The FCC proposed fines of $8.8 million against 22 applicants in the Rural Digital Opportunity Fund Phase I auction for apparently violating agency requirements by defaulting on their bids last year between May 3 and Dec. 16. Two applicants also failed to submit audited financial paperwork, resulting in additional fines. “The FCC provided clear guidance in its rules and notices on the monetary forfeitures associated with defaults in Auction 904,” the FCC said Monday: “The bid defaults prevented 2,994 census block groups in 31 states and an estimated 293,128 locations from receiving new investments in broadband infrastructure.” Leading the list, California Internet, a CLEC, faces a fine of more $3 million and Connect Everyone, a wholly owned subsidiary of Starry, a fine of more than $3.8 million. Some proposed fines were less than $10,000. “Not following the rules has consequences,” said Chairwoman Jessica Rosenworcel: “For those who failed to meet their obligations, today’s action shows the Commission takes seriously its commitment to hold applicants accountable and ensure the integrity of our universal service funding.”

Rural healthcare program participants and advocates welcomed FCC proposals on the program's rate determination rules, whether to reinstate the support cap for satellite services, and how providers can receive funding as soon as they become eligible. Comments were posted through Tuesday in docket 17-310. Commissioners adopted the NPRM in January, which also sought comments on how to revise the FCC’s Form 466 to improve data collection efforts (see 2301260041).

Carriers got part of what they asked for in response to an FCC Further NPRM proposing to extend USF support to eligible mobile and fixed carriers in Puerto Rico and the U.S. Virgin Islands, approved by commissioners 4-0 in October (see 2210270046). The FCC on Wednesday approved a transitional support period of up to 24 months for mobile services. For fixed services, the agency extended the phase-down of frozen support at its current monthly amount until Dec. 31, 2025.

House Communications Subcommittee ranking member Doris Matsui of California and other Democrats opposed many of the 32 bills and legislative drafts aimed at revamping connectivity permitting processes that the subpanel examined during a Wednesday hearing, arguing the current proposals are too broad and suggesting lawmakers gather more input before moving forward. Subcommittee Chairman Bob Latta of Ohio and other Republicans framed the measures as a necessary component of the federal government’s push to improve broadband connectivity that Congress failed to include in the Infrastructure Investment and Jobs Act.

Top Republicans on the House and Senate Communications subcommittees told us their recent broadband oversight moves weren't unfairly partisan and they seek a more critical assessment of the Biden administration’s implementation of connectivity programs from the Infrastructure Investment and Jobs Act and COVID-19 aid measures to prevent appropriations misuse. The subpanels' top Democrats and other stakeholders told us they’re not particularly concerned so far about the tone of GOP queries but are continuing to monitor how they compare with Congress’ past oversight of the controversial Broadband Technology Opportunities Program and other initiatives.

Federal officials highlighted the need for continued stakeholder engagement and strategic investments to ensure broadband deployment efforts funded by the Infrastructure Investment and Jobs Act are implemented efficiently, during an NTCA event Monday. USDA Rural Development Deputy Undersecretary Farah Ahmad also announced the launch of a $20 million broadband technical assistance program to assist rural development projects.

Arizona Gov. Katie Hobbs (D) signed an anti-robocalls bill Wednesday aimed at fighting automated calls and texts. HB-2498 received nearly universal support in the legislature. Also that day, the Montana House concurred with the Senate on a local internet bill (SB-174) that would allow state agencies and political subdivisions to provide funding to private broadband service providers. The bill next needs a signature from Gov. Greg Gianforte (R). The Tennessee Senate voted 33-0 Wednesday to pass a bill that would make changes to broadband laws including raising the state's minimum broadband speed standard to 100 Mbps download and 20 Mbps upload, from 10/1 Mbps. The House previously passed HB-1211. Meanwhile in Texas, the Senate voted 31-0 Wednesday to pass a bill (SB-1425) that would extend a Sept. 1 sunset on USF support for small telcos until Sept. 1, 2033. On Thursday, the Senate added a bill (SB-1893) that would ban TikTok on state government devices to the local and uncontested calendar, which is reserved for noncontroversial bills. Virginia's TikTok ban bill passed the legislature a second time Wednesday after lawmakers agreed to a slight wording change recommended by Republican Gov. Glenn Youngkin (see 2303280042). The Missouri House Elementary and Secondary Education Committee voted 13-1 Wednesday to clear HB-492, which would require a pilot program for schools to teach media literacy including for social media content.

Alaska USF’s last distribution would come in January under a tentative schedule presented Wednesday by the Alaska Universal Service Administrative Co. (AUSAC). The company could dissolve soon after, AUSAC Agent Keegan Bernier told commissioners at a livestreamed Regulatory Commission of Alaska (RCA) meeting. AUSAC is preparing for sunset of Alaska USF regulations June 30. The final AUSF remittance would happen in July. AUSAC would distribute $1 million that month and then $77,000 in January before the company wound down. Some are looking for options to renew AUSF before it ends (see 2304110015), but at Wednesday's meeting Commissioner Robert Pickett sounded pessimistic about saving the fund: "We've been told this program essentially is going to be terminated and there are no ... realistic options." Later in the meeting, Pickett predicted "a series of events in which rural LECs are going to have a difficult time and then it will become a political emergency" that could lead to a legislative response. The problem of keeping rural phone rates low "needs a different mechanism that makes sense," he added. Multiple commissioners said they struggled to see how they could classify the looming AUSF sunset as an emergency, a procedural move that would let them expedite making new rules. Chair Keith Kurber and Commissioner Bob Doyle said they first want to see comments due May 5 on repealing AUSF regulations.

Alaska USF’s possible June 30 termination is raising concerns and producing much discussion among industry and consumer advocates in the state. A spokesperson for Gov. Mike Dunleavy (R) told us the Regulatory Commission of Alaska (RCA) may decide the fate of AUSF, which was established to keep phone rates low in high-cost rural areas. If those dollars go away, “somebody has to pay those costs, and the somebody is most likely going to be those rural ratepayers,” said Alaska Chief Assistant Attorney General Jeff Waller in an interview Friday.

Alaska officials are making arrangements for the state USF’s expected demise June 30. “There is still a lot of preparation and research to be completed,” said Alaska Universal Service Administrative Co. (AUSAC) Agent Keegan Bernier at a Regulatory Commission of Alaska meeting livestreamed Wednesday. The RCA seeks written comments by May 5 on proposed regulatory revisions related to AUSF, said Chair Keith Kurber.