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Articles for “Federal Universal Service Fund”

The FCC's Universal Service Fund (USF) was created by the Telecommunications Act of 1996 to fund programs designed to provide universal telecommunications access to all U.S. citizens. All telecommunications providers are required to contribute a percentage of their end-user revenues to the Fund, which the FCC allocates for four core programs: 1. Connect America Fund, which subsidizes telecom providers for the increased costs of offering services to customers in rural and remote areas 2. Lifeline, which directly subsidizes low-income households to help pay for the cost of phone and internet service 3. Rural Health Care, which subsidizes health care providers to offer broadband telehealth services that can connect rural patients and providers with specialists located farther away 4. E-Rate, which subsidizes rural and low-income schools and libraries for internet and telecommunications costs The Universal Service Administrative Company (USAC) administers the USF on behalf of the FCC, but requires Congressional approval for its actions. Many states also operate their own universal service funds, which operate independently from the federal program.

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Molaks File 5th Circuit Challenge Against Latest E-Rate Wi-Fi Order
September 3, 2024 by Howard Buskirk|Top News
Maurine and Matthew Molak filed a petition Thursday seeking review of a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2407180024), in the 5th U.S. Circuit Court of Appeals. The Molaks previously sought reconsideration of the July order, which three public interest groups and T-Mobile opposed last week (see 2408280029).
Topics:Affordable Connectivity Program (ACP), CBRS, Federal Communications Commission (FCC), Federal Universal Service Fund, Major Questions Doctrine, Section 230
USF Reform is Popular, But Bipartisan Support Is Lacking on Details
August 27, 2024 by Matt Daneman|Top News
CHARLESTON, S.C. -- Federal lawmakers from both parties back reforming the Universal Service Fund (USF), but whether that happens likely will depend on the November elections, speakers said Monday at NATOA’s annual local government conference. Localities will increasingly face broadband-only providers wanting right of way (ROW) access, and those cable competitors raise questions of whether they too should pay franchise fees, said localities lawyer Brian Grogan of Moss & Barnett.
Topics:Affordable Connectivity Program (ACP), Federal Universal Service Fund
Cruz Hits USAC on 28% 2018-2023 Spending Increase; Gomez Eyes Hill USF Fix
August 26, 2024 by Jimm Phillips and Karl Herchenroeder|Top News
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).
Topics:Affordable Connectivity Program (ACP), Federal Communications Commission (FCC), Federal Universal Service Fund
Harris White House Not Seen Making Big Telecom Policy Turns From Biden Administration
August 16, 2024 by Matt Daneman, Monty Tayloe, and Gabriella Novello|Special Report
Don’t expect major daylight between a Kamala Harris administration and the Joe Biden White House on major communications policy issues, industry and policy experts predicted. Much focus and effort would center on defending the FCC's net neutrality and digital discrimination orders in the current federal circuit court challenges, as well as pursuing net neutrality rules, they said. Less clear would be the nature of the relationship between Harris' White House and Big Tech. The Harris campaign didn't comment. Deregulation and undoing net neutrality are considered high on the to-do list for the administration of Republican presidential nominee Donald Trump if he's elected (see 2407110034).
Topics:Affordable Connectivity Program (ACP), CBRS, Federal Universal Service Fund, Safe Connections Act
Industry Urges FCC Modifying Letter of Credit Rules for USF Recipients
August 7, 2024 by Gabriella Novello|Top News
Telecom and banking groups urged that the FCC adopt proposed modifications to its letter of credit (LOC) rules for Universal Service Fund support recipients. Comments were posted Tuesday in docket 10-90 (see 2407030062). The commission proposed modifying LOC rules for its high-cost programs and Connect America Fund (CAF) Phase II and Rural Digital Opportunity Fund (RDOF) support recipients.
Topics:Federal Universal Service Fund
Beshear, Cooper Have Strongest Telecom Credentials Among Democrats' Top VP Contenders
July 29, 2024 by Jimm Phillips, Adam Bender, Matt Daneman, and Monty Tayloe|Top News
Kentucky Gov. Andy Beshear and North Carolina Gov. Roy Cooper possess the best telecom policy credentials among the main contenders to be the Democrats’ vice presidential nominee, broadband advocates and other policy observers told us. All the contenders hold broadly similar views to Vice President Kamala Harris on broadband and telecom policy matters, but could bring different perspectives to the ticket, experts said in interviews last week.
Topics:Affordable Connectivity Program (ACP), Federal Universal Service Fund
Experts Look to SCOTUS Following 5th Circuit USF Ruling Despite Little Immediate Impact
July 29, 2024 by Gabriella Novello, Adam Bender, Matt Daneman, and Howard Buskirk|Top News
The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
Topics:Federal Communications Commission (FCC), Federal Universal Service Fund, Wireless Spectrum Auctions
5th Circuit Sides With Consumers' Research in USF Contributions Challenge
July 25, 2024 by Gabriella Novello|Top News
The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
Topics:Federal Communications Commission (FCC), Federal Universal Service Fund, Major Questions Doctrine, Section 230