Universal Service Fund

Sens Roger Wicker (R-MS), Shelley Moore Capito (R-WV), and Todd Young (R-IN) introduced the Funding Affordable Internet with Reliable (FAIR) Contributions Act. The legislation would direct the Federal Communications Commission to conduct a study into the feasibility of collecting Universal Service Fund (USF) contributions from internet edge providers such as YouTube, Netflix, and Google. The FAIR Contributions Act would:

Senate Commerce Committee Ranking Member Roger Wicker (R-MS) and Broadband Subcommittee Ranking Member John Thune (R-SD) sent a letter to Acting Chairwoman Jessica Rosenworcel to request a status update on the Federal Communications Commission's long-form application review process for the Rural Digital Opportunity Fund (RDOF) Phase I auction. The auction awarded $9.2 billion over ten years to over 300 bidders to deploy high-speed broadband to over 5.2 million unserved homes and businesses in 49 states.

In 2016, the Federal Communications Commission adopted a comprehensive reform and modernization of its Lifeline program. For the first time, the FCC included broadband as a supported service in the program, allowing support for stand-alone mobile (think cell phone) or fixed broadband Internet access service (think home broadband service delivered over a wire), as well as bundles including fixed or mobile voice and broadband. But the 2016 decision also set out to zero-out support for voice-only services.

In this report, the Federal Communications Commission's Wireline Competition Bureau provides a summary of the state of the Lifeline marketplace as directed by the 2016 Lifeline Order.

The key findings of this report reflect the need to establish a clearer connection between Federal Communications Commission policy and how Universal Service Administrative Company operationalizes this policy through an FCC-directed Lifeline program strategic plan. Currently no such document exists. This prescriptive document will significantly contribute to the resolution of many of the findings. Broadly, findings, observations, and recommendations span two main categories:

The Federal Communications Commission is still reviewing Verizon’s proposed purchase of TracFone Wireless from América Móvil. Verizon CEO of the Consumer Group, Ronan Dunne, and TracFone CEO, Eduardo Diaz Corona, met with Acting FCC Chairwoman Jessica Rosenworcel to try and convince her that the transaction is in the public interest. Their main argument is that a combined Verizon/TracFone will introduce a third facilities-based provider in the prepaid segment to compete against T-Mobile’s Metro and AT&T’s Cricket.

Reps Elaine Luria (D-VA) and John Katko (R-NY) introduced the Ensuring Phone and Internet Access for SNAP Recipients Act of 2021 (H.R.4275). This bipartisan bill would lower the cost of phone and internet access for households that benefit from the Supplemental Nutrition Assistance Program (SNAP). SNAP recipients automatically qualify for the Federal Communications Commission’s Lifeline Program, which offers discounted phone and internet service.

Key Republicans are warming to an idea that was once anathema to the party—leveling taxes on big American companies to pay for internet subsidy programs. An idea from GOP Federal Communications Commissioner Brendan Carr to force tech companies to pay into a pool of money used to fund broadband programs is gaining steam with some key lawmakers, including GOP Minority Leader Kevin McCarthy. Republican support of taxing Big Tech could help shore up the struggling Universal Service Fund; Commissioner Carr argues that Congress should direct the companies that benefit from using internet networks

In response to the impact of the ongoing COVID-19 pandemic in the United States, the Federal Communications Commission's Wireline Competition Bureau has waived certain Lifeline program rules in seven previous Orders to provide necessary relief for low-income households. Although vaccination efforts have been underway for several months and overall cases have decreased, the effects of the COVID-19 pandemic are still being felt by many Americans.

The Federal Communications Commission, the Department of Agriculture, and the National Telecommunications and Information Administration will share information about and coordinate the distribution of federal broadband deployment funds.