Universal Service Fund

Senator Richard Blumenthal (D-CT) led a group of 25 senators in calling on the Federal Communications Commission to boost its Lifeline program to keep students connected as millions return to school both virtually and in person. Since 1985, the FCC’s Lifeline program has made basic internet and telephone service more affordable for low-income Americans and has had bipartisan support.

Schools are being forced to tackle the digital divide problem in their districts, becoming experts in complex broadband options seemingly overnight. That's on top of grappling with how to make sure their low-income students are fed and healthy, and navigating archaic regulations controlling how they receive funding.

In the midst of the COVID-19 crisis, the General Assembly is considering Gov. Northam’s request to increase funding to bring better broadband to all Virginians. Such support is important, as students stay home and learn, adults stay home and work, and seniors stay home even as they visit their doctor. Funding for broadband would be an important step — and a wake-up call to the federal government. Virginia’s broadband challenges are multifaceted. In rural areas, nearly a third of households have no access to broadband.

Senator Brian Schatz (D-HI) led a group of 15 senators in urging Federal Communications Commission Chairman Ajit Pai to increase funding for and improve the operations of the Rural Health Care (RHC) program, which helps expand access to telehealth services in hard-to-reach and economically depressed communities. “Cash-strapped health care providers are looking to the RHC Program for help to defray these costs, but you have so far not taken steps that would allow health care providers to receive additional support through the program,” they wrote.

The Federal Communications Commission has promoted several emergency measures to boost broadband connectivity during the coronavirus pandemic, which has required millions of people to rely on inadequate at-home internet connections for work and school. But without an immediate expansion of the agency’s E-Rate program — a K-12 school-based broadband subsidy created in 1996 — students around the country will continually be locked out of their virtual classrooms, said FCC Commissioner Jessica Rosenworcel.

Rolling Wi-Fi-enabled school buses into neighborhoods and distributing personal hotspots to families were part of Washington's Central Kitsap School District's rapid response to getting families online once schools closed in the spring. But such programs have limitations and don’t always provide students the high-speed connections they need for Zoom classes and completing assignments — especially if there are multiple students in the home. While the problem permeates much of rural America, the lack of broadband can even be an issue for students living in tech hubs.

A growing number of government programs support broadband deployment. Some programs allow service providers to combine, or “stack,” subsidies in a project’s funding; others have prohibitions against stacking subsidies built into the program rules. Recently this has come up in the debate on the Federal Communications Commission’s new Rural Digital Opportunity Fund (RDOF). This is the question: Should stacking be allowed, or should it be discouraged? Just how does a provider stack subsidies?

Much of the focus in policy circles has been on how to expand broadband access to those Americans without it. This is a worthy goal, but we should not lose sight of the magnitude of the other part of the digital divide: the adoption gap. FCC data shows about 35% or approximately 114 million Americans do not subscribe to broadband service at their homes. Cost is often cited as the leading factor for why Americans do not subscribe to broadband even when it is offered. Clearly, we need a strategy to address this gap, too.

Federal Communications Commission Chairman Ajit Pai may have thought he was doing wireless carriers a favor when he slashed by nearly two-thirds a potentially costly requirement that they increase data for low-income subscribers starting in December. Instead, budget carriers are fighting his plan, leaving an uncertain future for Lifeline, the Federal Communications Commission’s program to help low-income Americans pay their phone and broadband bills. Pai’s draft order would force carriers like TracFone Wireless to provide 1.5 GB more data than currently required under Lifeline.

COVID-19 has exacerbated the digital “haves” and “have nots” through remote work, learning, and telehealth, yet our government’s main agency to support greater access and adoption is inadequately funded and functioned to meet this moment. AT&T recently published a blogpost lamenting the rise in contributions to the Universal Service Fund (USF) and arguing for funding reform.