NCSL Comments on Universal Service Fund Reform

NCSL Comments on Universal Service Fund Reform

Dear Chair Fisher and Ranking Member Luján,

Thank you for the opportunity to submit these comments on behalf of the National Conference of State Legislatures, the bipartisan organization representing the legislatures of our nation's states, territories, commonwealths and the District of Columbia. Our mission is to ensure that states have a strong, unified voice in the federal system as well as to advance the effectiveness and independence of state legislatures and foster interstate cooperation. We provide research, technical assistance and opportunities for policymakers to exchange ideas on pressing issues, ensuring that state perspectives are well represented in the national dialogue.

At our most recent NCSL Legislative Summit, our signature event, our bipartisan body of state legislators passed a resolution supporting Universal Service Fund reform. We urge the Working Group to move forward with its efforts to ensure affordable access to telecommunications for all Americans.

As broadband internet becomes as essential as electricity, and emerging technologies redefine connectivity, it is imperative that the USF evolve to meet modern demands. Despite USF programs like E-Rate and Lifeline, millions of Americans, especially in rural areas, still lack access to reliable, high-speed internet.

While Congress created the USF to ensure affordable access to telecommunications for all, its structure is increasingly outdated in the face of rapidly evolving digital technologies. The USF still relies heavily on declining revenues from traditional voice services, making its funding model both unsustainable and misaligned with today's connectivity needs.

To uphold the fund's foundational mission of universal access, NCSL believes Congress must explore expanding the USF to support next-generation communication technologies and assess whether the current funding model reflects today's connectivity landscape. Doing so offers a threefold benefit: (1) Enhancing public safety and resilience as advanced networks improve emergency response, disaster recovery and cybersecurity. (2) Driving economic growth and innovation as expanded broadband access fuels local business development, remote work, STEM education and telehealth, while modern infrastructure boosts U.S. competitiveness in the global digital economy. (3) Bridging the digital divide to help ensure access to new technologies for rural and low-income communities.

Once again, thank you for the opportunity to provide comments. NCSL would appreciate the opportunity to meet with members of the Working Group to discuss how state legislators can be of assistance as you consider options for modernizing the USF. We believe our bipartisan group can offer valuable insights into this critical work. If you have any questions, please feel free to contact me, or have your staff contact Barrie Tabin of our government affairs team.

Sincerely,

Tim Storey
Chief Executive Officer
National Conference of State Legislatures

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