CBO Scores the Rural Health Care Connectivity Act

The Rural Health Care Connectivity Act of 2015 (S 1916) would make certain skilled nursing facilities eligible for grants under the Universal Service Fund’s (USF’s) Rural Health Care (RHC) program. The Universal Service program is administered by the Federal Communications Commission (FCC) and is intended to promote the availability of telecommunications services at affordable rates. The cash flows of the USF appear in the budget as direct spending (for amounts distributed from the fund) and as revenues (for fund collections).

CBO estimates that enacting S 1916 would increase direct spending by $197 million over the 2017-2026 period and result in increased revenue collections of $215 million over the same period, resulting in an estimated net reduction in the deficit of $18 million. CBO estimates that implementing the bill would have no significant discretionary costs. Pay-as-you-go procedures apply because enacting the legislation would affect direct spending and revenues. CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits by more than $5 billion in one or more of the four consecutive 10-year periods beginning in 2027.