The USF contribution factor for Q1 2025 will likely rise from 35.8% during Q4 2024 to 38.8%, emailed analyst Billy Jack Gregg on Saturday. Gregg noted that demand will also increase by $124.5 million from the previous quarter. "If revenues for the first quarter of 2025 are the same as revenues for the fourth quarter 2024, the USF assessment factor for the first quarter of 2025 will increase to 38.8%," he said: "However, if the trend of declining quarterly revenues continues, the USF assessment factor for the first quarter will be higher than 38.8%."
A panel of the 5th U.S. Circuit Appeals Court on Monday gave little indication how it would rule as its three judges heard arguments on overturning the agency's Oct. 25 declaratory ruling authorizing E-rate funding for Wi-Fi on school buses (see 2312200040). Maurine and Matthew Molak of Texas brought the case, arguing that the ruling went beyond the commission’s authority to act under the Communications Act.
U.S. Supreme Court justices Monday appeared divided on telecom industry arguments that reimbursement requests submitted to the Universal Service Administrative Co.-administered E-rate program can’t be considered “claims” under the False Claims Act (FCA). Justices peppered lawyers for both sides with questions during oral argument as they heard Wisconsin Bell v. U.S., a case from the 7th U.S. Circuit Appeals Court (see 2410070047).
The outcome of Tuesday's Senate elections could scramble Senate Commerce Committee Republicans’ leadership structure given the competitive contest between ranking member Ted Cruz, R-Texas, and Rep. Colin Allred, his Democratic challenger. Four other panel members also face tough or competitive reelection fights (see 2411040051). Democratic leaders on the House and Senate Commerce committees indicated they intend to stay in those roles in the upcoming 119th Congress regardless of the election’s outcome.
The Software & Information Industry Association (SIIA) backed the FCC's petition to the U.S. Supreme Court for a writ of certiorari regarding the 5th U.S. Circuit Court of Appeals' ruling on the Universal Service Fund contribution mechanism. SIIA said in an amicus brief Wednesday (No. 24-354) that it's "incumbent upon the Court to tread lightly, and to fully account for the consequences, before disrupting that massively important (and enormously beneficial) status quo" (see 2410180007). The group cited the USF-funded E-rate program's importance, saying a "downstream consequence" of affirming or declining to review the decision would include a "sharp reduction in funding" and "exacerbate the very inequities that the Universal Service Fund in general ... was meant to redress."
Grover Norquist, Americans for Tax Reform president, and James Erwin, executive director-ATF subsidiary Digital Liberty, led a Tuesday letter with 24 other mostly conservative-leaning leaders urging that congressional lawmakers “oppose any attempts to impose new taxes on broadband service, including by assessing broadband for contributions to the Universal Service Fund.” A bipartisan congressional working group has been eyeing a potential USF revamp, while Senate Commerce Committee ranking member Ted Cruz, R-Texas, wants Congress to make the program subject to the federal appropriations process (see 2403060090). “While USF faces fiscal challenges, these should ideally be addressed through distribution reform,” Norquist and the other leaders said in the letter, which we obtained before its public release. “If the contribution base for USF is expanded to include mass-market broadband providers, it will be American households that foot the bill to keep this program on life support.”
NARUC Telecom Committee Chair Tim Schram seeks better coordination and greater cost sharing related to digging amid an influx of government funding for broadband deployment, the Nebraska Republican said in an interview. NARUC circulated draft resolutions Tuesday for the state utility regulator association’s Nov. 10-13 meeting in Anaheim. In addition to a Schram proposal about coordination, the Telecom Committee plans to weigh drafts on optimizing phone number resources and defending the constitutionality of the federal universal service fund (USF) surcharge mechanism.
Digital First Project Executive Director Nathan Leamer on Wednesday said whoever chairs the FCC during the next administration should take on a more forceful role in advocating for Congress to renew the commission’s lapsed spectrum auction authority. Leamer, who served as an aide to former FCC Chairman Ajit Pai, said during a Georgetown University Center for Business and Public Policy webcast that whichever party wins the White House Nov. 5 will reexamine broadband affordability issues. He believes the FCC will have to brace for the impact of potential federal court rulings striking down its recent orders reclassifying broadband as a Communications Act Title II service and instituting anti-digital discrimination rules.
Some candidates for state utility commissions promised to take on broadband and other telecom matters if they win election this year. Eight states will elect utility regulators this year: Alabama, Arizona, Louisiana, Montana, Nebraska, North Dakota, Oklahoma and South Dakota. In addition, a New Mexico ballot question will ask voters to authorize millions of dollars for upgrading public safety communications. Meanwhile, Oregon voters will consider a universal basic income that would require Comcast and other big companies to foot the bill.
Elon Musk has emerged as among the most enthusiastic supporters of former President Donald Trump’s presidential campaign, giving nearly $75 million in three months to his pro-Trump America PAC. Musk has danced at a Trump rally wearing a “dark MAGA” hat and announced Wednesday he would support Trump in a series of appearances throughout Pennsylvania.