Sen. Joni Ernst, R-Iowa, pressed Secretary of Transportation Elaine Chao to explain why President Donald Trump's infrastructure legislative proposal doesn't include “direct funding” for broadband projects via “existing programs” like the USF High Cost program and the Rural Utilities Service, during a Thursday Senate Environment and Public Works Committee hearing. Trump’s legislative package, released last month, proposes $50 billion in federal funding for rural infrastructure projects allocated via state block grants (see 1802120001). Democrats criticized the proposal for not including dedicated broadband funding (see 1802140052 and 1802140064).

The California Public Utilities Commission sought more time to comply with FCC elimination of a federal Lifeline low-income USF port freeze for voice and broadband services (see 1711160021). With the new rule to take effect March 19, the CPUC asked for an implementation extension until July 15 so it can determine what, if any, changes are needed to the state's LifeLine program, said a waiver petition posted Wednesday in docket 11-42. Also this week, a Telrite emergency petition sought a waiver extension of recertification and other rules for Lifeline subscribers in hurricane-ravaged Puerto Rico and the U.S. Virgin Islands until the Wireline Bureau determines it would be in the public interest to lift the waivers. The Alaska Telephone Association said FCC grant of relief to Lifeline providers in the state from several minimum service duties would give eligible low-income Alaskans living in remote areas "a choice between mobile wireless or fixed service at affordable rates." ATA's reply comments noted NTCA and WTA supported its petition and there was no opposition (see 1712060038). Hawaii's Department of Hawaiian Home Lands commended FCC efforts to address various policy initiatives raised in a recent NPRM, some of which faced much resistance in recent comments (see 1802210045 and 1802220061).

FCC staff gave some E-rate USF participants more time to file invoices beyond a previous extension ending Tuesday, due to Universal Service Administrative Co. processing delays. A "limited waiver" provides relief "to applicants and service providers that: (a) timely requested and received the one-time 120-day extension to invoice for funding year 2016 recurring charges from [USAC]; and (b) are currently awaiting, or recently received, a revised funding commitment decision letter (RFCDL) issued for a post-commitment change request submitted to USAC," said the Wireline Bureau order in docket 02-6 listed in Tuesday's Daily Digest. Affected E-rate participants now have "120 days from the date of their post-commitment RFCDL" to file invoices, said the bureau, citing "extraordinary circumstances created by technological system issues that delayed USAC’s issuance of post-commitment RFCDLs" for FY 2016. The parties "may not receive their RFCDLs in time to submit accurate invoices" by Tuesday, it said.

Revamp, don’t repeal Alaska USF, urged the telecom industry and Alaska’s attorney general in comments this week in docket R-18-001 at the Regulatory Commission of Alaska. The RCA last month proposed phasing out AUSF by July 31, 2019 (see 1801160014). The Alaska Telephone Association (ATA), Alaska Communications (AC) and the AG office rejected that and pitched alternatives. AUSF surcharges -- 19 percent this year -- “will almost certainly continue to rise,” a lawmaker said. The federal USF contribution factor for Q1 is 19.5 percent.

Idaho Public Utilities Commission staff must file a report by April 4 on the future of state USF, the PUC said in a Friday order in case GNR-T-17-05. Comments on the staff report will be due April 25, it said. The PUC canceled a previously scheduled Feb. 28 USF workshop because staff said it was satisfied after a Jan. 17 workshop (see 1801170030).

Rural telcos objected to the possible retroactive impact of some expense limitations apparently being considered by the FCC, or any sweeping disruption of settled cost-recovery principles. "[W]hile an October 2015 Public Notice purported to 'remind' carriers that certain expense items were ineligible for recovery via USF in 2015, then-existing rules that are still in effect today only prohibited recovery of some of the listed items," said an NTCA/WTA filing posted in docket 10-90 Thursday on a meeting with Wireline Bureau officials. "In fact, the rules in effect then and still today expressly permit recovery of several other expense categories listed in the Public Notice (or are ambiguous or internally inconsistent at best)." New limitations should be applied only prospectively, the groups said, noting they back "delineating explicit limitations with respect to the recoverability of specific expense categories" consistent with their prior filings and commissioner statements (see 1801310057). The groups also "objected to any far-ranging, open-ended language in either a new rule or order text that would attempt to recast, restate, or recharacterize decades of settled cost recovery standards and jurisprudence," they said. "[T]he focus should be on promoting clear accountability by providing very direct and plain indication of what expenses are not recoverable through USF and/or rates, rather than rewriting cost recovery policies more broadly in a way that could create, rather than dispel, confusion for small businesses and increase, rather than decrease, complicated compliance risks and burdens."

A federal-state joint board on separations probably won't agree on recommendations for overhauling the system of allocating incumbent telco costs between the federal and state jurisdictions, said FCC Commissioner Michael O'Rielly, the board chairman. He proposed a 15-year extension of a current freeze on jurisdictional separations and other targeted steps to help resolve long-term issues. State members of the panel Friday said discussions should continue.

FCC staff partially granted an Allband Communications Cooperative petition to waive a rule establishing a presumptive per-loop cap of $250 per month on total high-cost USF support. It will let the rate-of-return incumbent LEC "continue to provide voice and broadband services in parts of rural Michigan, which otherwise would go unserved," said a Wireline Bureau order Thursday in docket 10-90.

President Donald Trump urged Congress to improve broadband infrastructure, citing concerns about a lack of connectivity in 25 percent of U.S. schools and 39 percent of citizens in rural areas. “It is intolerable to continue pretending that this is the best America can offer to our students,” Trump said Wednesday in a letter accompanying the Council of Economic Advisers’ annual report. The CEA report cites investments in broadband and emerging technologies as giving workers access “job opportunities without geographic relocation,” potentially making “geographic immobility less relevant for labor force participation.” Even citizens in rural areas who do have broadband access “face a more limited choice set of service providers than their urban counterparts, and tend to adopt at lower rates,” the council said. “Access to broadband is key for modern private enterprise, and a lack of available infrastructure prevents investment in rural communities.” The CEA cited a USF revamp, loans, grants, tax incentives and changes to regulatory rules as potential tools for encouraging infrastructure deployments. The administration released last week its infrastructure legislative proposal, including a focus on streamlining the federal environmental permitting process, including for small-cells deployments. It included proposals for state block grants and federal matching funds that broadband projects could qualify for, but no dedicated broadband funding (see 1802120001).

More parties opposed an FCC plan to exclude resellers from Lifeline USF participation and voiced a mix of concerns and some support for other proposals, as dozens of additional comments posted in docket 17-287 Wednesday and Thursday. Major industry players joined consumer advocates, state regulators and others in objecting to an FCC proposal to shift Lifeline low-income support to facilities-based service. CTIA, ITTA, Mobile Future, Sprint, USTelecom and Verizon voiced resistance to the proposed exclusion of resellers. The commission should "reject proposals to condition receipt of federal Lifeline support on network build-out," said Sprint: "The modest per-subscriber subsidy, whose receipt is not guaranteed, makes the Lifeline program ill-suited as a direct mechanism to spur capital-intensive broadband deployment." USTelecom "strongly supports policies that encourage investment in broadband-capable networks," saying "the Commission should not utilize the Lifeline program to achieve a goal for which it is not designed. Instead, the Commission should focus its efforts on ensuring the successful implementation of the National Verifier, which will cure the clear majority of the issues raised in the Notice." Among others objecting to the facilities-based proposal were: NARUC; some state regulatory commissions; National Grange; NATOA and National League of Cities (here); National Urban League and others (here); New York City; Boston, Los Angeles and other cities (here); the Multicultural Media, Telecom and Internet Council and others (here); Rainbow Push Coalition's Jesse Jackson Sr. and former Rep. Dennis Kucinich, D-Ohio. ATN International backed the FCC proposal to dedicate support to facilities-based carriers, as did District of Columbia Public Service Commission Chairman Betty Ann Kane, with a caveat. Various parties opposed capping the Lifeline budget and argued for continuing to support voice-only services. There were mixed views on whether a federal Lifeline broadband provider designation should be eliminated.