Lifeline/Low-Income Consumers

The Government Accountability Office (GAO) released a report requested Sen Ted Cruz (R-TX) that found the Universal Service Fund (USF) operator is burning through cash with only minimal government oversight of its budget. The report confirms the need for greater Congressional oversight of the USF as Sen. Cruz laid out in his Blueprint for Universal Service Fund Reform, published last year.

In May 2023, Senator Ted Cruz (R-TX), the minority leader of the Senate Commerce Committee, sent a letter to the U.S. Government Accountability Office (GAO) requesting an examination of how the Federal Communications Commission administers the Universal Service Fund (USF). The USF consists of money collected from telecommunications companies that is dedicated to fulfilling the goals of universal service.

The cable industry's policy people are working through a smorgasbord of issues, including surprise litigation tied to the Universal Service Fund, a temporary stay on the return of network neutrality rules, tricky nuances tied to the Broadband Equity Access and Deployment (BEAD) program, and even the recent temporary injunction slapped on Venu, a new sports streaming service. Yet another challenge: a US Supreme Court decision in June that 

A recent federal court ruling is unlikely to mean the permanent end of the E-rate program that funds school telecommunication services, but the program's future is still uncertain. On a recent webinar, attorneys Sean Lev and Andy Schwartzman emphasized the recent ruling will have no near-term effects on E-rate.

The Federal Communications Commission's Wireline Competition Bureau announced the counties in which conditional forbearance from the obligation to offer Lifeline-supported voice service applies. This forbearance applies only to the Lifeline voice obligation of eligible telecommunications carriers (ETCs) that are designated for purposes of receiving both high-cost and Lifeline support (high-cost/Lifeline ETCs), and not to Lifeline-only ETCs.

According to the American Community Survey, 94.1 percent of Maryland residents have a home internet subscription of some kind which—while outperforming the national rate by 3.8 percentage points—still indicates that a sizable number of Maryland households are disconnected from the internet at home.

Although broadband is widely available in Oregon, it is not universally available. Oregon and the Oregon Broadband Office (OBO) have been laying the groundwork for the delivery of affordable, reliable broadband internet to every household in Oregon.

On August 7, 2024, the National Telecommunications and Information Administration (NTIA) released the third funding report showing fiscal year (FY) 2022 data reported by 13 agencies across 70 programs making investments in broadband.

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.