Post-Election Outlook | The Post-Election Future of the Universal Service Fund

December 11, 2024

Reading Time : 2 min

The constitutionality of the Universal Service Fund (USF) funding mechanism is currently being litigated, and its future has long been the subject of debate in Congress. The U.S. Court of Appeals for the 5th Circuit found the funding mechanism unconstitutional, a holding that is in conflict with decisions from the U.S. Courts of Appeals for the 6th and 11th Circuits upholding the constitutionality of the program. The Supreme Court has accepted the case and will hear arguments in the coming months. Should the Supreme Court find the funding mechanism unconstitutional, Congress will need to step in to keep the program funded. Former Federal Communications Commission (FCC) Chairman Ajit Pai supports Congress appropriating the dollars to fund USF in order to escape the current situation in which the USF obtains “more and more money from a declining base of contributors.” There has been a bipartisan working group in Congress focused on reforming the program, but those efforts have yet to produce legislation. The most straightforward fix may be for Congress to move the funding to the regular appropriations process and fund it annually. However, defenders of the current program have argued that this will create uncertainty and make it difficult for carriers who depend on the funding to operate. Republicans have advocated for reforming the program and giving Congress more oversight, which would come with direct funding.

Additionally, Commissioner Brendan Carr has voiced support for expanding the contribution pool beyond traditional telecom providers and including online platforms. Commissioner Carr has noted that while Big Tech derives “tremendous value from the federal government’s universal service investments – using those federally supported networks to deliver their products and realize significant profits – these large corporations have avoided paying a fair share into the program.” By requiring traditional telephone customers to contribute to a fund that is “increasingly used to support broadband networks,” Commissioner Carr has argued that the FCC’s current approach is “the regulatory equivalent of taxing horseshoes to pay for highways,” suggesting that Congress should require Big Tech companies “to start contributing an appropriate amount.” Commissioner Carr has conceded that an act of Congress would be necessary to accomplish this, as the FCC presently has no jurisdiction to do so on its own.

Share This Insight

Previous Entries

Interconnected TMT

October 31, 2025

Following a busy October agenda at the Federal Communications Commission (FCC or Commission) and despite the continuing government shutdown that has halted some of the FCC’s operations, FCC Chairman Brendan Carr released a tentative agenda for the Commission’s November Open Meeting on October 30, 2025.  The draft items for the meeting, which is scheduled to take place on Thursday, November 20 at 10:30 a.m. ET, represent a continuation of the Chairman’s Build America agenda with a focus on freeing up more mid-band spectrum for terrestrial use, modernizing telecommunications relay services, deleting obsolete rules and addressing cybersecurity threats.  Details on the four items expected to be considered at the Open Meeting are summarized below:

...

Read More

Interconnected TMT

October 10, 2025

Despite the ongoing government shutdown and the Federal Communications Commission’s (FCC) cessation of most of its operations, on October 7, the FCC Chairman Brendan Carr released an ambitious and expansive tentative agenda for the Commission’s October Open Meeting, which is scheduled to take place on Tuesday, October 28th at 10:30 a.m. ET. The Chairman is dubbing October “Space Month” because of new initiatives aimed at modernizing the regulatory framework for space innovation. Public drafts of the nine items expected to be considered at the Open Meeting are detailed below:

...

Read More

Interconnected TMT

September 11, 2025

On September 9th, the Federal Communications Commission (FCC or the Commission) released a tentative agenda for its September Open Meeting, which is scheduled to take place on Tuesday, September 30, at 10:30 a.m. ET. The Commission released public drafts of the five items expected to be considered at the Open Meeting, which are detailed below:

...

Read More

Interconnected TMT

July 23, 2025

On July 17, the FCC released a tentative agenda for its August Open Meeting, which is scheduled to take place on Thursday, August 7 at 10:30 a.m. ET. The Commission released public drafts of the eight items expected to be considered at the Open Meeting, which are detailed below:

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.