April 24, 2020
The Universal Service Fund and COVID-19: The FCC and
Industry Response
The need for social distancing, due to the Coronavirus
Since the pandemic began, the FCC has taken steps,
Disease 2019 (COVID-19) pandemic, has led to an increase
including the temporary lifting or suspension of program
in remote working, distance learning, and telemedicine—
rules, the modification of program requirements, the
activities that depend on connectivity to the
issuance of temporary waivers, and the increase of budgets,
telecommunications and broadband network. The Federal
to modify USF programs to address public interest needs.
Communications Commission (FCC) and its Universal
Service Fund (USF) programs are viewed by some as
Lifeline Program
avenues to address this growing need. The FCC has taken
The implementation of social distancing measures to slow
steps to expand and modify three of the USF programs: the
the spread of COVID-19 has led to a growing
Lifeline Program; the Schools and Libraries (E-Rate)
unemployment rate and financial hardship, coupled with the
Program; and the Rural Health Care Program, in response
growing need for connectivity to broadband. The Lifeline
to the pandemic and to address various aspects of social
Program, the only federal program focused on telephone
distancing.
and broadband adoption for eligible low-income
households, is viewed as an instrumental program to
The FCC and the Universal Service Fund address growing connectivity needs of households facing
The USF was established in 1997 under the authority of the
job and financial loss. The FCC has taken steps to protect
Telecommunications Act of 1996 (P.L. 104-104) to
current enrollees and increase enrollment opportunities to
facilitate the deployment and adoption of fixed and mobile
join the Lifeline program.
telecommunications and broadband services. The FCC is
responsible for establishing USF policies and oversees the
Usage requirements and de-enrollment procedures have
Universal Service Administrative Company (USAC), an
been waived until May 29, 2020, to protect current
independent not-for-profit organization tasked with
subscribers from program removal. Temporary waivers
administering the USF. The FCC has used the USF to
regarding program recertification and reverification
address the growing connectivity needs and challenges
requirements have also been issued, according to the FCC,
Americans face during the COVID-19 pandemic. Three
to enable Lifeline program providers to focus on increasing
USF programs, the Lifeline Program, the Schools and
new enrollments and protecting current program
Libraries (E-Rate) Program, and the Rural Health Care
subscribers. The FCC has also temporarily waived
Program, have been viewed as instrumental to support the
requirements that all enrollment representatives—
nation’s connectivity and social distancing needs.
individuals who represent providers and seek out new
enrollees to subscribe to the USF Lifeline Program—
FCC Authority
register with the program administrator, USAC.
The FCC, an independent regulatory agency responsible for
the regulation of interstate and international
The private sector has also taken steps to expand and
communications services, is charged with, among other
enhance its offered and funded low-income programs that
things, developing the policies to meet the principles and
are separate from the Lifeline program. (See “Industry
objectives of the universal service concept. This concept,
Response,” below.)
which has evolved over time, currently embraces the
principle that every American have access to broadband
School and Libraries Program
connectivity and that access to and adoption of broadband
As schools increasingly move to distance learning options
be a national goal. The FCC, under the provisions contained
to address social distancing requirements, the need for
in the Communications Act of 1934, as amended, operates
connectivity so students can gain access to instruction and
based on a public interest standard and as such has some
complete school assignments from home has surged. The
flexibility when establishing and implementing rules and
USF E-Rate Program provides subsidies for eligible
regulations. In general, rules may be waived by the FCC
elementary and secondary schools and classrooms, as well
“on its own motion or on petition if good cause therefor is
as libraries, for internet access, internal network
shown” (47 CFR §1.3). In evaluating good cause for
connections, and telecommunications services.
waivers, the FCC has discretion to waive a rule when
particular facts make compliance inconsistent with the
The FCC has taken some actions to temporarily modify
public interest, and may take into account considerations of
program rules to facilitate distance learning objectives. The
hardship, equity, or more effective implementation of
FCC waived gift rules, until September 30, 2020, to enable
policy. Under this authority, the FCC chose to leverage the
schools and libraries to solicit for and accept improved
USF to help meet the nation’s growing pandemic-related
connections and additional equipment and devices to
telecommunications and broadband needs.
facilitate distance learning during the pandemic. The FCC
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The Universal Service Fund and COVID-19: The FCC and Industry Response
also reiterated that schools and libraries that are closed
not limited to solely treating patients that have COVID-19.
during the pandemic are permitted to allow general public
Full funding is available but the FCC does not anticipate
use of E-Rate supported Wi-Fi networks while on school
awarding more than $1 million to any single applicant. The
and library property. Steps taken to modify administrative
application period opened on April 13, 2020. Funding has
and filing deadlines include extending the application filing
begun to be awarded on a rolling basis and will remain
windows and construction deadlines.
available until the funding is expended or until the current
pandemic has ended.
There is, however, growing pressure to further modify E-
Rate Program rules to support home broadband access for
Additional steps taken by the FCC include supplementing
school-aged children, but some, including FCC Chairman
the current year RHC Program budget to fully fund all
Pai, question whether the FCC has the authority to use the
eligible services, extending the application window until
program to subsidize such services outside the classroom.
June 30, 2020, and lifting gift rules until September 30,
The FCC has not, to date, taken steps to modify the
2020, to allow health care providers to solicit for and accept
program to expand connection subsidies beyond eligible
improved connections and additional equipment for
schools and libraries. The private sector has taken
telemedicine from service providers.
initiatives to increase access to Wi-Fi networks and devices.
(See “Industry Response,” below.)
Industry Response
Social distancing measures have resulted in an increase in
Rural Health Care Program
demand for those seeking access to telecommunications and
Access to telehealth/telemedicine options is seen as a vital
broadband networks, as well as an increase in usage
piece to ensuring the safety and care of heath care providers
demand for those already connected to the network.
and patients alike. Reducing the need to physically go to a
Telecommunications and broadband providers have taken
doctor’s office or other medical facility to address health
voluntary actions to increase access to, and prevent drop off
care needs, whether coronavirus related or not, can help
from, the network as well as to expand network capacity.
prevent the spread of the coronavirus. The Rural Health
One of the most public actions taken has been the
Care (RHC) Program provides subsidies to eligible, largely
commitment by providers to sign the FCC’s Keep
rural, health care providers for telecommunications and
Americans Connected pledge, a voluntary pledge signed by
broadband services to enable telemedicine services. The
over 700 telephone and broadband service providers to
FCC has taken some steps through the RHC Program, as
date. The pledge makes a 60-day commitment that a
well as through congressional direction, to address the
provider will not terminate service to any residential or
growing need for access to telehealth services during the
small business customers because of an inability to pay due
pandemic.
to the pandemic; will waive any late fees that any
residential or small business customer may incur due to the
The FCC, on April 2, 2020, released final rules to
pandemic; and will open a company’s Wi-Fi hotspots to
implement the Connected Care Pilot Program. This
any American that needs them.
program is a three-year program to help subsidize up to
85% of eligible health care providers’ costs of providing
Individual providers have also voluntarily expanded access
connected care services to, in particular, eligible low-
to and upgraded their low-income programs, raised
income Americans and veterans at their residence or mobile
broadband speeds, and expanded usage data caps. Other
location. Funding for the program, which is set at no more
providers have expanded access to Wi-Fi hot spots at fixed
than $100 million, will come from the USF. The pilot
locations and have provided devices and established Wi-Fi
program, while not developed in direct response to the
connections on neighborhood-positioned school buses to
pandemic, is expected to help assess how to help contain
address student distance learning needs. Still others have
and treat health conditions during emergencies such as a
requested and received from the FCC special temporary
pandemic. The application filing window date is pending.
authority to share unused commercial spectrum to increase
short-term network capacity to meet growing mobile
Separately, the FCC announced, on April 2, 2020, the
broadband demand.
establishment of the COVID-19 Telehealth Program, a
temporary program to help health care providers to
Industry’s voluntary actions, while helpful, have raised
purchase telecommunications services, broadband
questions regarding how effective some measures are and
connectivity, and devices for providing telehealth services
whether providers can sustain these measures over time.
during the pandemic. Funding will be used to provide
Some have questioned how consistently the pledge is being
telehealth services to patients at their homes or mobile
upheld and to what degree providers are informing
locations. The program is not funded through the USF, but
subscribers of its provisions. Others have questioned how
through a $200 million appropriation in the Coronavirus
long providers, particularly those that lack extensive
Aid, Relief, and Economic Security Act (P.L. 116-136).
financial reserves, can continue to offer assistance without
The FCC is required to use the funds to “prevent, prepare
reimbursement. Whether the FCC, other federal agencies,
for, and respond to coronavirus, domestically or
or Congress will take additional action to address
internationally, including to support efforts of health care
Americans’ growing broadband and telecommunications
providers to address coronavirus by providing
needs remains to be seen.
telecommunications services, information services, and
devices necessary to enable the provision of telehealth
Angele A. Gilroy, Specialist in Telecommunications Policy
services during an emergency period.” The program will
target areas hardest hit by COVID-19, but the program is
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The Universal Service Fund and COVID-19: The FCC and Industry Response

IF11520


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https://crsreports.congress.gov | IF11520 · VERSION 1 · NEW

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