The Universal Service Fund and COVID-19: The FCC and Industry Response

The Universal Service Fund and COVID-19: The FCC and Industry Response

Updated June 4, 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, de-enrollment procedures, and other
Universal Service Administrative Company (USAC), an
waivers have been extended until August 31, 2020.
independent not-for-profit organization tasked with
Temporary waivers regarding program recertification and
administering the USF. The FCC has used the USF to
reverification requirements have been issued, according to
address the growing connectivity needs and challenges
the FCC, to enable Lifeline program providers to focus on
Americans face during the COVID-19 pandemic. Three
increasing new enrollments and protecting current program
USF programs, the Lifeline Program, the Schools and
subscribers. The FCC has also temporarily eased income
Libraries (E-Rate) Program, and the Rural Health Care
eligibility proof rules, modified application rules for those
Program, have been viewed as instrumental to support the
living on rural tribal lands, and waived requirements that all
nation’s connectivity and social distancing needs.
enrollment representatives—individuals who represent
providers and seek out new enrollees to subscribe to the
FCC Authority
USF Lifeline Program—register with the program
The FCC, an independent regulatory agency responsible for
administrator, USAC.
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.
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The Universal Service Fund and COVID-19: The FCC and Industry Response
facilitate distance learning during the pandemic. The FCC
target areas hardest hit by COVID-19, but the program is
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.
Industry Response
(See “Industry Response,” below.)
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 which has been extended until June 30,
well as through congressional direction, to address the
2020, makes a commitment that a provider will not
growing need for access to telehealth services during the
terminate service to any residential or small business
pandemic.
customers because of an inability to pay due to the
pandemic; will waive any late fees that any residential or
The FCC, on April 2, 2020, released final rules to
small business customer may incur due to the pandemic;
implement the Connected Care Pilot Program. This
and will open a company’s Wi-Fi hotspots to any American
program is a three-year program to help subsidize up to
that needs them.
85% of eligible health care providers’ costs of providing
connected care services to, in particular, eligible low-
Individual providers have also voluntarily expanded access
income Americans and veterans at their residence or mobile
to and upgraded their low-income programs, raised
location. Funding for the program, which is set at no more
broadband speeds, and expanded usage data caps. Other
than $100 million, will come from the USF. The pilot
providers have expanded access to Wi-Fi hot spots at fixed
program, while not developed in direct response to the
locations and have provided devices and established Wi-Fi
pandemic, is expected to help assess how to help contain
connections on neighborhood-positioned school buses to
and treat health conditions during emergencies such as a
address student distance learning needs. Still others have
pandemic. The application filing window date is pending.
requested and received from the FCC special temporary
authority to share unused commercial spectrum to increase
Separately, the FCC announced, on April 2, 2020, the
short-term network capacity to meet growing mobile
establishment of the COVID-19 Telehealth Program, a
broadband demand.
temporary program to help health care providers to
purchase telecommunications services, broadband
Industry’s voluntary actions, while helpful, have raised
connectivity, and devices for providing telehealth services
questions regarding how effective some measures are and
during the pandemic. Funding will be used to provide
whether providers can sustain these measures over time.
telehealth services to patients at their homes or mobile
Some have questioned how consistently the pledge is being
locations. The program is not funded through the USF, but
upheld and to what degree providers are informing
through a $200 million appropriation in the Coronavirus
subscribers of its provisions. Others have questioned how
Aid, Relief, and Economic Security Act (P.L. 116-136).
long providers, particularly those that lack extensive
The FCC is required to use the funds to “prevent, prepare
financial reserves, can continue to offer assistance without
for, and respond to coronavirus, domestically or
reimbursement. Whether the FCC, other federal agencies,
internationally, including to support efforts of health care
or Congress will take additional action to address
providers to address coronavirus by providing
Americans’ growing broadband and telecommunications
telecommunications services, information services, and
needs remains to be seen.
devices necessary to enable the provision of telehealth
services during an emergency period.” The program will
https://crsreports.congress.gov

The Universal Service Fund and COVID-19: The FCC and Industry Response

IF11520
Angele A. Gilroy, Specialist in Telecommunications Policy

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