The House began considering amendments to the Democrats’ Moving Forward Act infrastructure legislative package (HR-2) Tuesday, including 10 on broadband. The underlying measure contains $100 billion in broadband funding, with $9 billion for a Broadband Connectivity Fund to give eligible households an “additional broadband benefit” and $5 billion for E-rate. It also includes $12 billion for next-generation 911 (see 2006180062). House Majority Whip James Clyburn of South Carolina and other Democrats pushed for the measure's adoption. Republicans argued it's a purely partisan measure that has no chance of making it through the Senate or getting support from President Donald Trump.
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.
As broadband bills advance in states responding to the coronavirus, former acting and possibly next FCC Chair Mignon Clyburn said states will be at the “epicenter” of recovery work. Monday at the Mid-Atlantic Conference of Regulatory Utilities virtual conference, the Democrat sought an “uplifting and all-inclusive recovery” that would include a long-awaited USF contribution revamp and increasing Lifeline’s $9.25 monthly government-funded discount.
Industry, USF recipients and consumer advocates are exploring new ways to fund USF. Talks began last year and remain in early stages, participants said in interviews. Parties fear the contribution factor, which reached a record high of 25% last fall (see 1909130003), isn't sustainable. Some want to present a unified funding proposal to Congress or the FCC. Most want the matter addressed next year.
Prospects for advancing legislation on allocating proceeds from the FCC’s coming auction involving of spectrum in the 3.7-4.2 GHz C band have become increasingly doubtful after more than two months in which negotiations were largely in stasis due to Capitol Hill's shift in priority to the COVID-19 pandemic, lawmakers and communications sector officials said in interviews. Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., and Democratic backers of C band remain interested in pressing forward. Republicans on the House and Senate Commerce committees believe the time for pursuing legislation has largely passed given FCC moves to advance the auction. Wireless and satellite interests cited concerns with the FCC's order in petitions for reconsideration filed Wednesday (see 2005270031).
Major associations wrote congressional leaders Thursday backing legislation funding replacement of Huawei and ZTE equipment in U.S. networks. Industry questioned the FCC approach on equipment by the two Chinese companies, in comments on how provisions in the Secure and Trusted Communications Networks Act affect supply chain security rules. The March law lacks funding for gear replacement (see 2003130083). Industry representatives told us they hope lawmakers fund it soon.
Senate Commerce Committee members signaled interest in including further emergency broadband funding in the next COVID-19 package. Some senators urged their colleagues to think beyond the crisis. The Wednesday hearing featured few references to House Democrats' Health and Economic Recovery Omnibus Emergency Solutions (Heroes) Act (HR-6800), which contains substantial broadband funding. The bill also includes language to make broadcasters and other local outlets eligible for the Paycheck Protection Program. Both issues drew increasing support since the March enactment of the Coronavirus Aid, Relief and Economic Security Act (see 2004300058). The House is expected to vote on HR-6800 as soon as Friday.
Industry, policymakers and consumer advocates are seeking new ways to expand Lifeline enrollment and benefits in response to the public health and economic crisis, we're told. Some advocates are pursuing emergency funding to provide a more robust residential broadband Lifeline benefit to meet the demands of working and learning at home. Stay-at-home orders put restraints on Lifeline promotion and enrollment.
Commissioners approved an NPRM Thursday on the proposed 5G Fund over partial dissents by Commissioners Jessica Rosenworcel and Geoffrey Starks, as expected (see 2004200063). Both said the NPRM offers a false choice and the FCC can’t rely on bad maps or wait until 2023 or later to start offering support. Commissioner Mike O’Rielly supported the NPRM, but also had concerns. Members met via teleconference, for the second month during COVID-19.
Senate Commerce Committee ranking member Maria Cantwell, D-Wash., told us Wednesday she and other congressional Democrats plan to push for the next bill addressing COVID-19 to include broadband capacity and distance learning provisions. A compromise of a third stimulus bill unveiled that day failed to include those priorities. Capitol Hill leaders and President Donald Trump’s administration reached a deal early Wednesday. A cloture vote on the COVID-19 legislative vehicle (HR-748) was expected to have happened Wednesday night. Senate Judiciary Committee Chairman Lindsey Graham of South Carolina and three other Republicans made that outcome more uncertain when they objected to the bill's proposed amount of unemployment insurance.
The COVID-19 pandemic comes as Ajit Pai enters what is likely to be the homestretch of his time as FCC chairman. Pai has sketched out an ambitious agenda for the rest of 2020, but no one knows how long the pandemic will last. Industry officials agree it will likely slow work on at least some items due to refocusing on coronavirus-related orders. The crisis offers Pai a chance to write a new legacy, they said.