Rural Health Care

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 The High Cost Fund in particular, which accounts for about half of total spending, is outdated and wasteful.

The Federal Communications Commission's Wireline Competition Bureau seeks nominations for the following Board member positions on the Board of Directors of the Universal Service Administrative Company (USAC) listed below for a three-year term. In addition to the six positions that are expiring as a matter of course at the end of 2024, the FCC also seeks nominations for two additional vacancies resulting from a resignation and carryover vacancy of USAC Board members. All nominations must be filed with the Office of the Secretary by October 28, 2024.

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.

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.

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.