Blair Levin on why the USF is a ticking time bomb

The year 2023 could prove to be a volatile year for the Federal Communications Commission as it wrestles with a number of lawsuits concerning its Universal Service Fund (USF) program. Should federal circuit courts rule the USF is unconstitutional, it would harm the households relying on USF subsidies and potentially the future of the Affordable Connectivity Program (ACP), according to New Street Research (NSR). In short, the USF framework is at risk of imploding, NSR’s Blair Levin said. If one or more of the courts declares the USF illegal and subsequently suspends the program, it would bring about “immediate damage” to the institutions and low-income families depending on those funds. The FCC will no longer be able to raise money to address USF purposes, said Levin. The USF currently supports four key programs serving different vulnerable market segments: the Connect America Fund (rural areas), Lifeline (low income consumers), E-Rate (schools and libraries), and Rural Health Care.