Affordable Connectivity Program Extension Act (HR-6929/S-3565) lead House sponsor Rep. Yvette Clarke, D-N.Y., told us she's cautiously optimistic ahead of the opening of a discharge petition Thursday to force a floor vote on the measure (H.Res. 1119). HR-6929/S-3565 proposes allocating $7 billion for FY 2024 to the ailing FCC connectivity program. Thursday marks the end of a seven-legislative-day waiting period before Clarke can begin collecting signatures on the petition, which would require backing from at least 218 members before becoming effective (see 2404100075). Republican observers, even those who support giving ACP stopgap money, are skeptical the discharge petition bid will succeed.

Consumers' Research asked the 5th U.S. Circuit Court of Appeals to reverse the FCC's USF contribution factor for Q2 of FY 2024 (see 2401100044). In a filing posted Wednesday (docket 24-60160), the group repeated its claim that USF contributions are illegal taxes that the Universal Service Administrative Co. collects and "should be rejected."

Consumers' Research asked the 5th U.S. Circuit Court of Appeals to reverse the FCC's USF contribution factor for Q2 of FY 2024 (see 2401100044). In a filing posted Wednesday (docket 24-60160), the group repeated its claim that USF contributions are illegal taxes that the Universal Service Administrative Co. collects and "should be rejected."

The major questions doctrine "is not applicable" to reclassifying broadband as a Communications Act Title II service, Public Knowledge told FCC Wireline Bureau, Public Safety and Homeland Security Bureau, and Office of General Counsel staff. The group said in an ex parte filing posted Tuesday in docket 23-320 that the commission "would need to claim a new power or reverse a long-standing interpretation of a statute" for the doctrine to be considered. The FCC "does not need evidence of new harms to justify its reversal" to "the status quo ante," the group said, adding the commission "only needs to assert that the 2018 reversal does not comport with the FCC’s mandate to ensure universal service and promote public safety." Public Knowledge also asked the FCC not to forbear providers from Section 254(d) rules governing USF contributions, noting any contribution requirements would require the commission to first establish a specific mechanism (see 2403080055).

The Affordable Broadband Campaign urged the FCC not to immediately grant broadband providers forbearance from Communications Act Section 254(d) requirements in its net neutrality proceeding. The group's chair, Vernonburg Group Chief Policy Officer Greg Guice, said granting forbearance of Section 254(d), which governs USF contributions, is "unnecessary and not supported by the record," per an ex parte filing posted Friday in docket 23-320 (see 2310190020). The group urged the FCC to start a proceeding "focused on whether and how the contribution obligation would be undertaken." The group met with Wireline Bureau staff.

Senate Commerce Committee ranking member Ted Cruz, R-Texas, called Wednesday for Congress to substantially rein in the FCC's autonomy in setting USF spending and creating new programs amid a bicameral working group’s examination of a possible universal service revamp (see 2305110066). “Caught in a dilemma of wanting to further expand USF programs but having already maxed out the level of taxation American consumers can reasonably tolerate, the conversation at the FCC and in Congress has focused on expanding the pool of companies and products subject to” the USF contribution factor, which is effectively a “tax on the working class,” Cruz said in a paper. “This approach is anything but fair to American taxpayers: it would hide the problem of excessive USF taxation rather than fix it and ultimately make tax burdens worse by emboldening further unaccountable spending growth.” Instead, he said Congress should “take charge of defining universal service and deciding where USF funds may go.” Cruz proposes making most USF programs subject to congressional appropriations but believes “it may make sense to keep the High-Cost program within the current” funding framework “given ongoing multiyear commitments to providers.” Congress should eliminate “duplicative” USF spending, including combining the Lifeline program with the currently independent affordable connectivity program, given perceptions that the “federal government has too many broadband programs, and a poor record of coordinating them,” Cruz said. He also proposes curbing the FCC’s expansion of E-rate eligibility, citing concerns about permitting schools and libraries to use program support for off-premises Wi-Fi hot spots and wireless internet services (see 2311090028).

A coalition of 21 Republican state attorneys general urged the U.S. Supreme Court to hear Consumers' Research's challenge of the FCC's quarterly USF contribution factor and methodology in an amicus brief posted Thursday (docket 23-743). "Agencies are finding all kinds of creative new ways to grab money and power for themselves lately," the coalition, led by West Virginia AG Patrick Morrisey (R), said. The FCC "extracts billions from American consumers based on a vague statute" and "doesn’t even do the work of setting these rates itself," they argued (see 2401100044). The AGs called the FCC's use of the Universal Service Administrative Co. unconstitutional and a violation of the nondelegation doctrine. "Those that would warn the Court away from reaching these issues are wrong," the group said: "The benefits of the present state of play are overstated." The FCC declined to comment Monday. The agency on Monday petitioned the court to extend until April 3 the March 4 deadline for responding to Consumers' Research's petition, citing a parallel case pending in the U.S. Court of Appeals for the 5th Circuit.

A coalition of 21 Republican state attorneys general urged the U.S. Supreme Court to hear Consumers' Research's challenge of the FCC's quarterly USF contribution factor and methodology in an amicus brief posted Thursday (docket 23-743). "Agencies are finding all kinds of creative new ways to grab money and power for themselves lately," the coalition, led by West Virginia AG Patrick Morrisey (R), said. The FCC "extracts billions from American consumers based on a vague statute" and "doesn’t even do the work of setting these rates itself," they argued (see 2401100044). The AGs called the FCC's use of the Universal Service Administrative Co. unconstitutional and a violation of the nondelegation doctrine. "Those that would warn the Court away from reaching these issues are wrong," the group said: "The benefits of the present state of play are overstated." The FCC declined to comment Monday. The agency on Monday petitioned the court to extend until April 3 the March 4 deadline for responding to Consumers' Research's petition, citing a parallel case pending in the U.S. Court of Appeals for the 5th Circuit.

Pennsylvania’s biggest incumbent, Verizon, launched an all-out attack on state USF in comments Friday, urging that the Pennsylvania Public Utility Commission eliminate the fund. The carrier said the USF is archaic. In addition, AT&T joined Verizon in urging the PUC to reduce regulations, such as carrier of last resort (COLR) obligations. However, rural LECs argued that they will continue needing state USF support for as long as Pennsylvania heavily regulates them.

The telecom industry pushed back on a Vermont state bill that could shake up state USF contribution and telecom taxation. At a House Ways and Means Committee hearing streamed Wednesday, a wireless industry lobbyist said a proposed shift to connections-based USF contribution mechanism unfairly shifted costs to wireless customers. A New England Connectivity and Telecommunications Association (NECTA) lobbyist, representing the region’s cable industry, condemned a possible $15 annual tax on each pole attachment owned by private communications providers. Community media representatives supported the proposed tax for supporting public, educational and governmental (PEG) channels.