ProPublica Investigation Prompts Debate on USF Reform
The report scrutinized the incentive structure of the Alaska Connect Fund subsidies.
WASHINGTON, May 28, 2026 – Questions over oversight of the federal Universal Service Fund resurfaced this week after ProPublica published an investigation into Alaska telecom subsidies and companies tied to rural broadband executive Roger Shoffstall.
Shoffstall is the CEO of the Summit Telephone Company, which provides telecommunications services. Summit Telephone is a participant in the FCC’s Alaska Plan, a federal Universal Service Fund support mechanism designed to sustain communications service in remote Alaska communities.
Summit’s fastest plan lists a download speed of 25 Mbps and an upload speed of 3 Mbps. The FCC’s broadband benchmark requires delivering a minimum of 100 Mbps download and 20 Mbps upload speeds.
The investigation arrives as federal policymakers continue debating how aggressively broadband federal support programs should be monitored, particularly as agencies distribute tens of billions of dollars through newer initiatives such as the Broadband Equity, Access, and Deployment program.
Summit is not the only case of subsidies to face scrutiny. Broadband policy experts have increasingly emphasized fiscal accountability and monitoring requirements for federally funded broadband programs, particularly as agencies attempt to avoid repeating problems associated with earlier initiatives.
“A telecom on the Aleutian island of Adak receives more than $350,000 a year to provide phone and low-speed internet services to 306 buildings, according to FCC records, even though the state Department of Labor says the island is home to fewer than 80 people,” the report stated.
The report cites GCI, the largest telecom in Alaska, receiving $466 million in subsidies two years after a settlement with the federal government for alleged fraud related to the same program.
Earlier this year, the FCC proposed reforms to the Alaska Connect Fund, the successor to the Alaska Plan, arguing that support mechanisms should better reflect modern broadband usage and increased competition from low-earth orbit satellite providers.
Rural carriers have long argued federal support remains necessary in Alaska, where many communities are inaccessible by road and telecommunications infrastructure costs can far exceed potential subscriber revenue.
