FCC Chairman Brendan Carr said the agency could look at driving “inefficiencies” out of the USF program and NTIA Administrator Arielle Roth clarified the agency’s focus for the BEAD program in separate Q&As onstage Tuesday at NTCA’s Telecom Executive Policy Summit. NTIA rules restricting the broadband funding that BEAD participants can receive are aimed at preventing bids that rely on “speculative, hypothetical funding” to complete their obligations and at avoiding defaults, Roth said. NTIA said Tuesday that it approved 18 state BEAD proposals (see 2511180007).

Consumers’ Research and its allies urged the FCC to zero out the proposed USF contribution factor for Q1 (see 2511100035), despite the U.S. Supreme Court decision last summer that the factor is constitutional (see 2506270054). “Several important arguments remain for why the USF, either in whole or in part, is unlawful, including in its application by the Commission,” said a filing Thursday in docket 96-45. The group makes a similar filing each quarter.

Consumers’ Research and other parties challenging the legality of the USF contribution factor at the 5th U.S. Circuit Court of Appeals urged the court not to allow various public interest groups to intervene. Motions to intervene were filed last month by the Schools, Health & Libraries Broadband Coalition and jointly by the Benton Institute for Broadband & Society, the National Digital Inclusion Alliance and the Center for Media Justice (see 2510300042). The 5th Circuit stayed the case Tuesday because of the federal shutdown (see 2511040071).

Top Senate Commerce Committee leaders told us they aren’t yet completely ruling out proposals to make the USF subject to Congress’ annual appropriations process as part of a legislative revamp of the program. However, some panel Democrats are dubious because of flaws in the funding system, amplified by the ongoing government shutdown (see 2510230049). In comments submitted to Congress' bipartisan USF working group, some stakeholders also strongly advocated for shifting to an appropriations-based funding model (see 2509160064). Meanwhile, panelists at a Schools, Health & Libraries Broadband Coalition event Wednesday said they see appropriations as a largely unappealing option to give USF more sustainable long-term funding.

Experts warned Wednesday that there are no easy answers to shoring up the USF and making predictable funding available for years to come. During a Broadband Breakfast webinar, panelists noted that some federal funding is disappearing, with FCC commissioners voting 2-1 last month to delete support for school bus Wi-Fi and internet hot spots that aren't on school or library premises (see 2509300051).

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).

NTCA CEO Shirley Bloomfield warned that changes in the BEAD program could mean that many of the group’s members will sit it out though a good number are well positioned to participate. Departing next year after 25 years at NTCA's helm (see 2509170060), Bloomfield spoke with former FCC Commissioner Mike O’Rielly during a Free State Foundation webcast. “This is a tougher business than people think it is,” she said.

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.”

A handful of right-leaning groups are pressing strongly for a bipartisan congressional working group to recommend funding USF via the appropriations process as part of a potential legislative revamp of the program, but other stakeholders said they still they favor various expansions of the initiative’s contributions base. Comments to the working group were due late Monday night as part of its recently relaunched bill consultations (see 2508010051). The right-leaning groups also called for the most far-reaching changes to the program’s governance and structure, in some cases seeking to ax the high-cost fund.

West Kentucky and Tennessee (WK&T) Telecommunications Cooperative CEO Karen Jackson-Furman and other witnesses plan to highlight for the House Small Business Committee their hopes for a restarted congressional working group’s bid for a USF legislative revamp (see 2507030051), according to written testimony released ahead of Wednesday's hearing on broadband deployment’s effect on rural entrepreneurs. Some urge lawmakers to continue addressing internet affordability as part of the USF revamp. Several of the witnesses also back Republicans’ bid to further ease permitting reviews of connectivity projects, including via the controversial American Broadband Deployment Act (see 2305240069). The House Small Business hearing will begin at 10 a.m. in 2360 Rayburn.