Members of the congressional Universal Service Fund revamp working group are considering whether, and how much, the 5th U.S. Circuit Court of Appeals' ruling will affect their rollout of a framework for overhauling the program. The court ruled last week that the FCC's USF contribution factor is unconstitutional (see 2407240043). Experts believe lawmakers will likely factor the ruling into the framework, but it could be moot should the U.S. Supreme Court reverse the decision on appeal (see 2407260044). Uncertainty about USF’s future will likely extend the working group’s already lengthy process, lobbyists told us.

The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.

Kentucky Gov. Andy Beshear and North Carolina Gov. Roy Cooper possess the best telecom policy credentials among the main contenders to be the Democrats’ vice presidential nominee, broadband advocates and other policy observers told us. All the contenders hold broadly similar views to Vice President Kamala Harris on broadband and telecom policy matters, but could bring different perspectives to the ticket, experts said in interviews last week.

Telecom companies argued for more flexible speed testing rules in comments Tuesday at the Nebraska Public Service Commission. Some Nebraska requirements are too challenging, and the state should avoid duplicating FCC-mandated tests, they said. Sometimes the "costs of conducting testing exceed the benefits" of it, Nebraska Rural Independent Companies (RIC) said.

The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."

FCC commissioners approved 3-2 a draft order and Further NPRM at their Thursday open meeting that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services. The FCC Republicans issued dissents as expected (see 2407170035). In a lengthy dissent, Commissioner Brendan Carr questioned whether the order would survive a legal challenge.

The U.S. Supreme Court’s recent decisions in Loper Bright Enterprises v. Raimondo, which overruled the Chevron doctrine (see 2406280043), and in SEC v. Jarkesy (see 2406270063) were “a good thing,” FCC Commissioner Brendan Carr said Wednesday during a Multicultural Media, Telecom and Internet Council webinar. Other former FCC officials disagreed sharply with the rulings that appear to expand judges' power while reining in regulatory agencies like the FCC.

It seems likely FCC commissioners will approve 3-2 a draft order and Further NPRM allowing schools and libraries to use E-rate support for off-premises Wi-Fi hot spots and wireless internet services. FCC Republicans are expected to issue dissents. Some advocates hope the item will be tweaked to address fixed wireless access and partnerships with nontraditional providers (see 2406270068). Commissioners will vote at their open meeting Thursday.

Satellite operators and broadcasters want the FCC to phase in Space Bureau regulatory fee increases, expand the payor base and maintain COVID-19 pandemic regulatory fee relief measures, according to comments filed by Monday's deadline in docket 12-108. Satellite interests repeatedly warned of fee shock, particularly as the FCC proposes big jumps in fees to cover costs associated with last year’s creation of the bureau (see 2304110002). The agency should “maximize fairness in the payment process” by continuing “the availability of the extraordinary relief measures for financially distressed regulatees,” a joint filing from state broadcast associations said.

States hope they can increase federal engagement on telecom no matter who is president in 2025, current and former state utility commissioners said in interviews. In a possible second Donald Trump presidency, “the states and localities are really going to be where broadband policy is made,” predicted Gigi Sohn, Benton Institute for Broadband & Society senior fellow. Some said there is a lot of uncertainty about how a Trump administration might change rules for state grants under NTIA’s $42.5 billion broadband equity, access and deployment (BEAD) program.