WTA Questions Apparent FCC Plan to Shift USF Money From USAC Control to US Treasury
WTA voiced concern about apparent FCC plans to transfer to the U.S. Treasury USF money currently managed by the Universal Service Administrative Co. "WTA wondered why there has not yet been commenced a formal rulemaking wherein the proposed transfer plans…
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and revised USF administration procedures and rules could be reviewed, analyzed and commented upon," said its filings (here, here) Monday in docket 05-195 on meetings with aides to Chairman Ajit Pai and Commissioner Mignon Clyburn. It cited questions and concerns, including: How would Treasury involvement "reduce risk" and "ensure continued strong financial management" by interposing a new group of Treasury offices and employees between collection and distribution functions performed by USAC since 1999? Who will distribute moneys for the high-cost, Lifeline, E-rate and rural healthcare mechanisms -- USAC or Treasury? WTA is "very concerned" about some statements in a GAO report (see 1706290037) "that appears to have initiated or accelerated the apparent transfer plans," it said. "WTA is concerned about the increased levels of unpredictability likely to be injected into USF administration and revenue streams by the contemplated transfer to Treasury. WTA members and other [RLECs] must employ 10-to-30-year loans to extend and upgrade their broadband networks, and will not be able to obtain or repay such loans if their critical USF revenue streams are periodically disrupted or otherwise become uncertain." The FCC didn't comment.