American Association for Public Broadband

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The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

The USF Survives Supreme Court, But Massive Challenges Remain

The FCC’s Universal Service Fund (USF) has survived a Supreme Court challenge by a right wing activist nonprofit, but the program – which for decades has helped extend broadband to underserved rural homes and schools – still faces a precarious immediate future.

It is a peculiar political story, given that the rural regions that overwhelmingly vote for Republicans are now seeing Republicans try to dismantle a program that has been crucial for rural investment and development.

The FCC established the fund in 1997 in compliance with the Telecommunications Act of 1996. Historically a program with broad, bipartisan support, the USF leverages around $8 billion annually to expand broadband access to rural communities, libraries, and schools. The program is primarily paid for by consumers via a small levy on traditional phone lines.

In 2023, a right wing activist nonprofit named “Consumer’s Research” sued the government over the USF, claiming that the FCC lacked the constitutional authority to levy a fee on consumers’ bills. The lawsuit claimed that the USF depended on what amounted to an “unconstitutional tax” on consumers to fund operations.

Trump Administration Imposed BEAD Changes Introduce Significant New Delays

Trump administration changes to the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grant program are poised to introduce years of potential new delays to the already slow-moving program, potentially undermining the program’s goal of bringing universal broadband access to mostly rural communities.

Worse, the looming changes would eliminate efforts to ensure taxpayer-funded broadband is affordable for low-income Americans, while driving billions in new subsidies to the world’s richest man and Trump mega donor Elon Musk.

Testifying this week before a Senate Appropriations Committee, Commerce Secretary Howard Lutnick confirmed that the National Telecommunications and Information Administration (NTIA) will "soon" issue a new Notice of Funding Opportunity (NOFO) that states will have 90 days to respond to.

The revisions will ensure that billionaire Elon Musk – and his capacity-constrained satellite broadband network Starlink – will receive significantly more taxpayer money. Such Low-Earth orbit satellite networks were slated to get some funds, but federal changes may result in them dominating grant funding, overruling the mix of technology states had originally preferred.

Other changes being implemented include elimination of provisions ensuring affordable access for low-income Americans.

Trump Administration Imposed BEAD Changes Introduce Significant New Delays

Trump administration changes to the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grant program are poised to introduce years of potential new delays to the already slow-moving program, potentially undermining the program’s goal of bringing universal broadband access to mostly rural communities.

Worse, the looming changes would eliminate efforts to ensure taxpayer-funded broadband is affordable for low-income Americans, while driving billions in new subsidies to the world’s richest man and Trump mega donor Elon Musk.

Testifying this week before a Senate Appropriations Committee, Commerce Secretary Howard Lutnick confirmed that the National Telecommunications and Information Administration (NTIA) will "soon" issue a new Notice of Funding Opportunity (NOFO) that states will have 90 days to respond to.

The revisions will ensure that billionaire Elon Musk – and his capacity-constrained satellite broadband network Starlink – will receive significantly more taxpayer money. Such Low-Earth orbit satellite networks were slated to get some funds, but federal changes may result in them dominating grant funding, overruling the mix of technology states had originally preferred.

Other changes being implemented include elimination of provisions ensuring affordable access for low-income Americans.

Trump Administration Imposed BEAD Changes Introduce Significant New Delays

Trump administration changes to the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) grant program are poised to introduce years of potential new delays to the already slow-moving program, potentially undermining the program’s goal of bringing universal broadband access to mostly rural communities.

Worse, the looming changes would eliminate efforts to ensure taxpayer-funded broadband is affordable for low-income Americans, while driving billions in new subsidies to the world’s richest man and Trump mega donor Elon Musk.

Testifying this week before a Senate Appropriations Committee, Commerce Secretary Howard Lutnick confirmed that the National Telecommunications and Information Administration (NTIA) will "soon" issue a new Notice of Funding Opportunity (NOFO) that states will have 90 days to respond to.

The revisions will ensure that billionaire Elon Musk – and his capacity-constrained satellite broadband network Starlink – will receive significantly more taxpayer money. Such Low-Earth orbit satellite networks were slated to get some funds, but federal changes may result in them dominating grant funding, overruling the mix of technology states had originally preferred.

Other changes being implemented include elimination of provisions ensuring affordable access for low-income Americans.