What Is the Universal Service Fund?

Access to reliable internet is essential for work, education, healthcare, commerce, and staying connected. However, providing broadband service — especially in rural and underserved areas — requires significant investments to make serve available and keep prices low. That’s where the Universal Service Fund (USF) comes in. Established under the Telecommunications Act of 1996, the USF helps make telecommunication services more affordable and accessible by supporting programs that benefit schools, libraries, rural healthcare providers, low-income households and internet service providers in rural areas.

These programs include:

• E-Rate – Helps schools and libraries afford internet service.
• Rural Health Care Program – Supports broadband access and connectivity for rural healthcare facilities.
• Lifeline – Assists low-income households with monthly phone and internet costs.
• High-Cost Program – Ensures affordable voice and broadband services are available in areas that would otherwise be unserved or underserved due to the high-cost to provide services.

Why Is the Universal Service Fund at Risk?

A Circuit Court ruling in July of 2024 questioned how the USF is funded and operated, putting its future and programs in jeopardy. The U.S. Supreme Court will soon decide whether the USF can continue operating as it has for decades.

At the same time, the way the USF collects funding has become outdated. It relies on fees from traditional phone service providers, but with fewer people using landlines, the cost burden has grown unsustainable. Changes need to be made.

How Will This Affect Broadband Services in Rural Communities?

The potential loss of USF funding could have direct consequences for broadband subscribers, particularly those in rural communities:

• Challenges for Connectivity – Without USF support, rural broadband providers would be forced to cover a greater portion of costs for constructing and maintaining infrastructure in rural areas. Low-income households that benefited from the Lifeline program may struggle to afford internet service.
• Limited Access – Schools, libraries, and rural healthcare facilities could lose crucial funding, making it harder for students, teachers, and patients to stay connected.
• Community Impact – Broadband expansion in underserved areas would likely slow down or stop altogether, preventing businesses and households from gaining access to high-speed internet.

Conclusion

The Universal Service Fund has played a vital role in expanding telecommunications for decades, ensuring that communities across the country stay connected. As the conversation about its future continues, FOCUS Broadband remains committed to keeping our customers informed and advocating for #BroadbandBuiltToLast.

How the USF Benefits North Carolina