5G Fund for Rural America

Chris Mitchell speaks with Andy Schwartzman, Senior Counselor at the Benton Institute for Broadband & Society, about pressing legal issues affecting telecommunications policy in the U.S.

The Universal Service Fund (USF) has been stuck in legislative limbo as the government wrestles with how to improve the subsidy program. Experts think USF reform could see momentum in Trump’s second term, but how that will pan out is a trickier question to answer. The USF, which supports broadband access and affordability in rural and low-income communities, is made up of four [sic] smaller programs: Connect America Fund, Lifeline, E-Rate and Rural Health Care. One glaring problem with the current USF framework is the shrinking contribution base.

The future of the $8.5 billion Universal Service Fund (USF), which supports broadband access in schools, libraries, and rural communities, hangs in the balance as three critical court cases move forward. In a rare twist, two cases saw oral arguments on the same day, adding a sense of urgency to the outcomes. These decisions could redefine affordable internet connectivity for students, families, and communities nationwide. We summarize each case and outline the stakes for the E-rate and other USF programs. As we await the courts’ decisions, SHLB is not just observing from the sidelines.

At the Connected Oklahoma – Rural Broadband Summit in Oklahoma City, I shared my thoughts on the future of the Universal Service Fund (USF) and Low Earth Orbit satellites. Here's the homework I asked the audience to do:

There is a political consensus that the United States should continue its nearly century long commitment to assuring that the tools of modern communications are universally accessible and affordable. There is also a consensus that the primary program through which we keep that commitment—the Federal Communications Commission’s Universal Service Fund (USF)—is breaking down.

I've identified some concerns with the order for the new 5G Fund for Rural America that will provide $9 billion to improve rural cellular coverage.

The Federal Communications Commission announced it will move forward with the 5G Plan for Rural America. Since the FCC seems determined to move forward with the current maps and seems to be on a fast track to initiate the 5G plan, there should be a sense of urgency in any County that thinks it needs better cellular coverage.

NTCA–The Rural Broadband Association is releasing the results of a survey it conducted of members on how the potential disruption of Universal Service Fund (USF) support could affect rural consumers, broadband investment in rural America, and the viability of existing rural broadband networks. The survey was conducted in August 2024 following a July decision finding the system for contributions to the federal USF unconstitutional and remanding the matter to the Federal Communications Commission. Significant findings include: 

The Federal Communications Commission recently released a short document that highlights the benefits that come from the Universal Service Fund. The FCC touts the following benefits from the Universal Service Fund:

Two very real Universal Service Fund (USF) problems need to be addressed: funding and spending. The way the program is funded is inefficient, unsustainable, and regressive. Regardless of the judicial outcome, the tax that the court declared unconstitutional is both inefficient, by taxing a small, price-sensitive, declining base, and regressive, with a higher proportional burden falling on those least able to afford it. The program spends too much money on the wrong things. The High Cost Fund in particular, which accounts for about half of total spending, is outdated and wasteful.