes is being replaced on an interim basis by Kevin McGurn, who has been an adviser to Trump Media since the end of 2024. Mr. McGurn, a former executive at Hulu, the streaming service, was listed in a recent regulatory filing as the chief executive of Texas Ventures.
The Trump Media release announcing the management change provided no update on the merger with TAE Technologies or the proposed SPAC deal for Truth Social.
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