The Universal Service Fund Working Group¹—a bipartisan, bicameral group of Members of Congress—is seeking input from stakeholders across the country to explore the current state of the USF. The Working Group aims to provide a bipartisan forum to guide reforms to the USF, ensuring that connectivity reaches Americans in every community across the nation.

Background

In the Communications Act of 1934, Congress declared that all people in the United States shall have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. For many years, the Universal Service Fund (USF) operated as a mechanism by which interstate long-distance carriers were assessed to subsidize telephone service to low-income households and high-cost areas.

Through the Telecommunications Act of 1996, Congress expanded the traditional definition of universal service—affordable, nationwide telephone service—to include affordable services for rural health care providers, schools, and libraries.

Today, the Federal Communications Commission (FCC) provides universal service support through four mechanisms:

1. The High Cost program provides support through more than a dozen separate legacy and modernized funds to eligible telecommunications carriers (ETCs) to deliver affordable voice and broadband service in rural areas that would otherwise be unserved or underserved. The legacy funds support voice service and the modernized funds that make up the Connect America Fund (CAF) program are bringing broadband to rural America.
2. Lifeline (the Low Income Support Mechanism) helps make communications services more affordable for low-income consumers. Lifeline provides subscribers a discount on qualifying monthly telephone service, broadband Internet service, or bundled voice-broadband packages purchased from participating wireline or wireless providers.
3. The Rural Health Care Support Mechanism provides funding to eligible health care providers for telecommunications and broadband services necessary for the provision of health care. 
4. The Schools and Libraries Support Mechanism, popularly known as the "E-Rate," provides telecommunication services (e.g., local and long-distance calling, high-speed lines), Internet access, and internal connections (the equipment to deliver these services) to eligible schools and libraries.

USF Questions

The USF Working Group is seeking comments on a variety of questions relating to the effectiveness of USF programs and potential reforms.

1. Effectiveness of Programs

• How should Congress evaluate the effectiveness of each USF program in achieving its respective mission to uphold universal service?
• How well has each USF program fulfilled Congress' mandate in Section 254 of the Communications Act of 1996?
• Has the FCC adequately assessed each USF program against consistent metrics for performance and advancement of universal service?

2. Consideration of Reforms

• What reforms within the four existing USF programs would most improve their:
  • Transparency;
  • Accountability;
  • Cost-effectiveness;
  • Administration; and
  • Role supporting universal service?
• What reforms would ensure that the USF contribution factor is sufficient to preserve universal service?
• What reforms would reduce waste, fraud, and abuse in each of the four USF programs?
• What actions would improve coordination and efficiency among USF programs and other FCC programs, as well as broadband programs housed at other federal agencies?
• For any recommendations on reforms, does the FCC currently have the feasibility and authority to make such changes?
• Is the USF administrator, the Universal Service Administrative Company (USAC), sufficiently accountable and transparent? Is USAC’s role in need of reform?

Stakeholders can file answers to these questions along with any additional comments through the USF Working Group comment portal. Comments are due by September 15, 2025.

Notes

1. The USF Working Group is led by Senators Deb Fischer (R-NE) and Ben Ray Luján (D-NM), Chair and Ranking Member of the Telecommunications and Media Subcommittee, and includes Senators Shelley Moore Capito (R-WV), Amy Klobuchar (D-MN), Jerry Moran (R-KS), Gary Peters (D-MI), Dan Sullivan (R-AK), and Jackie Rosen (D-NV) as well as Representatives Richard Hudson (R-NC-9) and Doris Matsui (D-CA-7), Chair and Ranking Member of the Communications and Technology Subcommittee.

The Benton Institute for Broadband & Society is a non-profit organization dedicated to ensuring that all people in the U.S. have access to competitive, High-Performance Broadband regardless of where they live or who they are. We believe communication policy - rooted in the values of access, equity, and diversity - has the power to deliver new opportunities and strengthen communities.

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