Time is ticking for the future of the Universal Service Fund

The clock is ticking until the Supreme Court issues its verdict on the $8 billion Universal Service Fund. Even if USF survives the legal battle, the question remains—what then? The Court's decision may ramp up the need for reform. But the restructured Broadband Equity, Access and Deployment program “weakens the economic and political rationale” for USF, said New Street Research Policy Analyst Blair Levin. Four programs fall under the USF umbrella: Connect America Fund (i.e; the High-Cost Fund), Lifeline, E-Rate and Rural Health Care. The first is geared towards subsidizing rural broadband deployments, mainly through the $20.4 billion Rural Digital Opportunity Fund. Levin has said the Supreme Court “is more likely than not” to uphold the USF’s constitutionality. But with satellite broadband further in the BEAD mix, the federal government may question the need for a High-Cost Fund altogether.