Universal Service Fund

Federal Communications Commission Chairman Ajit Pai shared with his fellow commissioners an order to promote more high-speed broadband deployment in rural areas. If adopted, it would provide over $500 million in additional funding for cooperatives and small rural carriers. The order would also put in place strong new rules to prevent abuse of the high-cost program.

For many low-income Americans, internet connectivity is a struggle. About half (53%) of those in households with annual incomes under $30,000 have a home broadband internet subscription plan, compared with 93% of households whose annual incomes exceed $75,000. This makes closing connectivity gaps a priority for policymakers, the non-profit sector, and many internet service providers (ISPs). What is perhaps less appreciated is the variety of models that have arisen to try to reach those without broadband at home. The population of non-home broadband users is not monolithic.

Under changes the Federal Communications Commission recently proposed, fewer people may receive subsidized broadband service under the Lifeline program. Those left out will struggle to do online tasks such as filling out a job application, or paying bills online. About 12.5 million low-income people across the country, and thousands in Ohio, could be affected.There are even health implications, since so much of today's medicine relies on patients having the ability to make appointments, refill prescriptions and view test results online.

On Oct 30, 2017, Rep John Ratcliffe (R-TX) wrote to Federal Communications Commission Chairman Ajit Pai to take action to address the budget shortfall in certain parts of the High-Cost Universal Service Fund (USF).

January 20 marks the one-year anniversary of Donald Trump’s inauguration. With little indication of what his communications policy plans were before the election, now seems a good time to reflect on what his Administration’s priorities have been over the past 12 months. Here’s a look at what Trump's Federal Communications Commission decided to tackle first in 2017.

[Commentary] If some areas end up with no winning bidder, does that mean the Federal Communications Commission's Connect America Fund Phase II auction is a failure? The answer is “No!” The FCC will need to look at the results of the Phase II auction to evaluate how universal service auctions are different in practice from spectrum auctions, and adjust accordingly, as necessary.

Today I want to discuss Federal Communications Commission Chairman Pai’s belief that we are on the cusp of a new era of partnership between the FCC and rural electric cooperatives. Specifically: our hope that electric coops will become a bigger part of closing the digital divide and delivering online opportunity to rural Americans who have been bypassed by the broadband revolution. And how the FCC can work with you all to bring about this change. 

While USAC is encouraged that its information technology systems delivered continual reliability and availability improvements for our universal service program participants and contributors in 2017, we agree with your assessment that USAC must redouble its efforts to ensure that we are adequately planning, coordinating, testing and reviewing our systems to ensure that they are functional, reliable, and secure.

With network neutrality in the rearview mirror, is E-Rate next on the Federal Communications Commission’s chopping block?  Experts admit it’s possible, if unlikely, but suggest a more probable series of modest changes in the short term. “I understand there are concerns about [FCC Chairman Ajit] Pai,” says John Harrington, CEO of the E-Rate consultancy Funds For Learning.

The Federal Communications Commission announced it has settled its investigations of five providers that received improper payments from the Lifeline program. Noting that the companies have already repaid the program for improper payments, the FCC found that the public interest would be served by adopting the Consent Decrees, which resolve the Notice of Apparent Liability for Forfeitures issued to the companies. As part of each settlement, the companies have agreed to make additional payments to the U.S.