Senate Appropriators Strike Down USF Primary Line Recommendations
The Senate Appropriations Committee voted Wed. to prevent the FCC from imposing a primary-line restriction on Universal Service Fund (USF) support. With no discussion or objection, the amendment to the Senate Appropriations Commerce Justice State bill will forbid the FCC from expending any funds for a USF system in which funds could be distributed only for “primary lines.” The amendment was pushed by Senate Communications Subcommittee Chmn. Burns (R-Mont.) and supported by Sens. Dorgan (D- N.D.), Stevens (R-Alaska), Hollings (D-S.C.), Gregg (R- N.H.), Brownback (R-Kan.), and Durbin (D-Ill.), sources said. Burns said the joint board proposal would hurt Mont.’s economy, which depends on small business. “In short, if the FCC moves forward with this potentially devastating recommendation, rural America would have a harsh winter of economic isolation,” Burns said.
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NTCA described the amendment as a “major victory” for rural telcos and consumers, and OPASTCO said it was a “major step in the right direction.” “We strongly believe that forcing a consumer to choose one line at an affordable and comparable rate is not the appropriate means to controlling the growth of” USF, said NTCA CEO Michael Brunner: “There are more effective means to ensuring this fund is maintainable.” Randy Tyree, OPASTCO dir.-legislative & industry affairs, said the bill was a positive step, but added the legislation has “a ways to go… This is major step in our effort to protect” USF: The primary line provision would “hurt the economics of rural providers.”
The CJS bill now goes to the Senate floor. The House has already approved its CJS spending bill (HR-4754), which doesn’t address USF. The Senate Appropriations Committee has been looking to quickly move appropriations bills as the congressional session winds down. Senate Appropriations Chmn. Stevens (R-Alaska) has said he believes an omnibus appropriations bill will be needed to finish the spending bills. Others speculate a “lame-duck” session might be needed to finish congressional spending bills.
The amendment strikes a blow at a recommendation of the FCC’s Joint Federal-State Board on USF, which recommended that only primary lines be eligible for USF support. FCC Comr. Adelstein has objected to the proposal.