> This is flat out illegal. States can't regulate interstate commerce.
You may be right, but they have a *lot* more leeway with their buying power.
So Washington's approach (regulating commerce) may not stand up to scrutiny, however the approach of other states (we'll not allow local government contracts to be awarded to anyone not complying with these requirements) is almost certainly very legal. There's no regulation, simply an exercise of buying discretion.
Personally, I think the ISP's got greedy and have bitten off far, far more than they can chew in this case. They may never have been particularly consumer friendly, but taking such a user-hostile position was such a big step that it couldn't come without risk