Telecommunications overall continues to receive a good deal of attention in Washington D.C.. The following is a summary of two recent legislative actions taken by the U.S. Congress:
* Wi-Fi Hotspots
In the 9/9/24 edition of the ICORE Blog we reported on the FCC’s July, 2024 adoption of a Report and Order (Order) that updated the FCC’s E-Rate rules to provide support for schools and libraries to purchase Wi-Fi hotspots and wireless services to be loaned out to and used by students, school staff, and library patrons off premises. The Order found that the off-premises use of Wi-Fi hotspots and associated wireless service serve an educational purpose and will enhance access to enhanced services for schools and libraries. The FCC Order was titled “Addressing the Homework Gap Through the E-Rate Program” and the program was scheduled to begin in funding year 2025 which starts in July 2025.
On May 6, 2025, The U.S. Senate approved a Motion to proceed to a final Senate vote on a Resolution of Disapproval under the Congressional Review Act that would nullify the FCC’s Order and on May 8, 2025 the Senate approved the Resolution of Disapproval. The Resolution now moves to the U.S. House of representatives for its consideration. If approved in the House the Resolution will move to President Trump for his signature.
The FCC previously distributed Wi-Fi hotspots funding through the Emergency Connectivity Fund (ECF) that was authorized by Congress in 2021 but ended in 2024. At that point the FCC acted to continue the program through the July, 2024 Order. FCC Chairman Carr, then Commissioner Carr, voted against adoption of the Order at that time stating that only Congress could decide to continue the Wi-Fi hotspot program. Chairman Carr and Commissioner Simington issued statements in support of the Senate’s Resolution of Disapproval. FCC Commissioner Gomez was highly critical of the Senate’s actions citing the negative effects on students and senior citizens should the Wi-Fi hotspot program be eliminated.
* USF Contributions
A Bill was recently introduced in the U.S. Senate addressing the mechanism for contributions to the Universal service Fund (USF). The Bill is titled the “Lowering Broadband Costs for Consumers Act of 2025 (Similar legislation was introduced in the Senate in 2023, see ICORE Blog dated 11/22/23). The Bill would require the FCC to complete a rulemaking no later than 18 months after the enactment of the Bill to reform the USF by expanding the contribution base to include broadband providers and edge providers. A broadband provider is defined as a provider of internet access service. An edge provider is defined as a provider of online content or services, including for example a search engine, streaming service, or an e-commerce platform. The legislation contains language that limits the FCC’s authority over edge providers and broadband providers to the requirement to contribute to the USF.
The Bill provides for exemptions from the contribution requirement in certain cases. The requirement to contribute to the USF shall not apply to an edge provider that transmitted less than 3% of the estimated volume of broadband data that was transmitted in the United States during the most recent year as determined by the Commission and earned less than $5B in revenue in the United States during the most recent year. Further, the Bill exempts an edge provider or broadband provider if the level of revenue of the provider is such that the level of contribution to the USF would be de minimis.
The FCC has considered the issue of expanding the USF contributions base in the past, specifically to include edge providers and possibly other entities. In its 2022 Report on the Future of the USF (Report) the FCC discussed expanding the contributions base but ultimately concluded that there was significant ambiguity in the record regarding its authority to do so. The Report recommended that Congress provide the FCC with the legislative authority to change the contributions methodology. Perhaps this legislation will provide the FCC with that authority.
We will continue to follow these issues as the move through Congress and will provide updates as appropriate.
