Rural Digital Opportunity Fund

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.

The House Oversight Committee recently decided to investigate the Federal Communications Commission’s (FCC) decision in 2022 to deny Rural Digital Opportunity Fund (RDOF) funding to Starlink. The timing of this announcement clearly has political overtones since it was announced as Elon Musk took the stage at a campaign event with one of the presidential candidates. RDOF was awarded using a reverse auction, where the provider willing to take the lowest amount of subsidy winning the funding.

Elon Musk’s influence over the federal government is extraordinary, and extraordinarily lucrative. His companies were promised $3 billion across nearly 100 different contracts with 17 federal agencies in 2023. Musk’s rocket company, SpaceX, effectively dictates NASA’s rocket launch schedule. The Defense Department relies on him to get most of its satellites to orbit. His entanglements with federal regulators are also numerous and adversarial.

Citizens Against Government Waste (CAGW) named Federal Communications Commission Chairwoman Jessica Rosenworcel its October 2024 Porker of the Month for her decision to block funding for Starlink to deploy satellite internet service in hard-to-reach areas of the country. The FCC approved and then revoked SpaceX Starlink’s $885.5 million competitive award under the Rural Development Opportunity Fund (RDOF).

In 2021 Vice President Kamala Harris (D-CA) agreed to lead the administration’s $42 billion plan for expanding high-speed internet to millions of Americans. That year, she tweeted that “we can bring broadband to rural America today.” Today, nearly three years after Congress passed the infrastructure bill that created the program, not one home or business has been connected through it.

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:

Let’s discuss the current Broadband Policy State of Play and how the election may affect it. There are four fundamental goals of broadband policy:

The National Telecommunications and Information Administration's mission is to build a better-connected world. That work includes connecting everyone in America to reliable, affordable high-speed Internet service. The Internet for All initiative is historic. As such, we would be remiss if we failed to learn lessons from the recent history of other federal broadband programs. Top of mind are the failings of the Rural Digital Opportunity Fund, or RDOF.

The House Committee on Oversight and Accountability is investigating the Federal Communications Commission’s decision to reaffirm its revocation of an award authorizing Space Exploration Technologies Corporation’s Starlink to receive broadband deployment subsidies through the Rural Digital Opportunity Fund (RDOF).  The Committee seeks information from the FCC to ensure that the Commission followed established processes and is not improperly using the regulatory process for political purposes.

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.