How to Fund Universal Broadband Service Without the Universal Service Fund

The Fifth Circuit Court of Appeals threw federal broadband policy into chaos recently by declaring the Universal Service Fund unconstitutional. The decision threatens to shut down the Federal Communications Commission’s longstanding system of collecting fees from telecommunications customers to subsidize rural broadband deployment and Internet access for low-income households, schools, and other programs. For years, policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities. Now Congress has a clear mandate to reallocate funding to vital broadband programs like the Affordable Connectivity Program (ACP), while eliminating outdated and redundant initiatives. A reformed USF should turn the focus from infrastructure deployment to digital inclusion and affordability, and Congress should directly appropriate the funding for broadband programs. The Fifth Circuit has put up a roadblock for current universal service efforts, but it was time to change course anyway. By enacting targeted reforms, federal broadband policy will be more sustainable and effective than it was before.

[Joe Kane is director of broadband and spectrum policy at the Information Technology and Innovation Foundation.]