House Dems urge FCC to cap USF high-cost fund

Thirty-four House Democrats wrote to Federal Communications Commission Chairman Julius Genachowski, urging him to cap the amount of taxpayer funds used to subsidize broadband coverage in rural areas.

The high-cost portion of the fund has swollen significantly over the past decade to $4.5 billion in fiscal 2010. The Members who signed the letter, including Reps. Doris Matsui (D-CA), Anna Eshoo (D-CA), Henry Waxman (D-CA) and Edward Markey (D-MA), argue the fund should be capped because the current funding would be more than adequate to support broadband deployment. “As the National Broadband Plan noted, unrestrained growth in the fund not only imposes a greater cost burden on consumers, who pay into the fund via a contribution factor that continues to reach higher and higher levels, but it could also jeopardize public support for the goals of universal service,” the lawmakers wrote. “The collection of up to $4.5 billion per year, appropriately targeted to high-cost areas, should provide sufficient funding to support broadband deployment. Within that context, we believe it is clear that uncontrolled growth of the fund is unsustainable.” The lawmakers also argued that encouraging and funding broadband-adoption programs is crucial to the success of the program.