Monday, July 20, 2026
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The FCC Proposes an Overhaul of How the Universal Service Fund Is Run
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White House Faces Stiff Pushback on Subjecting Grants to Political Review
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Some of the nation’s top law enforcement officials were not pleased when the White House embarked on its push to assert more political control over more than $1 trillion in annual federal grants. The proposal, unveiled in May, stood to enable the administration to steer significant funding to causes and organizations aligned with President Trump—and to cancel grants if recipients did not conform to his political views. That troubled a set of groups representing sheriffs, narcotics officers, and district attorneys, which said this month that the “undefined expectations” in Washington could interfere with public safety. The letter was one of roughly 500,000 formal comments that have flooded the Trump administration in recent weeks. Many of the posted submissions expressed misgivings with the draft White House plan to take greater control of federal spending.
Fiber Broadband Association Responds to NTIA Administrator Arielle Roth’s Remarks on the Future of Communications

We agree with Administrator Roth that fiber is one of the greatest communications innovations ever developed and that competition and continuous innovation have made America’s communications ecosystem the strongest in the world. Communications technologies, applications, and services will continue to evolve, but fiber is fundamentally different. It is the foundational infrastructure that enables those innovations. As Administrator Roth noted, fiber is expected to continue to support 6G wireless, artificial intelligence, cloud computing, quantum networking, and technologies yet to be imagined, which all depend on high-capacity, ultra-low-latency fiber networks. Every major advance in communications has driven greater demand for fiber because it provides virtually unlimited capacity through advancements in electronics at each end of the network, rather than requiring replacement of the fiber itself. Our nation should be investing in the infrastructure capable of supporting generations of innovation. Fiber has consistently proven to be that infrastructure, serving as the essential foundation upon which America’s digital economy is built and its AI-powered future will depend.

The Broadband Equity, Access and Deployment (BEAD) Program is designed to close broadband gaps across the country, but getting the funding out the door is only part of the challenge. The harder question is what happens next. Once projects are awarded, states must make sure networks are built on time, on budget, and in alignment with federal requirements, all while many broadband offices are working with limited staff and resources. Colin Reilly, Vice President of Data Strategy and Technical Services at Connected Nation, discusses how states can use risk modeling, machine learning, statistical sampling, and field validation to monitor BEAD projects without trying to inspect every location the same way. The goal is not to add bureaucracy. It is to help states identify issues early, focus resources where they are needed most, and avoid surprises at the end of a project.
On This Nearly Deserted Alaska Island, You Pay to Keep Hundreds of Empty Buildings Wired for Internet

Reporting has found that the Federal Communications Commission's multibillion-dollar Universal Service Fund pays for what often amounts to slow internet access for customers who actually no longer use it. Once home to thousands of sailors and their families, the island emptied after the base closed in 1997. While the state estimated the population to be 77 last year, residents themselves put it at closer to two dozen—meaning the federal internet subsidy to the local telecom amounts to about $14,000 a year per person. And, it turns out, there’s zero indication any of these people are benefiting from it. No one subscribes to the island’s subsidized internet service. Adak residents get online through Starlink, the Elon Musk satellite service that arrived in 2023 without any subsidy from the FCC. People here say it’s up to 40 times faster and costs $90 to $140 per month, compared with the hundreds of dollars a month that Adak Eagle, the local telecom, once collected from customers on top of its subsidy checks. (Adak Eagle’s website currently advertises internet plans for $99 to $550 per month.) But the subsidies remain.
Oklahoma Broadband Office Announces Nation’s First Statewide Initiative to Expand Access to Essential Services Through Public Libraries

The Oklahoma Broadband Office announced a new $14.5 million initiative to expand access to healthcare, workforce services, and digital skills training through Oklahoma's public libraries. The program will make up to 175 community access portals available to libraries across the state, creating new opportunities for Oklahomans to access essential services closer to home. Through this initiative, libraries will be transformed into community access points where residents can participate in virtual primary care appointments, complete telehealth consultations, attend remote job interviews, receive workforce development services, and build digital literacy skills in a secure, private environment. The program’s scale is a national first, with over 75 rural libraries and regional library systems expressing interest in an initial survey from the Oklahoma Broadband Office. This program is made possible through the ARPA Capital Projects Fund.

Rep Mariannette Miller-Meeks, M.D. (R-IA) has introduced the Conversational AI Services Act, federal legislation to protect children and teenagers from the unique psychological risks posed by generative AI chatbots. The bill is modeled directly after Iowa's SF 2417, signed into law earlier this year by Governor Kim Reynolds with unanimous, bipartisan support. The Conversational AI Services Act will:
- Empower parents by requiring AI operators to provide parental supervision tools for a minor's screen time and account settings.
- Ban deceptive personas by prohibiting AI from simulating romantic relationships, claiming sentience, or acting as an unlicensed medical or mental health professional.
- Stop tech addiction by banning gamification features, like unpredictable reward points, designed to artificially increase screen time.
- Protect against explicit content by requiring strong guardrails against the generation of sexually explicit material for minors.
- Provide crisis support by requiring AI services to direct users expressing suicidal ideation to expert crisis hotlines.

Alumni of the Obama and Biden administrations are launching a public policy initiative aimed at defining the center-left perspective on AI. Democrats across the country are taking action on AI as the midterms near, implementing data center moratoriums and running for office on AI safety platforms. The American Innovation Policy Forum is looking to shape the Democratic vision for AI ahead of 2028. The group plans to hold listening sessions across the country to zero in on community concerns about AI and bring them back to Washington. Those conversations will inform policy recommendations that fellows will brief lawmakers on starting in the fall. Former senior Obama and Biden officials from regulatory agencies and the White House, along with other experts, will serve on a council to advise the effort and the forum's fellows.

If you are a school or library seeking E-Rate discounts, a rural health care provider, a Lifeline provider serving low-income households, or a carrier deploying networks with high-cost support, you deal with the Universal Service Administrative Company (USAC)—the private, not-for-profit corporation that administers the Federal Communications Commission's (FCC) Universal Service Fund (USF). On July 16, 2026, the FCC released a draft Notice of Proposed Rulemaking (NPRM), Maximizing Efficiencies in Universal Service Administration (WC Docket No. 26-173), that puts nearly every aspect of that relationship on the table: who USAC can audit, how it calculates money it claws back, whether you must repay disputed funds while your appeal is pending, whether your community keeps a dedicated seat on USAC's Board of Directors—and whether USAC remains the USF's administrator at all. The draft has been circulated for consideration at the FCC's August open meeting on August 6. The contents of the NPRM remain subject to change. If adopted, comments will be due 30 days after publication in the Federal Register, with reply comments due 60 days after publication.

I recently co-authored a Harvard Business Review note about the impact of Trump vs Slaughter—the case in which the Court allowed the President to fire independent regulators without cause—on businesses generally. However, I want to address the specific impact on the Federal Communications Commission and the businesses regulated by the FCC’s rules and procedures. There are nuances unappreciated by the commentary to date and particular dangers—and a need for a response—that FCC-related enterprises face that the general business community does not. Further, it is in the interest of those enterprises to try to shape the post-Slaughter environment that will create a fair and more predictable regulatory environment in the years to come. One widespread view is that, with the current FCC Chair doing the most important work through the bureaus, and his belief that the FCC was already part of the Administration and not independent, there is little to no impact. Another view is that Slaughter settles the question of the President’s control of the FCC so that while there is an impact, there is no remaining legal question as to the President’s total power over the agency. Both are reasonable observations. However, I think both views miss important nuances about the law and business impact.
[Blair Levin is a policy analyst at New Street Research and a Senior Nonresident Fellow at the Brookings Institution. He previously served as Executive Director of the FCC's National Broadband Plan and as Chief of Staff to FCC Chairman Reed Hundt.]

Public Knowledge announced the awardees for the 2026 IP3 Awards. They are:
- Internet Protocol Award- Adrianne Furniss: Adrianne Furniss is the Chair of the Board of Directors and Trustee of the Benton Institute for Broadband & Society. During her decade-long tenure as Executive Director, Furniss focused the organization on advancing broadband policies to ensure that robust, affordable broadband service delivers new opportunities and equity to communities across the nation.
- Intellectual Property Award- Alan Inouye: Alan S. Inouye is an acclaimed writer and adviser on public policy and advocacy through his consulting firm, The Policy Connection. Until 2025, Alan served as the head of public policy and advocacy for the American Library Association.
- Information Policy Award- Sayash Kapoor: Sayash Kapoor is a computer science Ph.D. candidate at Princeton University and an incoming assistant professor at the UC Berkeley School of Information. He is a co-author of AI Snake Oil—named one of Nature’s 10 best books of 2024—and was named to TIME’s inaugural list of the 100 most influential people in AI.
- Information Policy Award- Professor Arvind Narayanan: Professor Arvind Narayanan is a professor of computer science at Princeton University and the director of the Center for Information Technology Policy. A co-author of AI Snake Oil, his groundbreaking research was among the first to show how machine learning reflects cultural stereotypes. Like Kapoor, he was named to TIME’s inaugural list of the 100 most influential people in AI and is a recipient of the Presidential Early Career Award for Scientists and Engineers
- President’s Award- Commissioner Anna Gomez: Public Knowledge is proud to present the President’s Award to Federal Communications Commissioner Anna M. Gomez for her steadfast commitment to ensuring the law honors and serves the public. Bringing over 30 years of public and private sector experience in communications law, Commissioner Gomez has held pivotal roles—including Deputy Administrator at the National Telecommunications and Information Administration, where she oversaw the successful transition to digital television and spearheaded broadband networks for first responders, as well as serving as Counsel to the U.S. Senate Commerce Committee.
Benton (www.benton.org) provides the only free, reliable, and non-partisan daily digest that curates and distributes news related to universal broadband, while connecting communications, democracy, and public interest issues. Posted Monday through Friday, this service provides updates on important industry developments, policy issues, and other related news events. While the summaries are factually accurate, their sometimes informal tone may not always represent the tone of the original articles. Headlines are compiled by Kevin Taglang (headlines AT benton DOT org), Grace Tepper (grace AT benton DOT org), and Zoe Walker (zwalker AT benton DOT org) — we welcome your comments.
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