Ajit Pai: Congress Should Fund the USF
Congress would have to act in order for tech companies to be assessed, said Pai
Ari Bertenthal
WASHINGTON, Nov. 21, 2024 – A former Federal Communications Commission chairman said Congress should fund the $8.1 billion Universal Service Fund through annual appropriations.
“I do think that the time has come for Congress to shift this to a general appropriation,” said Ajit Pai, FCC chairman from 2017 to 2021. “[If USF were funded by appropriation] we wouldn’t have this situation now where we’re essentially getting more and more money from a declining base of contributors.”
Pai, a Republican, stated his support for Congressional appropriations for the USF during a discussion with Ready Founder and CEO Jase Wilson.
Pai was speaking at the annual Broadband Leaders Summit (Nov. 21-21) in New Orleans, La. Wilson moderated the discussion.
USF is managed by the Universal Service Administrative Company and supports four major broadband programs designed to subsidize rural networks, low income households and internet discounts for schools and libraries.
Pai’s opinion is supported by Sen. Ted Cruz, R-Texas, who agreed that USF should be funded through congressional appropriations. Cruz is reportedly set to be the next Chairman of the Senate Commerce Committee, following his recent re-election victory in Texas.
Pai’s approach would clash with that of NTCA - The Rural Broadband Association, which has argued that broadband providers might not be able to properly invest capital in broadband expansion projects over fears that appropriated funds could be delayed or canceled due to political battles on Capitol Hill.
Currently, the USF is funded by an ever-growing stream of end user fees on voice providers. The sustainability of these fees has been called into question by industry leaders, who said the higher fees are harming consumers.
The USF contribution fee is adjusted every quarter, recently reaching an all time high of 35.8 percent.
In an attempt to modernize the USF program, Congress has established a USF working group. Rep. Bob Latta, R-Ohio, a member of the group, noted in September that the group has not yet come to an agreement on how to modernize the program.
Pai noted in the discussion that President-elect Donald Trump’s pick for FCC Chairman, Brendan Carr, would have a tough time following through with his ideas of bringing big tech into the USF contribution pool, “It would take an act of congress to make an assessment on technology companies,” Pai said.
