FCC Considers Satellite Changes to Universal Service's High Cost Fund

WASHINGTON, May 20, 2026 – The Federal Communications Commission on Wednesday launched an inquiry into the future of its high-cost universal service programs, signaling an expanded role for low-Earth orbit satellite services.

Adopted at the FCC’s May meeting, the proceeding raised questions about the future of the Universal Service Fund after SpaceX urged FCC Chairman Brendan Carr last week to phase out most of its $4.5 billion High‑Cost program, arguing that expanding satellite broadband services have erased much of the access gaps that subsidies were designed to fix. 

Asked if the FCC’s proposed rulemaking incorporated changes sought by SpaceX, Wireline Competition Bureau chief Joseph Calascione said the item does not predetermine outcomes or adopt specific proposals from the company, but instead kicks off a substantive debate.