Participants Urge Against Appropriations for USF

Broadband trade groups participating in the Federal Communications Commission’s Universal Service Fund program urged lawmakers not to fund the program through Congressional appropriations. “USF funding should not shift to an appropriations-based model. Doing so would undermine all of the programs due to the uncertainty inherent in the annual appropriations process,” the Competitive Carriers Association said in comments to a group of legislators working on modernizing the program. “For example, many carriers plan their builds and maintenance in 3-5 year cycles, so a rational carrier cannot completely shift its annual budgeting cycle to be dependent on appropriations, for it has not been consistent nor reliable.” The roughly $9 billion-per-year broadband subsidy supports rural broadband networks, plus internet discounts for low-income households, schools and libraries, and healthcare centers. It’s been funded since the 1990s by fees on interstate voice revenue, with the accounting work delegated to the Universal Service Administrative Company, which the FCC oversees.