Chairman Response to Members of Congress Regarding Cap on Universal Service Fund

On Aug 22, 2019, Sen Jon Tester (D-MT) wrote to Federal Communications Commission Chairman Ajit Pai expressing concern about the FCC's proposal to establish a cap on the overall Universal Service Fund (USF) budget and combine the E-rate and Rural Health Care programs under a single sub-cap. On Sept 25, 2019, a dozen Members of Congress wrote to Chairman Pai to also express concern about a USF cap: "If enacted, an overall cap on the USF programs will undermine the ability of low-income Asian American and Pacific Islander families and households to enroll in Lifeline and attain a higher standard of living. ...we urge the Commission to signal its commitment to universal service by rejecting the proposed cap." 

On Jan 3, 2020, Chairman Pai responded to the two letters by explaining the proposal. He said the FCC initiated the proceeding "mindful of our obligation to safeguard the USF funds ultimately paid by consumers, including Asian-American and Pacific Islander families and households, and to ensure that these important programs are funded appropriately." He continued, "Each of the USF programs is currently capped or is operating under a targeted budget. And the Commission believes that an overall cap could help limit the overall contribution burden (which falls on every consumer with a phone bill) and will provide regulatory and financial certainty to both recipients of and contributors to the Fund."