Telecom Industry Launches Coalition to Push Congress on USF Fix
The groups called on Congress to preserve USF’s funding structure ahead of Supreme Court ruling.
Jericho Casper
WASHINGTON, March 4, 2025 – With millions of Americans at risk of losing access to affordable phone and internet service, a coalition of major telecom industry groups has launched a new effort to pressure Congress to act on the Universal Service Fund before it collapses.
The Keep America Connected Coalition, which includes NCTA – The Internet & Television Association, the Competitive Carriers Association, and GCI Communications Corp, has called on lawmakers to pass a legislative fix to preserve the USF’s funding structure ahead of a Supreme Court ruling expected this summer.
For nearly 30 years, the Universal Service Fund has helped bridge connectivity gaps where the market alone has failed. Established by the Federal Communications Commission in 1997, the fund helps deliver broadband and phone services at just, reasonable, and affordable rates to rural communities, low-income households, schools, libraries, and healthcare providers.
However, a July 2024 decision by the Fifth Circuit Court of Appeals found aspects of the USF’s funding mechanism unconstitutional, breaking with longstanding legal precedent and conflicting with rulings from two other federal appeals courts in the past 16 months. If the Supreme Court upholds the Fifth Circuit’s ruling, the USF could shut down within weeks, potentially disconnecting millions of Americans.
The Keep America Connected Coalition argues that while long-term reforms to the USF may be necessary, Congress must first pass a narrow stop-gap measure to prevent an immediate funding crisis.
According to the coalition’s website, failing to preserve the USF could result in catastrophic consequences for millions of Americans. They predict if Congress fails to act, 132,725 schools and libraries could lose broadband funding, cutting off internet access for 54.3 million students.
Additionally, 7.6 million low-income consumers may no longer be able to afford phone or internet services, while 16,080 healthcare providers could be disconnected, disrupting critical telemedicine services for rural and underserved communities.
“USF plays a critical role in ensuring that rural, remote, and underserved communities across the United States have access to telehealth, education, and basic communication services,” said Michael Powell, president and CEO of NCTA, urging policymakers to come together.
CCA CEO Tim Donovan warned that small and regional providers depend on USF to keep rural broadband projects running, including networks used for 911 and emergency services. “If this funding disappears, so will critical projects to preserve and expand connectivity across the country,” Donovan said.
Former FCC Commissioner Mike O’Rielly, now advising the coalition, said an abrupt cutoff of USF would “cause chaos”, halting broadband expansion projects and disrupting service for millions, including students, rural hospitals, and emergency responders.
The Supreme Court has announced it will hear arguments on March 26, with a ruling likely by mid-2025. If the Fifth Circuit ruling stands and Congress does nothing, the USF could be dismantled by summer — with no alternative funding mechanism in place.
The Keep America Connected Coalition continues to push lawmakers to act now, warning that waiting for a post-ruling scramble would leave millions of Americans without essential communications services.
