Congressional Democratic leaders remain intent on attaching funding to restore the FCC’s lapsed affordable connectivity program to a year-end legislative package (see 2409170066). Some lawmakers acknowledge the push faces long odds in what’s likely to be a fraught lame-duck session. Some ACP boosters believe Capitol Hill’s lame-duck dynamics could change depending on the outcome of the Nov. 5 election. GOP lawmakers aren’t enthusiastic about attaching ACP money to a legislative vehicle this year, in part citing their longstanding demand for a major overhaul of the program in conjunction with additional funding.

Universal service "has been an essential component" of federal telecom policy since the FCC's creation, the agency argued in a petition for writ of certiorari before the U.S. Supreme Court. Filed Monday (docket 24-354), the FCC's petition said the U.S. 5th Circuit Court of Appeals' ruling in favor of Consumers' Research's challenge of the Universal Service Fund contribution methodology was "incorrect." Moreover, the agency said it "did not delegate governmental power" when it designated the Universal Service Administrative Co. as USF administrator (see 2407240043).

Consumers' Research asked the 5th U.S. Circuit Court of Appeals to reverse the FCC's Universal Service Fund contribution factor for Q4 of FY 2024 (see 2409130054). In a filing posted Thursday (docket 24-60494), the group repeated its claim that USF contributions are illegal taxes that the Universal Service Administrative Co. collects and "should be rejected."

Industry experts expect the FCC will petition the U.S. Supreme Court for a writ of certiori following the split rulings between the 5th U.S. Circuit Court of Appeals and the 6th and 11th circuits on the Universal Service Fund contribution mechanism, they said during a Schools, Health, Libraries & Broadband Coalition webinar Wednesday. The 5th Circuit sided with Consumers' Research in its challenge of the contribution mechanism and agreed to stay its ruling pending the commission's petition (see 2408270030).

An order approving Audacy’s request for a temporary exemption from the foreign-ownership rules was adopted but isn’t expected to be released before next week, FCC officials told us. The waiver would allow Audacy to complete foreign-ownership review after it finishes a bankruptcy restructuring that involves control of the broadcaster passing to a fund affiliated with George Soros' family. FCC Republicans hadn’t submitted dissenting statements Wednesday afternoon but indicated they plan to do so, the agency officials said. Broadcast industry officials, attorneys and others told us the Audacy transaction wouldn’t attract as much attention without Soros’ name attached, and that radio broadcasters have long sought increased private equity investment in their industry. “They’re making it a political ax,” said Christopher Terry, University of Minnesota media law professor. “The radio industry has been cash-strapped for 20 years.”

Frontier Communications would no longer receive Arizona Universal Service Fund (AUSF) subsidies under a proposed settlement in a ratemaking docket at the Arizona Corporation Commission. Frontier and ACC staff filed the pact Friday in docket T-03214A-23-0250. Frontier is the only company in the state receiving this high-cost support. If the proposal is approved, Frontier will forgo collecting any further AUSF funding as well as about $104,000 it's currently owed. In addition, the agreement would adjust Frontier basic service rates that were last revised in 1989. It would designate certain basic telecom services as competitive and deregulate other tariffed intrastate telecom services. Frontier would offer the basic services through a price-cap rate structure. The agreement said "appropriate ACC oversight of Frontier's regulated services” will continue. In March, Arizona commissioners refused hiking monthly AUSF surcharges because they said they wanted to address the issue in the Frontier ratemaking docket.

The FCC Wireline Bureau wants comments by Oct. 21, replies by Nov. 5, in docket 05-337 on the National Exchange Carrier Association's proposed changes to the average schedule Universal Service Fund high cost loop support formula. The proposed formula would take effect Jan. 1, said a public notice Thursday.

The FCC urged that the 5th U.S. Circuit Appeals Court reject Maurine and Matthew Molak's challenge of the commission’s October declaratory ruling clarifying that the use of Wi-Fi on school buses is an educational purpose and eligible for E-rate funding (see 2408300027). In a brief Wednesday, the agency argued the Molaks lack standing to bring the challenge and the agency acted within the law when it addressed school bus Wi-Fi.

Consumers' Research objected again to the FCC's proposed quarterly USF contribution factor for Q4 2024. The group said in comments posted Friday in docket 96-45 that the FCC should reject the proposed 35.8% contribution factor and let Congress "fund universal service via a standard tax appropriation." The group challenged the USF contribution mechanism in the 5th U.S. Circuit Court of Appeals, which granted a stay of its ruling in favor of Consumers' Research pending the FCC's petition for a writ of certiorari before the U.S. Supreme Court last month (see 2408270030).

House Communications Subcommittee members traded partisan barbs about NTIA’s implementation of the $42.5 billion broadband equity, access and deployment (BEAD) program, as expected (see 2409040040). Republicans delivered most of the criticism, in part blasting NTIA for what they view as an unnecessarily long timeline for rolling out the money. House Commerce Committee panel GOP leaders launched a probe in July of NTIA’s BEAD-related communications with state broadband offices (see 2407090057). Democrats defended NTIA’s management of the program and blasted GOP lawmakers for obstructing recent broadband funding efforts.