Universal Service Fund

Over the past two years, school districts have sent kids home with laptops and tablets in unprecedented numbers. Thousands of these devices and the internet connections that power them have been purchased through two federal subsidy programs overseen by the Federal Communications Commission (FCC) known as E-Rate and the Emergency Connectivity Fund (ECF).  Giving students these devices has led to a dramatic increase in screen time and made it more difficult for parents to protect their children from exposure to objectively harmful online content.

The Federal Communications Commission's Wireline Competition Bureau seeks nominations for six Board member positions on the Board of Directors of the Universal Service Administrative Company (USAC) for a three-year term. The FCC is persuaded that having Board members with substantive areas of expertise relevant to running a large and complex organization with such skills as accounting, finance, auditing, procurement, data management and information technology will improve the management, administration and oversight of USAC.

The Federal Communications Commission's Wireline Competition Bureau seeks comment on the proposed eligible services list (ESL) for the schools and libraries universal service support mechanism (more commonly known as the E-Rate program) for funding year 2023. The FCC has included its proposed eligible services list here and invites stakeholders to comment.

When it comes to broadband, the Infrastructure Investment and Jobs Act is about more than money. For example, Congress also directed the Federal Communications Commission to consider the impact of the law's $65 billion broadband investment on the FCC's existing broadband support programs under the umbrella of the Universal Service Fund (known to wonks as the USF).

More than a year and a half after the close of the Rural Digital Opportunity Fund (RDOF) auction, fixed wireless providers Starry, Nextlink and Resound Networks are still waiting for their winning bids to be authorized. The companies have expressed confidence their subsidy money will come through. Starry, Nextlink and Resound were among the top 10 winners in the RDOF auction, collectively winning just over $1 billion. That means they account for about half of the $2 billion in remaining bids the FCC has left to process.

The Federal Communications Commission completed its Report on the Future of the Universal Service Fund as required by the Infrastructure Investment and Jobs Act, which instructs the FCC to submit to Congress “a report on options of the Commission for improving its effectiveness in achieving the universal service goals for broadband in light of this Act...and other legislation that addresses those goals.” The Infrastructure Act includes the largest ever federal investment in broadband, totaling approximately $65 billion.

Each year, Congress recesses for the month of August. While the work—or, at least, the news—of Washington generally slows down in this period, all indications are that policymakers—and, most importantly, policy implementors—will be very busy throughout the summer of 2022 working on universal broadband and provisions of the Infrastructure Investment and Jobs Act. Here's what we're seeing and expecting from the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA). 

The Federal Communications Commission rejected the long-form applications of LTD Broadband and Starlink to receive support through the Rural Digital Opportunity Fund (RDOF) program. The FCC determined that these applications failed to demonstrate that the providers could deliver the promised service.

The Federal Communications Commission will soon issue a report to Congress on the options for the troubled Universal Service Fund (USF). When it issued a Notice of Inquiry in December 2021, the FCC asked for input because the cost to consumers who support the USF has been increasing.