Former Pai Aide: USF ‘Top Issue’ Post-Election
Legal challenges put USF and FCC powers at risk.
Jericho Casper
WASHINGTON, Oct. 24, 2024 – With the 2024 election just days away, telecom insiders are bracing for changes that could reshape key elements of broadband policy.
One such change could affect the Universal Service Fund, a critical program that subsidizes broadband for rural areas, low-income households, healthcare centers, and schools and libraries.
Restructuring the $8.1 billion USF will be “the top issue” that either a Democratic or Republican White House would likely address “from different viewpoints,” according to Nathan Leamer, CEO of Fixed Gear Strategies and former aide to Federal Communications Commission Chair Ajit Pai.
Speaking at a Georgetown University Center for Business and Public Policy webcast on Wednesday, Leamer suggested that under a new Trump administration, the USF could be subject to significant changes.
He mentioned Republican FCC Commissioner Brendan Carr and Republican Vice Presidential nominee Sen. JD Vance, R-Oh., have floated the idea that Big Tech companies should be responsible for paying into the USF, rather than relying on traditional telecom contributions.
Leamer further highlighted major legal decisions, such as Loper Bright Enterprises v. Raimondo, would significantly impact the FCC’s ability to move forward on key regulatory issues.
Leamer explained that these reforms depend on the principle of Chevron deference, which grants regulatory agencies the authority to interpret ambiguous laws. However, this principle was significantly weakened when the Supreme Court overturned Chevron deference in the Loper Bright case in June of this year.
“The first thing I see is the fallout of the Loper decision,” Leamer said. “I think it's going to have major ramifications on what the FCC does or doesn't do going forward.”
Leamer noted that both Title II net neutrality regulations and the digital discrimination order were currently tied up in legal challenges, and legal experts from both sides of the political spectrum have suggested that these policies may be at risk.
“I think the reality for this FCC, especially if Kamala Harris wins, is, what do you do if the digital discrimination order gets struck down, or Title II gets struck down? Those are major, major items for this commission. How do they pick up the pieces from there? How do they restart the conversation?”
“This also applies” if former President Donald Trump wins the White House, Leamer said.
“There are a lot of items, particularly” anything the commission might want to do related to handling “Big Tech” or renewing NTIA’s petition for an FCC rulemaking on its Section 230 interpretation. “That you need Chevron deference to be able to move forward on. And so the question is what does that look like” in the wake of Loper Bright.
Leamer said that affordability measures, specifically the Affordable Connectivity Program and USF reform, will remain central issues, no matter who wins.
