The objective of Consumers' Research was getting a case about the Universal Service Fund contribution methodology before the U.S. Supreme Court. That case resulted in the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the contribution factor is a "misbegotten tax," legal experts said during a Schools, Health & Libraries Broadband Coalition webinar Wednesday. The 5th Circuit remanded the contribution factor for Q1 2022 to the FCC for further work.

The Senate Appropriations Committee's report on its Financial Services Subcommittee FY 2025 funding bill “urges” that the FCC move forward on revamping the Universal Service Fund. The Senate Appropriations Financial Services bill, which the panel approved Thursday, would increase annual funding for the FCC and FTC for FY25 (see 2408010059). Senate Appropriations said in the report, released Thursday night, that it wants the FCC to “seek public comment this fiscal year on any reform proposals that have been submitted to the commission or otherwise previously considered that would promote the sustainability and viability of [USF] and resolve inequities in the current contribution structure.” The FCC should “act as soon as possible following review of that record to adopt reforms to achieve” revamp objectives, Senate Appropriations said: The commission “should also provide specific recommendations to Congress regarding additional authority it believes it may need to enact any reforms that are found to be prudent, advisable, or necessary.” Members of a congressional working group are grappling with whether the 5th U.S. Circuit Court of Appeals’ July ruling that the FCC's USF contribution factor is unconstitutional will affect their work on a revamp framework (see 2407300053).

Members of the congressional Universal Service Fund revamp working group are considering whether, and how much, the 5th U.S. Circuit Court of Appeals' ruling will affect their rollout of a framework for overhauling the program. The court ruled last week that the FCC's USF contribution factor is unconstitutional (see 2407240043). Experts believe lawmakers will likely factor the ruling into the framework, but it could be moot should the U.S. Supreme Court reverse the decision on appeal (see 2407260044). Uncertainty about USF’s future will likely extend the working group’s already lengthy process, lobbyists told us.

The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.

Kentucky Gov. Andy Beshear and North Carolina Gov. Roy Cooper possess the best telecom policy credentials among the main contenders to be the Democrats’ vice presidential nominee, broadband advocates and other policy observers told us. All the contenders hold broadly similar views to Vice President Kamala Harris on broadband and telecom policy matters, but could bring different perspectives to the ticket, experts said in interviews last week.

The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."

The Affordable Broadband Campaign and WTA asked the FCC to reconsider its decision granting ISPs forbearance from Communications Act Section 254(d), which governs USF contributions. The contribution mechanism isn't "stable or equitable" and the declining revenue base is "hindering the ability of the commission to ensure that universal service is properly evolving," the groups said in a petition filed Monday in docket 23-320. The FCC granted ISPs forbearance in its May order restoring its net neutrality framework and reclassification of broadband as a Title II telecom service (see 2404190043).

Supporters of the FCC's expired affordable connectivity program acknowledge the Senate Commerce Committee’s impasse (see 2406180067) on the Spectrum and National Security Act (S-4207) may spur a reexamination of alternatives for addressing broadband pricing. This realization comes amid weakening odds that Congress can address ACP funding via a broader package aimed at restoring the FCC's lapsed airwaves sales authority. Lawmakers continue insisting a legislative solution is possible this year even though Senate Commerce’s cancellation of its planned Tuesday markup of S-4207 (see 2406170066) was its fourth pulling of the measure since early May. Other stakeholders are urging a shift to emphasizing nonlegislative solutions.

FCC Commissioner Anna Gomez told us during an exclusive Communications Daily Q&A that evaluating assessments made on consumers' bills as part of funding the Universal Service Fund is her top issue amid calls for contribution reform (see 2404190043). Sworn in in September, Gomez also mentioned concerns about USF's future and the affordable connectivity program. She also urged ISPs to create their digital equity plans with "intentionality."

A coalition of industry groups on Friday challenged the FCC's net neutrality order and declaratory ruling reclassifying broadband as a Communications Act Title II telecom service (see 2405310074). The coalition asked the FCC to stay the effective date of its order and declaratory ruling pending judicial review. Coalition members included USTelecom, NCTA, CTIA, ACA Connects and several state broadband associations.