Support the Universal Service Fund

ACTION NEEDED

Urge your Members of Congress to support reform to the Universal Service Fund (USF) that ensures essential USF program can continue to work towards achieving universal service in the 21st century. Congress and the Federal Communications Commission (FCC) are respectively investigating changes to the USF that may expand the contribution base, amend or remove existing programs and revise the governance structure of the USF. Counties support USF reform that can ensure existing programs deliver federal funding to evolving needs at the local level, including supporting high-speed broadband deployment, meeting emerging technology needs at the local education level, supporting affordability to telecommunications services and fostering expanded capacity in the telehealth sector to support rural hospitals.

BACKGROUND

The USF plays a crucial role in providing universal service to communications services and expanding broadband infrastructure, connecting low-income households with affordable internet, providing subsidized internet service to facilities like libraries and schools and supporting connectivity for rural health care services. The USF relies on a base of traditional cable and telephone provider revenues that is dwindling due to the continued rise of internet use and increased us of streaming services over traditional providers' services. Broadband providers are not currently required to contribute to the USF.

The USF has operated in its current form for nearly 30 years under the Telecommunications Act of 1996, which established the goal of increasing access for all consumers at just, reasonable and affordable rates. Current USF programs include the following, all of which provide direct or indirect benefits to counties and county residents: 

• The Lifeline Program helps make communications services including telephone, broadband internet or bundled voice-broadband package services more affordable for low-income consumers. The program was originally established in 1985 for telephone services and has expanded to cover mobile and broadband as technology has modernized. The program, although active, is considered a predecessor to the Affordable Connectivity Program, the authorization of which is a key advocacy goal for NACo.
• The High-Cost Program supports more than a dozen legacy funds that are designed to ensure that consumers in rural, insular and high-cost areas have access to modern communications networks capable of providing voice and broadband services, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. Recent programs include the 5G Fund for Rural America, the Rural Digital Opportunity Fund, the Connect America Fund and others.
• The Schools and Libraries (E-Rate) Program makes telecommunications and information services more affordable for schools and libraries, providing discounts for telecommunications, internet access and internal connections to eligible schools and libraries. Annual funding for this program is capped at $4.15 billion.
• The Rural Health Care Program provides funding to eligible health care providers for telecommunications and broadband services necessary to deliver health care. Eligible providers include local health departments or agencies, community mental health centers, rural health clinics and other entities. 

Counties support modernization efforts to the USF that work to preserve the goals of universal service for our residents.  

KEY TALKING POINTS

• Counties support the reauthorization and reconfiguration of the USF as a critical support mechanism for broadband services to reach rural, high-cost and low-income residents through a variety of vital programs
• The Universal Service Fund provides vital connectivity support to rural counties by subsidizing internet for schools and libraries, expanding broadband infrastructure and increasing internet affordability for rural customers.