Broken USF May Require a Congressional Solution

It is not controversial to say that the Federal Communications Commission’s (FCC) Universal Service Fund (USF) program is unsustainable. Something must change. Universal Service Fund programs cover the cost of maintaining telephone service in high-cost areas, wiring rural schools, libraries, and healthcare facilities for the internet, and providing devices and services at discounted rates to low-income households. In addition, the USF has funded the Connect America Fund (CAF) and Rural Digital Opportunity Fund (RDOF) to support rural broadband construction over the past 10 years. A bipartisan and bicameral Universal Service Fund (USF) Working Group in Congress formed in 2023 to discuss solutions. According to reports, the group has discussed the possibility of “big tech” internet edge providers contributing to the fund. However, the working group has failed to reach any agreements, and the current FCC leadership has opposed the idea.