Universal Service Fund

To assist those affected by the Hawai’i Wildfires, this temporary waiver of certain Lifeline program eligibility rules will ensure that consumers receiving federal disaster assistance can easily apply for and enroll in the Lifeline program. Because of the exigent circumstances arising from the Hawai’i Wildfires, the FCC finds that there is good cause for further action to ensure that consumers in the affected areas receive critical assistance for their communications needs.

On August 14, 2023, Federal Communications Commission Chairwoman Jessica Rosenworcel responded to lawmakers' concerns about the E-Rate Program and the Notice of Proposed Rulemaking circulated amongst the FCC.

Congress and the Federal Communications Commission must act swiftly and purposefully to ensure that low-income households continue to have sustainably affordable access to communications services through a fully funded low-income program that is structured to effectively close the affordability component of the digital divide while preserving program integrity. National Lifeline Association (NaLA) offers the following recommendations and observations:

Two key Republican lawmakers are opposing a Federal Communications Commission proposal that would expand the E-rate program to allow it to pay for Wi-Fi on school buses and mobile hotspots that schools can loan out to students.

Cuba City Telephone Exchange Co. and Cal-Ore Communications notified the Federal Communications Commission of their decisions to withdraw from the Rural Digital Opportunity Fund (RDOF) support program. Cuba City and Cal-Ore’s letters constitute notification to the FCC that these carriers are defaulting on their obligations to meet their service milestones.

The Coalition of Rural Digital Opportunity Fund (RDOF) Winners has filed an emergency petition with the Federal Communications Commission regarding its request for extra funding or other relief measures. The group argues that the COVID pandemic has raised deployment costs dramatically and that the funding the companies won is now insufficient.

Over the past 26 years, the Universal Service Fund — a federal subsidy pool collected monthly from American telephone customers — has spent close to $9 billion a year to give Americans better phone and internet connections, wiring rural communities in Arkansas, inner-city neighborhoods in Chicago, and public libraries and schools across the country. Now it faces the biggest crisis of its existence, and Congress appears paralyzed in the effort to fix it.

The Federal Communications Commission published its first “illustrative run” of what the offers might be to broadband providers who elect extended subsidies in exchange for agreeing to bring 100/20 broadband to every location in their “study area.” With this illustrative run document, it now appears that if all the ISPs accept the FCC’s offer, 1.3 million locations would be ineligible for BEAD funding because the FCC would have an enforceable commitment from the ISP to bring service to that location.

On July 24, 2023, the Federal Communications Commission authorized a new subsidy program, Enhanced A-CAM (Alternate Connect America Cost Model). This program will extend subsidies to small, regulated telephone companies at a cost of about $1.27 billion per year for ten years.

Recognizing the impact of the coronavirus (COVID-19) pandemic on financial markets and on the ability of providers to successfully conduct their operations, the Federal Communications Commission's Wireline Competition Bureau (Bureau) waived the FCC’s letter of credit (LOC) rules for Connect America Fund Phase II auction (Auction 903) and Rural Broadband Experiments (RBE) support recipients in 2020 and 2021. Recipients of support from both programs were permitted to comply with the less extensive letter of credit rules established by the FCC for the Rural Digital Opportunity Fund (RDOF).