Luján Introduces Bill Requiring Automatic Refunds for Service Outages

WASHINGTON, May 15, 2026 – Broadband, cable, and telephone customers would receive automatic bill credits for prolonged service outages under legislation introduced Thursday.

The Outage Refund Guarantee Act, sponsored by Sen. Ben Ray Luján, D-N.M., would require cable, direct broadcast satellite, internet, and telephone providers to issue bill credits for any outage lasting more than four hours. 

“In today's world, reliable internet, cable, and phone service are no longer a convenience, but rather a necessity for everyday life,” said Luján, ranking member of the Senate Commerce Subcommittee on Telecommunications and Media, in a release.

“When an outage hits, it leaves thousands without the service they rely on for work, safety, and daily life,” he said.

Customers would receive a credit equal to one-thirtieth of their monthly bill for every four-hour outage period, applied automatically to their account. The bill follows several major outages that have sharpened scrutiny of network reliability and consumer protections.

An AT&T outage in February 2024 blocked more than 92 million calls, including more than 25,000 made to 911, and also disrupted FirstNet, the nationwide first responder network, according to the Federal Communications Commission. The agency referred the case to its Enforcement Bureau for potential outage rule violations.

More recently, Verizon attributed a major network outage in January to a software issue, after outage tracker Downdetector received more than 2.3 million user reports of the company's mobile network going down. The FCC said it was actively investigating.

Beyond refunds, the bill would direct the FCC to expand customer service requirements to broadband, satellite television, and voice providers, including accessibility standards for people with disabilities and require providers to retain customer service call recordings for at least one year. 

It would ban “skip waiting” fees and direct the Federal Trade Commission to set standards for missed service appointments and examine equipment return burdens for customers with disabilities or without access to transportation.

“In a time when junk fees are ubiquitous, the Outage Refund Guarantee Act turns the tide by requiring providers to automatically credit consumers who receive cable, phone, and internet outages,” said Susan Weinstock, CEO of the Consumer Federation of America, in a release. “The consumer should not be expected to beg for refunds on services they didn't get.”

“This bill eases the pain by ensuring that telecommunications providers issue refunds when they fail to deliver the services people rely on and pay for,” said Olivia Wein, senior attorney at the National Consumer Law Center.

The Outage Refund Guarantee Act is supported by Public Knowledge and the National Consumer Law Center.