FCC stands by decision to raise broadband prices on American Indians

The Federal Communications Commission is refusing to reverse a decision that will take a broadband subsidy away from many American Indians. Under FCC Chairman Ajit Pai's leadership, the FCC voted 3-2 in November 2017 to make it much harder for Tribal residents to obtain a $25-per-month Lifeline subsidy that reduces the cost of Internet or phone service. The changes could take effect as early as October 2018, depending on when they are approved by the US Office of Management and Budget (OMB). 

Small wireless carriers and Tribal organizations sued the FCC in the United States Court of Appeals for the DC Circuit. They also filed a petition asking the FCC to stay its decision pending the outcome of the appeal. But the FCC denied the stay petition in a decision released July 5. "Petitioners have not shown that they are likely to succeed on the merits of their claims," the FCC said. "The 2017 Lifeline Order contains a comprehensive explanation of the basis for the Commission's decision to limit enhanced Tribal support to rural Tribal areas, and to target such support to facilities-based providers." The petitioners argued that the FCC "failed to comply with its Tribal consultation requirements as required by law." The FCC's decision to impose the changes without opening another proceeding violated federal notice-and-comment requirements and law requiring federal agencies to deal fairly with American Indian tribes, the petitioners argued.