Universal Service Fund

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.

Fiber provider FiberLight has been selected to build a 10 Gbps fiber network for the Region 16 Education Services Center (ESC) in the Panhandle area of Texas. The project is part of the Federal Communications Commission’s E-rate program, which gives discounts to eligible schools and libraries to make internet access and telecommunications services more affordable to eligible schools and libraries. For this E-rate project, FiberLight will provide technical assets and expertise to the region, which will generate $10 million as part of its 22% of the E-Rate program.

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 Federal Communications Commission voted to boost efforts by schools and libraries to loan out portable Wi-Fi hotspots, programs that mostly began before the COVID-19 pandemic but accelerated at its height. By a 3-2 vote, commissioners OK’d the use of E-Rate funds to support the initiatives.

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.

Library Wi-Fi hotspot lending programs (via the Federal Communications Commission’s E-rate program) are a complement to broadband providers and permanent connections at home—not a replacement for those connections, said Larra Clark, Deputy Director of the American Library Association’s (ALA) Public Policy and Advocacy Office and Deputy Director of the Public Library Association.

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.

As Tribes work in record numbers to close the significant digital divide across Indian Country, they need good policy that facilitates self-determined and sustainable solutions. To the contrary, the Rural Digital Opportunity Fund (RDOF), administered by the Federal Communications Commission (FCC), became, for many, yet another lesson in the dangers of investing significant sums of federal money into new Internet networks on Tribal lands without regard to local knowledge or priorities, leaving Tribal governments to spend their own time and resources to fix broken processes. This report exami