Lifeline/Low-Income Consumers

A bipartisan group of senators is looking into Universal Service Fund (USF) reform and, even better, there are solutions on which both parties can agree.

Issa Asad, 51, of Southwest Ranches (FL), and Q Link Wireless LLC, of Dania Beach (FL), pleaded guilty to conspiring to defraud and commit offenses against the United States in connection with a years-long scheme to steal over $100 million from the Federal Communications Commission's Lifeline program. Asad, Q Link’s CEO, also pleaded guilty to laundering money from a separate scheme to defraud a different federal program meant to aid individuals and businesses hurt by the Covid-19 pandemic.

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:

Federal Communications Commission Chairwoman Jessica Rosenworcel announced the agency took quick action to assist people impacted by Hurricane Helene by providing discounted phone and broadband service through its Lifeline program. The agency voted to temporarily waive certain Lifeline program eligibility rules to ensure that consumers receiving federal disaster assistance can easily apply for and enroll in the Lifeline program.

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.

During Digital Connectivity and Lifeline Awareness Week, the Federal Communications Commission announced the implementation of a key provision of the Safe Connections Act that will help survivors of domestic violence, human trafficking, and related crimes get discounted phone, internet, or bundled services through the FCC’s Lifeline program. Survivors can now make a request with their service provider to separate their mobile phone lines from family plans where the abuser is on the account.

On September 6, 2024, the Federal Communications Commission launched its latest (and 18th overall, if you're scoring at home) inquiry into the state of broadband in the United States.

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.