FCC Proposes New Rules for Removing Bad Actors from FCC Programs

The Federal Communications Commission began a rulemaking which would adopt new procedures to protect federal funds from misuse. The proposed rules would provide the FCC with broader and more flexible authority to promptly remove bad actors from participation in the Universal Service Fund (USF), the Telecommunications Relay Services (TRS) Fund, and the National Deaf-Blind Equipment Distribution Program. The proposal would align FCC rules with the Office of Management and Budget’s Guidelines to Agencies on Government Debarment and Suspension.

The Notice of Proposed Rulemaking seeks to provide the FCC with greater flexibility in preventing fraud, including the ability to consider a broader range of misconduct and to immediately suspend entities when necessary to protect the public interest. The proposed rules would require program participants to verify that they themselves are not excluded from participating in federal programs and that they will not enter into new transactions with excluded third parties. This would keep bad actors out of FCC programs and help prevent bad actors from using other companies to shield them from accountability and let them access federal support. The proposed rules would also allow the FCC to participate in a government-wide mechanism through which suspension or debarment by the FCC would apply to other federal agencies and vice versa.