E-rate/Schools and Libraries Program

FCC Commissioner Geoffrey Starks said, “I’m pleased that the Fifth Circuit agreed with what I and many others—including bipartisan members of Congress—have said about the Universal Service Fund. It is constitutional, both in concept and implementation. The Universal Service Fund continues to connect rural communities, schools, libraries, healthcare providers, and low-income households all across the country.

Coming from one of the more conservative courts in the country, this decision is a ringing ratification of the system Congress established to ensure that all Americans have affordable access to telecommunications service and advanced services like broadband. This should not come as a surprise, but once the USF was subjected to a legal challenge, the Benton Institute for Broadband & Society joined with public allies to defend this critical mechanism for ensuring universal broadband.

The 5th Circuit U.S. Court of Appeals upheld the decades-old funding mechanisms governing Federal Communications Commission subsidies, a decision that assures the delivery of billions of dollars in broadband aid across a variety of government programs. The FCC, for more than a quarter-century, has operated this pot of subsidies known as the Universal Service Fund, amounting to roughly $9 billion annually.

The Universal Service Fund is funded  by a quarterly surcharge on interstate and international telecommunications revenue. Each quarter, a private nonprofit known as the Universal Service Administrative Company (USAC) estimates how much money it needs to fund the Federal Communications Commission’s (FCC) myriad universal service initiatives. It also estimates the amount of telecommunications revenue expected to be generated by industry, and from there calculates the surcharge percentage necessary to cover program costs.

The total projected collected interstate and international end-user revenue base to be used in determining the contribution factor for the Universal Service Fund support mechanisms for the second quarter of calendar year 2023 (2Q2023) is $8,761,742,607.

The Federal Communications Commission adopted a proposal seeking comment on steps to encourage greater participation by eligible Tribal applicants in the E-Rate program, which provides high-speed internet to schools and libraries.

Here’s what the Federal Communications Commission will consider at our February open meeting.

Federal Communications Commissioner Chairwoman Jessica Rosenworcel said that using the E-rate program to subsidize mobile hotspot devices is a “great idea” and that there may be some activity on that front in the future. The chairwoman was fielding a comment from a mayor of a Texas city, who said that his jurisdiction has a program that lends out connectivity hubs – allowing others to connect to the device – in parts of the town for residents seeking internet. He asked whether that’s something that the FCC could fund.

The year 2023 could prove to be a volatile year for the Federal Communications Commission as it wrestles with a number of lawsuits concerning its Universal Service Fund (USF) program.

Federal Communications Commission Chairwoman Jessica Rosenworcel appointed seven members to the Board of Directors of the Universal Service Administrative Company (USAC). The three-year term for these positions begins on January 1, 2023.