OTI Condemns Proposal To Ration the Universal Service Fund

The Federal Communications Commission (FCC) has reportedly circulated a proposal to cap the budget of the Universal Service Fund (USF). A budget limit on the USF, which includes the Lifeline and E-Rate programs, would greatly undermine the FCC’s ability to bridge the digital divide. OTI recently hosted an event where panelists discussed the importance of the Lifeline program.

The following quote can be attributed to Amir Nasr, Policy Analyst at New America’s Open Technology Institute:

"This proposal is extremely worrisome. The Universal Service Fund is one of the Commission's most useful tools in bridging the digital divide. The Lifeline and E-Rate programs in particular have been vital in extending broadband access to millions of American consumers, schools, and libraries. The FCC should be working to strengthen these programs, rather than restricting them and pitting them against one another for funding.

"The very idea of capping USF budgets is misguided and unnecessary. Three out of four of the programs (Connect America Fund, Rural Health Care Program, and E-Rate) each already have caps in place, and recent reforms to Lifeline included a budget mechanism for the program. For Lifeline, expenditures have trended down, while the program continues to be underutilized relative to the the number of eligible users. Between 2012 and 2016, Lifeline expenditures decreased from $2.1 billion to $1.5 billion, and have since hovered at around $1.5 billion. And only 28 percent of eligible households actually participated in Lifeline in 2017. A budget cap on Lifeline would make it impossible for the Commission to reach the millions of unconnected Americans who are eligible for the program but have not enrolled.”