April 6, 2026
Louisiana Senate
Commerce Committee
900 North 3rd Street
Baton Rouge, Louisiana 70804
Dear Senator,
On Wednesday, April 8, 2026, the Commerce Committee may consider SB 209, a bill to amend the Local Government Fair Competition Act. On behalf of the 2,868 members and supporters of the Council for Citizens Against Government Waste in the state of Louisiana, I urge you to oppose this legislation, which would reduce competition, raise broadband costs, and increase government waste.
The Local Government Fair Competition Act prohibits government-owned networks (GONs) from using eminent domain, subjects them to antitrust liability, and prevents them from subsidizing broadband rates with taxpayer resources or subsidized loans from other government entities. The intent was to prevent cross-subsidization of broadband rates using energy revenues and establish guardrails to prevent mismanagement of government funds by subjecting GONs to audits and other accountability measures with which all internet service providers must comply.
The law therefore forces the state’s GONs to face the same market constraints of profit and loss as private providers. SB 209 would strip away these protections and allow local governments to become both a competitor and regulator of broadband providers, create rules that unfairly benefit a GON, and avoid accountability on the use of taxpayer funds. The looser restrictions would apply to the state’s largest GON, LUS Fiber, which had problematic audits over a six-year period, including $1.5 million in improper payments for phantom connections. Enabling LUS Fiber to play a larger role in broadband deployment would be a mistake and exemplifies why SB 209 should be opposed.
GONs are inherently anti-competitive and their failures around the country have caused significant losses to taxpayers. Cities like Bristol, Virginia and Provo, Utah, have invested millions of dollars to build a GON, only to sell them for pennies on the dollar, leaving taxpayers responsible for unpaid debt. The Local Government Fair Competition Act was enacted to ensure that taxpayer resources are protected when a local government enters the broadband marketplace and SB 209 would undo those restrictions.
With a $1.36 billion allocation from the federal Broadband Equity, Access and Deployment program, Louisiana is poised to connect unserved and underserved communities. Weakening current guardrails on GONs would impede competition, raise costs, delay deployment, and create barriers to entry into the broadband marketplace. I strongly urge you to continue to protect Louisianans by opposing SB 209.
Sincerely,
Tom Schatz
President, CCAGW