The Senate Commerce Committee unanimously advanced legislation reauthorizing the FAA through 2021, adopting 56 amendments en bloc without discussion, including several on drones and one requiring that passengers be barred from talking on their cellphones during flights. “Our committee has acted to continue advancing unmanned aircraft systems and other aviation innovations while offering airline passengers new protections,” said a statement from Chairman John Thune, R-S.D., whose substitute amendment was approved during the Thursday markup.

GAO found continuing "weaknesses" in Lifeline USF program management despite FCC and Universal Service Administrative Co. efforts to improve controls over finances and enrollment by low-income consumers. There are also broader problems in USF contribution system oversight and the commission's use of a private bank account rather than the Treasury Department to store $9 billion in USF net assets, said a May 30 GAO report released Thursday. Policymakers and others disagreed on the extent to which the previous FCC's actions already were addressing some of the issues, but Chairman Ajit Pai made it clear he plans to do more.

The Senate Commerce Committee plans a Thursday markup of the Federal Aviation Administration Reauthorization Act (S-1405), which includes drone regulatory language. Committee Chairman John Thune, R-S.D., ranking member Bill Nelson, D-Fla., and other filed the bill last week (see 1706220057). The markup will begin at 9 a.m. in 106 Dirksen. The committee also plans to mark up S-875, which would require GAO “to conduct a study and submit a report on filing requirements under the Universal Service Fund programs." The bill, filed in April, would require the GAO report to “analyze the financial impact of those filing requirements and provide any recommendations on how to consolidate redundant filing requirements” (see 1705110060).

The Senate Commerce Committee plans a Thursday markup of the Federal Aviation Administration Reauthorization Act (S-1405), which includes drone regulatory language. Committee Chairman John Thune, R-S.D., ranking member Bill Nelson, D-Fla., and other filed the bill last week (see 1706220057). The markup will begin at 9 a.m. in 106 Dirksen. The committee also plans to mark up S-875, which would require GAO “to conduct a study and submit a report on filing requirements under the Universal Service Fund programs." The bill, filed in April, would require the GAO report to “analyze the financial impact of those filing requirements and provide any recommendations on how to consolidate redundant filing requirements” (see 1705110060).

The Senate Commerce Committee plans a Thursday markup of the Federal Aviation Administration Reauthorization Act (S-1405), which includes drone regulatory language. Committee Chairman John Thune, R-S.D., ranking member Bill Nelson, D-Fla., and other filed the bill last week (see 1706220057). The markup will begin at 9 a.m. in 106 Dirksen. The committee also plans to mark up S-875, which would require GAO “to conduct a study and submit a report on filing requirements under the Universal Service Fund programs." The bill, filed in April, would require the GAO report to “analyze the financial impact of those filing requirements and provide any recommendations on how to consolidate redundant filing requirements” (see 1705110060).

Two more Alaska entities asked the FCC not to use a rural healthcare (RHC) reserve fund to reduce the USF contribution factor to 17.1 percent of carrier interstate and international telecom end-user revenue. "While using RHC program reserve funds may help lower the contribution factor in the near term, that decision could have negative long-term implications on rural health care services across our country," said a Sitka Counseling and Prevention Services filing Wednesday in docket 96-45. "We urge the FCC to fully fund the RHC program and not to use previously collected RHC reserve funds to reduce the universal service contribution factor. ... We now face having to pay 7.5 percent of our approved FY 2016 application. For many of us, that equals hundreds of thousands of unbudgeted dollars, which in turn means a loss of telemedicine services and layoffs, negatively impacting healthcare in our communities." Chugachmiut, a tribal organization, made an identical filing. Alaska Communications previously made a similar request (see 1706200049). The proposed 17.1 percent contribution factor takes effect Tuesday absent commission action.

Alaska Communications asked the FCC to include $100 million in rural healthcare (RHC) support demand in its Q3 USF contribution factor calculations. The telco took issue with the Office of Managing Director's June 13 proposal for a factor of 17.1 percent of carrier end-user interstate and international telecom revenue, which included an "unexplained 'adjustment' of the full $100 million of RHC demand" (see 1706130072). "W]ithout this 'adjustment,' the correct contribution factor would be only marginally higher, about 17.9 percent," said the company's filing Tuesday in docket 96-45. The 17.1 percent contribution factor is to take effect June 27 absent commission action. Alaska Communications said a review of Universal Service Administrative Co. filings found "virtually no justification for the abrupt shift" on June 2, "when USAC suddenly concluded" that the RHC program was overfunded and revised its demand projection downward by $100.85 million. USAC's decision to project RHC demand "after netting out purportedly excess collections from previous years violates" the Wireline Bureau's "clear and explicit guidance not to do so," the telco wrote. The FCC also should consider various RHC changes putting pressure on the program's "grossly inadequate" $400 million annual budget cap, and maintain reserve funds "to smooth the transition and to bridge the gap between the very real demand and limited funds," the company said. "The Commission should not borrow from the RHC reserve for a lower contribution factor -- a temporary gain of only cosmetic benefit to the national interest." The telco recently warned that USF faced a crisis in its RHC program management (see 1706120034).The FCC didn't comment.

A Tuesday Senate Appropriations Financial Services Subcommittee hearing on the FCC FY 2018 budget focused largely on the direction of the commission under Chairman Ajit Pai, with subcommittee Republicans highlighting policy issues Pai championed. Democrats raised concerns with the future of 2015 net neutrality rules and Congress' rollback of ISP privacy rules. President Donald Trump's administration proposed last month that the FCC budget be cut by $18 million, to $322 million, after years of the agency maintaining $340 million in annual funding. The FCC's budget justification document noted a planned reduction of more than 100 employees (see 1705230041).

Additional fixes to FCC funding for USF programs that impact broadband deployment in rural and remote areas are needed to overcome ongoing shortcomings, said lawmakers and industry experts Tuesday at a Senate Communications Subcommittee hearing. Lawmakers noted concerns with USF's “stand-alone broadband” problem and the high-cost fund, as expected (see 1706160055), and questioned the accuracy of current broadband service measurements. The subcommittee also considered the FCC's Rural Health Care program.

Additional fixes to FCC funding for USF programs that impact broadband deployment in rural and remote areas are needed to overcome ongoing shortcomings, said lawmakers and industry experts Tuesday at a Senate Communications Subcommittee hearing. Lawmakers noted concerns with USF's “stand-alone broadband” problem and the high-cost fund, as expected (see 1706160055), and questioned the accuracy of current broadband service measurements. The subcommittee also considered the FCC's Rural Health Care program.