Consumers’ Research and its allies renewed their attack on the legality of the USF contribution factor, filing a petition with the 5th U.S. Circuit Court of Appeals last week challenging it for Q4. Last month, the group withdrew an earlier challenge at the 5th Circuit, but industry observers predicted at the time that it would file a new one (see 2509170072). In August, Consumers’ Research asked the FCC to zero out the factor for Q4 (see 2506130016).
Consumers’ Research and other challengers of the USF contribution factor in the 5th U.S. Circuit Court of Appeals agreed to end their current challenge there. The government and challengers said in a filing with the court that they “hereby stipulate to the dismissal of the petitions in the above proceedings, with each side to bear its own costs and fees.”
Consumers’ Research and its allies made additional arguments at the FCC for why the agency should zero out the USF contribution factor for Q4 (see 2508110021), despite the U.S. Supreme Court decision that the factor is constitutional (see 2506270054).
As policymakers look at reforms to the USF, they need to examine why so many people who are eligible for support don’t enroll in Lifeline and other programs, experts said Monday during an event hosted by Georgetown University's Center for Business and Public Policy. The session coincided with Monday's deadline for responding to the congressional USF working group's request for comments and proposals on USF reform.
The FCC’s top telecom priorities include the components of Chairman Brendan Carr’s “Build America Agenda,” stabilizing USF and deregulation, agency Chief of Staff Scott Delacourt said. NTIA Principal Deputy Assistant Secretary Adam Cassady said finishing BEAD "is job one," but other tasks include space policy revisions and identifying spectrum for commercialization. The two spoke Monday at Technology Policy Institute’s annual Aspen Forum.
Consumers’ Research and its allies objected Friday to the proposed USF contribution factor for Q4, citing unanswered questions from the group’s unsuccessful challenge in the U.S. Supreme Court in late June. The factor is projected to increase from 36% in Q3 to 39.3% in Q4, based on the latest projections from the Universal Service Administrative Co. (see 2508040049).
The recently relaunched bipartisan congressional working group studying a USF legislative revamp is seeking a new round of stakeholder comments about how to proceed and has opened a portal for submissions, Senate Communications Subcommittee Chair Deb Fischer, R-Neb., said Friday. Meanwhile, the Digital Progress Institute said in a white paper Thursday that USF's current contribution mechanism is “unsustainable” and “horrendously inefficient.”
A mobile billboard truck condemning Dish Network as being “woke” was parked near FCC headquarters Thursday morning in the hours before the agency’s open meeting. Conservative group Consumers’ Research was labeled as the billboard’s sponsor. “Woke Alert. Dish Network is Pushing a Woke Agenda while Asking Conservatives for Favors,” the sign read, directing readers to WokeDishNetwork.com. The URL goes to a page on Consumers’ Research’s website, where it condemns Dish for the company’s diversity policies and CEO Charlie Ergen’s donations to Democratic Party campaigns. The FCC is currently investigating Dish’s parent company EchoStar over its use of spectrum and failure to fulfill buildout promises to the agency. In June, President Donald Trump reportedly interceded with FCC Chairman Brendan Carr on Ergen’s behalf (see 2506160039). Asked about the investigation Thursday, Carr said he “is still open-minded on a path forward” but the status quo is “unacceptable.” Dish is “sitting on” a “tremendous amount of spectrum” that isn’t being effectively utilized, Carr said. Consumers’ Research is known for litigating for conservative causes and has repeatedly challenged the legality of the FCC’s USF fund. The organization doesn’t disclose its donors, but DonorsTrust in 2022 named Consumers’ Research as among recipients of its grants totaling $242 million. DonorsTrust is a donor-advised funding provider that supports conservative groups. “We share your commitment to protecting our nation’s constitutional liberties and strengthening civil society through private institutions rather than with government programs,” said its website.
Consumers’ Research said the 5th U.S. Circuit Court of Appeals should look more closely at an issue raised in the dissent and a footnote in the majority opinion of the Supreme Court’s decision in June upholding the legality of the USF. The FCC and DOJ last week asked the 5th Circuit not to require further briefing but close the case (see 2507170063).
The FCC and DOJ on Thursday asked the 5th U.S. Circuit Court of Appeals not to require a briefing on a potential remaining issue after the U.S. Supreme Court last month rejected a Consumers’ Research challenge to the way the FCC manages the USF (see 2507020049). The problem for the FCC has been a footnote in the majority opinion, which noted that several provisions in Section 254 of the Communications Act weren't challenged and which expressed no opinion about whether those posed any additional problems for the program (see 2507150081).