The Southeastern Rural Broadband Alliance asked the FCC to update the Connect America Fund broadband loop support (CAF BLS) mechanism as it considers modifications to the Alternative Connect America Model program. The group said in a meeting with an aide to Chairwoman Jessica Rosenworcel and Wireline Bureau staff that doing so will "harmonize federal funding to achieve the nation’s goal of ensuring universal access to broadband and closing the digital divide in a coordinated fashion," per an ex parte filing posted Wednesday in docket 10-90. The alliance also asked the FCC to consider adopting a "voluntary incentive option" for CAF BLS recipients, saying it would "ensure that all serviceable locations have access to 100/20 Mbps broadband."

T-Mobile would upend the 1996 Telecom Act principle of cooperative federalism if courts stopped California from moving to a connections-based USF contribution mechanism, argued the California Public Utilities Commission. In an answering brief Tuesday at the 9th U.S. Circuit Court of Appeals, the CPUC also disagreed that a flat-fee surcharge discriminates against federal affordable connectivity program (ACP) participants.

The FCC’s Office of Inspector General (OIG) shares “many of the same concerns” top Republican leaders of the House and Senate Commerce committees voiced in early May about the commission's management of broadband money it received for the affordable connectivity program (ACP) during the COVID-19 pandemic (see 2305080067), acting IG Sharon Diskin told the GOP leaders Tuesday in a letter we obtained. House Commerce Chair Cathy McMorris Rodgers, R-Wash., and Senate Commerce ranking member Ted Cruz, R-Texas, sought information from the FCC OIG about ACP’s administration, citing ongoing debate about extending its life.

The FCC Enforcement Bureau proposed a $1.4 million fine against PayG for failing to timely file telecom reporting worksheets with the Universal Service Administrative Co. between 2018 and 2021, said a notice of apparent liability Tuesday. The notice said PayG failed to file and pay on time for the USF, Telecom Relay Service Fund, North American numbering plan and federal regulatory fees.

Rural healthcare program (RHC) participants and industry continued to back the FCC's efforts to modify the program's rate methodologies, in reply comments posted Tuesday in docket 17-310 (see 2304250074). Some urged the FCC to facilitate competitive bidding and a copayment structure in the telecom program and Healthcare Connect Fund (HCF) rather than revert to the commission's previous rates database.

The FCC Wireline Bureau directed the Universal Service Administrative Co. to fully fund eligible category one and two E-rate requests for funding year 2023. Total demand will be $1.66 billion for category one services and $1.29 billion for category two services, said a public notice Friday in docket 02-6.

California appropriators advanced several telecom and internet bills at livestreamed meetings Thursday. The Assembly Appropriations Committee voted unanimously for AB-1065, which would explicitly authorize wireless broadband providers to get support from the California Advanced Services Fund (CASF) broadband infrastructure grant and federal funding accounts. But it held back AB-1461, which would have permanently required the California Public Utilities Commission to allocate $1 billion each to urban and rural counties from the CASF federal funding account. Current law requires that split only until June 30. With Republicans voting no, the committee passed AB-41, which aims to tighten digital equity requirements in the state’s video franchise law (see 2304200044). Republicans didn’t vote at all on two other approved bills: AB-296 on 911 public education and AB-414 to establish a digital equity bill of rights for Californians. The committee decided not to advance AB-276, which would have prohibited anyone under 21 from using a mobile device while driving, even hands free. It also held back AB-1276, which would have required a University of California at Davis Health study on 911 call and dispatch data. Meanwhile, the Senate Appropriations Committee voted 7-0 for SB-60 to require social media platforms to remove posts on illegal drug sales and SB-74 to prohibit high-risk social media apps that are at least partly owned by an entity or "country of concern." The panel also unanimously supported SB-318 to require the California Department of Social Services to develop and run a grant program for 211 support services, which some counties still lack. The committee voted 5-2 for SB-362, which would transfer a data broker registry to the California Privacy Protection Agency from the state justice department and create a global deletion system. The Senate panel held back SB-754, which would have banned the California Public Utilities Commission from incorporating broadband revenue in calculations for rate regulating small telcos. SB-860, which sought to increase broadband adoption by requiring more state outreach on available subsidies, also failed to advance. All the approved bills may go to the floor.

The 6th U.S. Circuit Court of Appeals should grant Consumers’ Research’s request for a rehearing of its challenge of the FCC’s USF 2021 Q4 contribution factor because the authority to decide taxing and spending policies can't be "delegated,” said the Competitive Enterprise Institute and the Free State Foundation in an amicus brief Tuesday (docket 21-3886).

Commissioners supported cutting in half the Texas USF surcharge, unanimously without discussion, at a livestreamed Texas Public Utility Commission meeting Thursday. The monthly TUSF fee will drop to 12% from 24% of intrastate telecom revenue on July 1, which is when the commission expects to complete arrearage and interest payments to rural local exchange carriers that it underpaid (see 2305040026). Texas RLEC groups sounded optimistic Thursday they would be repaid.

Senate Communications Subcommittee Chairman Ben Ray Lujan, D-N.M., and ranking member John Thune, R-S.D., said during and after a Thursday hearing they’re forming a USF-focused task force to evaluate how to move forward on a comprehensive revamp of the program that may update its contribution factor to include non-wireline entities. Senate Communications members cited several telecom policy matters that intertwine with the push for USF changes, including future funding for the FCC’s affordable connectivity fund and restoring the commission’s lapsed spectrum auction authority.