USTelecom urged legislative action to shore up lawmakers’ mandate for the USF amid the “existential threat” posed by the 5th U.S. Circuit Court of Appeals’ 2024 en banc decision that the program’s contribution factor is unconstitutional (see 2407240043). The U.S. Supreme Court is reviewing the 5th Circuit’s ruling (see 2501170046). In an open letter Friday, USTelecom said Congress should “reaffirm” its bipartisan will to maintain USF “and reform how the program is funded.” It added, “Reform must begin by requiring Big Tech companies that benefit massively from universal connectivity to join in contributing to this vital national commitment.” Some lawmakers and other observers believe Senate Commerce Committee Chairman Ted Cruz, R-Texas, may move Congress’ USF revamp toward making the program subject to the federal appropriations process (see 2411270060). In addition, USTelecom said NTIA, under President Donald Trump, “should roll back rate regulation and other requirements” for the $42.5 billion BEAD program “that Congress never asked for, while retaining a significant role for fiber, the high-speed broadband gold standard.” Removing BEAD requirements Congress didn’t mandate in the 2021 Infrastructure Investment and Jobs Act “would shed the unwanted baggage and accelerate what matters most -- getting the work of connecting everyone done,” USTelecom said. “Restoring a tight focus on the mission -- broadband deployment – can dramatically accelerate efforts to fill gaps in high-speed service, helping unlock economic opportunities and access to innovation throughout” the country. USTelecom also urged lawmakers to “move again” on the American Broadband Deployment Act permitting package that the House Commerce Committee approved in 2023 (see 2305240069). The measure, which groups together more than 20 GOP-led connectivity permitting bills, drew unanimous opposition from House Commerce Democrats, and local government groups continued lobbying against it last year (see 2409180052). “Congress should green light speeding up approvals for more broadband projects on federal lands,” USTelecom said: “With a third of our nation’s land under federal control, federal permitting reform would provide an immediate adrenaline shot to the capacity, sophistication, reach and security of our nation’s information infrastructure.”
Eight former FCC commissioners filed an amicus brief at the U.S. Supreme Court last week urging the justices to overturn the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program. Meanwhile, likely Senate Communications Subcommittee leaders Deb Fischer, R-Neb., and Ben Ray Lujan, D-N.M., meanwhile, led an amicus brief with 27 other House and Senate lawmakers defending the funding mechanism.
Consumers’ Research asked the 5th U.S. Circuit Court of Appeals to vacate the FCC’s USF contribution factor for Q1 of this year, set by the agency last month. The group, and its allies, had already asked the FCC to zero out the contribution factor (see 2412130016), calling it “an unconstitutional tax raised and spent by an unaccountable federal agency.” The 5th Circuit earlier found in a 9-7 en banc decision that the contribution factor is a "misbegotten tax.” That decision is before the U.S. Supreme Court (see 2412100060). “Congress’s standardless delegation to the FCC of legislative authority to raise and spend nearly unlimited money via the Universal Service Fund violates Article I, section 1 of the U.S. Constitution,” said the filing with the court: USF charges “are taxes and therefore Congress’s standardless delegation to the FCC of authority to raise and spend nearly unlimited taxes violates Article I, section 8” of the Constitution.
Communications industry executives and former federal officials said during a Practising Law Institute event Tuesday they see a likely GOP-led budget reconciliation package next year as a potential vehicle for legislation that would reinstate the FCC’s lapsed spectrum auction authority. House Commerce Committee leaders and Senate Commerce Committee Chair Maria Cantwell, D-Wash., have repeatedly attempted to reinstate the authority during this Congress only to have their efforts stall (see 2409170066).
A possible shakeup of the federal Universal Service Fund (USF) will be top of mind for state telecom regulators in the year ahead, NARUC Telecom Committee Chair Tim Schram said in an interview earlier this month at the association’s Anaheim meeting. USF is one of several areas of uncertainty in 2025, said three state consumer advocates in a separate interview at the collocated National Association of State Utility Consumer Advocates (NASUCA) conference.
The extent to which the U.S. Supreme Court decides the USF challenge on theoretical rather than practical grounds could have major implications for whether the court issues a decision that overturns the program's funding mechanism. The court said last week it will hear a challenge to the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision, which found the USF contribution factor is a "misbegotten tax.” Consumers' Research challenged the contribution factor in the 5th Circuit and other courts.
T-Mobile asked that the FCC direct the Universal Service Administrative Co. to make Q-Link Wireless reimburse it for money it owes for using the T-Mobile network. Q-Link Wireless CEO Issa Asad faces prison time and a fine of more than $100 million after pleading guilty to fraud tied to the FCC’s Lifeline program (see 2410160029). Q-Link is required to provide restitution to the commission for Lifeline fraud, but there is no provision to compensate T-Mobile for unpaid bills, said a filing posted Friday in docket 09-197. “Q LINK has been able to retain over $500 million of USF support without fully compensating T-Mobile for the services it provided to Q LINK and indirectly to consumers,” the carrier said. “Re-directing the funds to T-Mobile would simply allow it to receive the Federal benefits for the service that it ultimately provided during the term of its agreement with Q LINK and for the services that it continues to provide to Q LINK’s Lifeline program customers,” T-Mobile said.
A plan for cutting regulations and federal institutions such as the FCC could target broadband access programs and media regulations, but it's likely that a wave of litigation will stymie it, administrative law professors and attorneys told us. Future Department of Government Efficiency (DOGE) heads Vivek Ramasawamy and Space X CEO Elon Musk laid out their plans in a Wall Street Journal opinion column. “It's not to say that maybe some of these changes shouldn't be happening, but, you know, they're taking a wrecking ball to fix something that requires a little bit more finesse than that,” said University of Idaho law professor Linda Jellum. Asked about possible DOGE cuts at the FCC, incoming FCC Chairman Brendan Carr last week told reporters, “There's no question, there's tons of room for driving more efficiency at the FCC." He didn't elaborate.
ANAHEIM, Calif. -- The NARUC Telecom Committee on Monday cleared draft resolutions on phone number conservation, the Universal Service Fund and utility coordination on broadband deployment. A USF panel that day described how reform could happen with Republicans controlling the FCC and Congress next year. Also, the affordable connectivity program (ACP) could return in 2025 despite Washington’s partisan climate, said Sanford Williams, deputy chief of staff for FCC Chairwoman Jessica Rosenworcel, during a collocated National Association of State Utility Consumer Advocates (NASUCA) meeting. State utility regulators are holding their annual meeting here this week.
The Nebraska Public Service Commission sought additional feedback on Nebraska Universal Service Fund (NUSF) distribution (docket NUSF-139). Commissioners voted 5-0 at their livestreamed session Tuesday to approve an order seeking comments by Nov. 25 and schedule a hearing for Dec. 4 at 10 a.m. CST. The commission hopes to “further refine” a proposed mechanism for distributing high-cost support next year, the order said. The PSC considers the 2025 support mechanism “transitional” as it moves through remaining issues in the docket. “The Commission emphasizes that more work will need to be done to transition the high-cost distribution support mechanism to account for federal and state infrastructure programs, the sustainability of broadband networks, and to ensure that the affordability goals of the NUSF Act will be met.” Under the PSC proposal, released for comment, the commission would keep providing high-cost support to wireline ILECs offering 100 Mbps download and 20 Mbps upload speeds in areas without wireline competitors providing service at that speed. It would also continue supporting ILECs offering 25/3 Mbps speeds, provided it’s in a location that’s “subject to a federally enforceable commitment to provide service at speeds of at least 100/20 Mbps” and that lacks wireline competitors with 25/3 Mbps speeds.