Many Variables Could Trip Up USF Appropriations Amendment
Many industry and Hill sources said an amendment to the Senate Commerce Justice State (CJS) appropriations bill that would prevent the FCC from adopting a primary line restriction on the Universal Service Fund (USF) (CD Sept 16 p1) is still a long shot. But while they acknowledged Thurs. the bill still had a long road to travel, it was certainly possible it could pass.
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A spokeswoman for Senate Appropriations Committee Chmn. Stevens (R-Alaska) said he was still trying to move each appropriations bill on its own. But several sources said it was possible that with just 2 weeks left before the target date for adjournment, several appropriations bills would have to be joined into an omnibus appropriations bill. If CJS is included in the omnibus, some policy-based amendments could be removed to smooth passage, industry and Hill sources said. Congress has passed only one appropriations bill -- Defense -- and of the 12 remaining bills, the Senate has passed only the Homeland Security appropriations bill. The Senate Appropriations Committee has passed all but 3 of its spending bills.
The amendment would prevent the FCC from spending any money to carry out the FCC’s Joint Federal-State Board on USF recommendation that USF only go towards the “primary line,” which could prevent USF funding of secondary fax lines, wireless lines and other services that go beyond the primary line. The controversial recommendation has detractors in the FCC, including Comr. Adelstein.
The amendment to the bill had the support of rural carriers, including NTCA, OPASTCO, USTA and Western Wireless. “USTA believes the primary line restriction would have a devastating effect on the overall health of the network and therefore we support the amendment,” said Tom Amontree, USTA senior vp. Mark Rubin of Western Wireless said: “We are gratified that the Senate Appropriations Committee shared the view… that a primary line restriction is not the best way to control the growth of the high cost fund.”
While the fate of the amendment remains unclear, sources said the Senate wouldn’t likely strip the amendment should the CJS bill face floor vote, noting that the amendment could very well be stripped from an omnibus bill. However, it’s unclear how the House would proceed.
One House source said House Commerce Committee Chmn. Barton (R-Tex.) was likely to oppose the amendment in a conference with senators on the CJS amendment. Barton’s opposition would more likely be procedural and jurisdictional than an on the merits. Neither House nor Senate Commerce Committee has had hearings or voted on bills relating specifically to the proposed primary line restriction. Because of that, Barton is likely to fight to have the measure removed, a House source said -- though it could be a testy issue since the amendment has support from Stevens, who would likely be the Commerce Committee chmn. next year if the Republicans retain Senate control.
Industry and Hill sources said there was no consensus in the House on how the primary line restriction would be treated. However, one House source said Republicans would likely oppose a primary line restriction since it would raise rural telephone rates and many House Republicans represent rural areas.
Also, the Senate CJS appropriations bill raised spending for NTIA, the FCC and the FTC. The FCC would receive $282 million, $8.4 million more than last year. NTIA would get $58.2 million, $7.1 million more than last year and $33.6 million above the Administration’s request. The FTC would get $207.7 million, $22.2 million above last year and $2.3 million above the Administration’s request.