E-rate/Schools and Libraries Program

The Universal Service Fund is a $8 billion decades-old mechanism created by Congress in 1996 to support vital communications investments where the marketplace falls short: connecting schools and libraries to high-speed internet; helping rural hospitals adopt telemedicine; ensuring low-income households have basic communications services; and investing in broadband in communities that need it most. The Fifth Circuit Court of Appeals recently held that the current administration of the Universal Service Fund is unconstitutional. Why is the Universal Service Fund so important?

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policymakers have acknowledged the need to overhaul the USF because of its ballooning fees, potential for waste, and outdated priorities.

Library Wi-Fi hotspot lending programs (via the Federal Communications Commission’s E-rate program) are a complement to broadband providers and permanent connections at home—not a replacement for those connections, said Larra Clark, Deputy Director of the American Library Association’s (ALA) Public Policy and Advocacy Office and Deputy Director of the Public Library Association.

This is the third Federal Broadband Funding Report produced by NTIA, showing fiscal year (FY) 2022 data reported by 12 agencies across 70 programs making investments in broadband. This is the first Federal Broadband Funding Report to highlight trends across three fiscal years of data collected. For the first time, this report not only will release a dashboard of major findings but will also include a comprehensive view of broadband investment data reported across the last three data collections—reflecting broadband investments from FY 2020 to 2022.

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.