FCC Initiates Evaluation of Funding for USF

The Federal Communications Commission seeks comment on establishing a cap on the Universal Service Fund and ways it could enable the FCC to evaluate the financial aspects of the four USF programs in a more holistic way, and thereby better achieve the overarching universal service principles Congress directed the FCC to preserve and advance. While each of the constituent USF programs are capped or operating under a targeted budget, the FCC has not examined the programs holistically to determine the most efficient and responsible use of these federal funds. A cap could promote meaningful consideration of spending decisions by the FCC, limit the contribution burden borne by ratepayers, provide regulatory and financial certainty, and promote efficiency, fairness, accountability, and sustainability of the USF programs.

[WC Docket No. 06-122]