Universal Service Fund

The Federal Communications Commission is poised to raise taxes through its Universal Service Fund—a regressive, hidden tax on consumers' phone bills that funds a series of unaccountable, bloated internet subsidy programs. Rather than giving the FCC carte blanche to expand its balance sheet, Congress must reform the USF's structural problems, reevaluate its component programs, and get the FCC's spending under control. Here is my plan to do that. 

The Federal Communications Commission's Wireline Competition Bureau (Bureau) seeks comment on a letter from 69 Internet Service Providers, Trade Associations, State and Local Officials, School Districts, Unions, and Civil Society Organizations [including the Benton Institute for Broadband & Society].

The Federal Communications Commission's Wireline Competition Bureau (WCB) announced that BARConnects and North Alabama Electric Cooperative have notified the FCC  that they will not fulfill their commitment to offer voice and broadband service to certain census block groups (CBGs) within their Rural Digital Opportunity Fund (RDOF) and/or Connect America Fund (CAF) Phase II auction supported service areas.  These providers will be subject to penalties for the CBGs where they are defaulting.

A coalition of nearly 70 broadband experts, internet service providers (ISPs), community leaders, and nonprofits wrote to the Federal Communications Commission with a request to grant a limited amnesty designed to prevent the exclusion of America’s least connected rural communities from upcoming federal broadband subsidies. Under the rules of the Broadband Equity Access and Deployment (BEAD) program, communities that are already covered by grants awarded under programs like the Rural Digital Opportunities Fund (RDOF) and Connect America Fund II (CAF II) are not eligible to receive BEAD fund

On January 10, a group of lawmakers wrote to Federal Communications Commission Chairwoman Jessica Rosenworcel to express concern about the FCC's decision to revoke SpaceX’s Starlink 2020 Rural Digital Opportunity Fund (RDOF) award. In her February 6 response, Chairwoman Rosenworcel explained that RDOF featured a two-part application process, and that in the second phase of the process, winning bidders from the first phase were required to share technical and financial information with the FCC.

LTD Broadband has filed a petition for review of the Federal Communications Commission’s decision to deny it funding as part of the Rural Digital Opportunity Fund. LTD, which largely offers fixed wireless broadband, filed a request for judicial review with the D.C. Circuit Court of Appeals on February 2, contesting the agency decision on December 4, 2023. The action follows a series of events stemming from the FCC's proposal for a $21.7-million fine against LTD for defaulting on its bids in the RDOF broadband subsidy program.

The Federal Communications Commission last updated its speed benchmarks for advanced telecommunications capability in January 2015; since then our online lives have changed dramatically, so the Commission’s coming action is welcome and overdue. The new benchmark aligns the FCC standard with the bar set by Congress in the Infrastructure Investment and Jobs Act.

A national coalition—including broadband providers and nonprofit organizations—noted that some recipients nationwide of previous broadband grant programs have failed to use their allocations to build out broadband networks. Texas Rural Funders, a nonprofit dedicated to rural philanthropy, took the lead in collecting signatures from Texans.

Sen Shelley Moore Capito (R-WV) indicated to West Virginia TV station WTRF that Capitol Hill lawmakers were looking at the Universal Service Fund as a source of money for the Affordable Connectivity Program. The USF has about $8.

In these comments to the Federal Communications Commission, the American Library Association affirms support for including Wi-Fi hotspots and services in the E-rate program, ALA urges the FCC to: