This story has got nothing to do with spying or censorship. They are simply saying that the US government will no longer have a formal relationship with ICANN, and so will not be involved with the assignment of domain names:
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The change would end the long-running contract between the Commerce Department and the Internet Corporation for Assigned Names and Numbers (ICANN), a California-based nonprofit group. That contract is set to expire next year but could be extended if the transition plan is not complete.
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Mike