5G Fund for Rural America

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policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities.

How much power may Congress hand off to the Washington bureaucracy? That’s a live question, so grab the popcorn to read a decision by the Fifth Circuit Court of Appeals. In a 9-7 en banc ruling, it invalidated a “universal service” surcharge added to cellphone bills.

Perkins Coie Partner Marc Martin, a lawyer who helps companies understand Federal Communications Commission rules, expects multiple FCC cases to go before the Supreme Court. Martin called the recent Fifth Circuit Court of Appeals decision about the Universal Service Fund (USF)—ruling that the framework through which the FCC created the USF is unconstitutional—“a shock to the industry.” He referred to the Fifth Circuit Court as a “forum-shopping pla

An appeals court ruled the current structure of the Universal Service Fund is unconstitutional. This decision puts at risk the high-speed connectivity of millions of rural and low-income Americans and the future trajectory of U.S. economic growth and global competitiveness. Now it’s Congress’s duty to promptly and decisively make clear the nation’s unwavering commitment to affordable, universal connectivity. The court’s fundamentally flawed decision hands Congress an enormously important opportunity to seize the initiative and ensure our nation’s abiding commitment to universal service.

The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount.

For several years now, a well-funded litigation group has sought an appellate court decision deeming the current method of funding the Federal Communications Commission's Universal Service Fund unconstitutional. The litigants finally hit paydirt in an enbanc appeal to the Fifth Circuit Court of Appeals that ruled in their favor on a 9-7 vote. The litigants ostensibly expressed concerns about constitutional rights, economic freedom, what constitutes a tax, how specific a congressional delegation of authority has to be, and the extent to which the FCC could lawfully delegate administration of

In a ruling that quickly caused shock waves in the U.S. telecommunications industry, the Fifth Circuit Court of Appeals ruled, 9-7, that the Universal Service Fund (USF) is unconstitutional as currently administered. The Court explained its ruling by saying that the USF is a “misbegotten tax” that violates Article I, § 1 of the Constitution, which states that all legislative powers are given to Congress, which is made up of the Senate and the House of Representatives.

On April 24, members of Congress wrote to Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel to "urge the FCC to carefully consider and account for the impact of investments funded by the Infrastructure, Investment and Jobs Act (IIJA) to maximize the reach and efficiency of the 5G Fund." On July 2, Chairwoman Rosenworcel responded, agreeing that it is critical to maximize the efficiency and impact of federal broadband programs.

As all of us have focused on the Broadband Equity, Access and Deployment (BEAD) program to bring fixed broadband to rural areas, the Federal Communications Commission has quietly moved another program forward: the proposed “5G Fund for Rural America”, a program that could be as large as $9 billion. As of March 2024, FCC Chairwoman Jessica Rosenworcel circulated to colleagues a draft order that would restart the 5G Fund.

The rural broadband industry has such a great success story to tell. In the face of transformative technologies, regulatory challenges and increasing competition, you have embraced that change, stayed committed and looked to close the digital divide by delivering the robust and high-quality services that you do every single day. Your commitment to sustainable networks and affordable services is what really has made rural communities fertile ground for innovation. We’ve seen that in so many ways, and this innovation contributes billions of dollars to the U.S. economy every single year.