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universal service
FCC Chairman Rosenworcel argued that the spending would reduce USF’s stability.
WASHINGTON, March 12, 2024 – Ranking Member of the Senate Commerce Committee Ted Cruza Texas Republican, last week called on Congress to take over the Federal Communications Commission’s broadband subsidies.
The FCC’s Universal Service Fund spends about $8 billion annually on broadband subsidy programs. These will go to low-income households, schools, libraries, medical centers, and even infrastructure in hard-to-reach areas.
USF’s funding comes from fees to voice providers, but its contribution base has shrunk since the fund was established in 1996. The bicameral working group, which is not affiliated with Mr. Cruz, It’s been going on for months We are evaluating potential reforms to achieve this goal. provide more sustainable finance.
Cruz said he would like to see funding for U.S. Forces Korea come directly from Congressional appropriations. in paper A statement released Thursday argued that the board’s ability to control both USF’s collections and expenditures has diluted the fund’s accountability.
“To control spending, Congress, not the FCC, must be in charge of defining universal service and deciding where USF funds go,” he wrote.
But he said the current framework would keep high-cost programs that fund the construction and maintenance of broadband infrastructure in hard-to-reach areas “given ongoing multi-year contracts with providers.” admitted that “that might make sense.”Components of a high-cost program more than half Reduce spending for U.S. Forces Japan and support long-term infrastructure subsidies such as: Rural Digital Opportunity Fund.
Cruz also pushed to combine USF’s Lifeline program with the At-Risk Affordable Connections program. repeated his opposition We are expanding the E-Rate program to include off-campus Wi-Fi hotspots. He wrote that he was looking forward to “legislation” regarding reform of the US Forces Korea.
In January, the FCC Chairman jessica rosenworcel He told the USF Working Group, which is also working on legislation, that it would support the fund through Congressional spending. will have a negative impact USF program.
She cited the example of ACP, which is funded by appropriations. Although the foundation provides monthly internet discounts to more than 23 million low-income households and has garnered widespread support, the agency currently Exit the program as bipartisan legislation. fund the program Both chambers are stagnant.
“Meanwhile, USF is providing ongoing and predictable support in amounts established by the Commission.” Written by Rosenworcel. “Being able to count with this system has been an important part of the success of the USF program.”
Consumers Research, a conservative nonprofit organization, also oppose the FCC Ability to operate USF.The group has repeated taken to federal court Congress has not placed adequate guardrails on the FCC’s ability to collect fees for fund services, and the FCC has abused its authority by delegating it to USAC, an organization controlled by the Commission. claimed to have done so.
The Sixth Circuit, Eleventh Circuit, and D.C. Circuit upheld the constitutionality of the fund. The 5th Circuit initially did so, but agreed to rehear the case with a full bench in July 2023.
Oral arguments were held in September and no verdict has been issued yet, but the consumer review has already ruled. asked the Supreme Court The group argued in January that the Fifth Circuit was “poised” to rule in its favor and create a contradictory precedent.
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