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Congress·In Committee·9 months ago

House Bill Would Make Big Tech Help Fund Universal Broadband Access

Also known as: Lowering Broadband Costs for Consumers Act of 2025

Legislative Progress

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Key Points

  • Congress would require the Federal Communications Commission to change who pays into the Universal Service Fund, adding broadband providers and large online platforms (like streaming, search, social media, and cloud).
  • The goal is to ease the cost pressure that can show up on consumers’ phone and internet bills by spreading the funding responsibility to more companies.
  • Small edge providers would be exempt if they carried under 3% of U.S. broadband data and made under $5 billion in U.S. revenue, and very small “de minimis” contributors could also be exempt.
  • The bill also tells the FCC to create a new support program for high-cost areas to help eligible broadband companies cover costs that can’t be recovered through affordable customer rates.
  • The FCC would have 18 months after the bill becomes law to finish the main rulemakings, and it would enforce the new requirements using its existing powers.
TelecommunicationsConsumer ProtectionInfrastructure

Milestones

2 milestones2 actions
Jun 17, 2025House

Referred to the House Committee on Energy and Commerce.

Jun 17, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 18 months after the law is enacted

FCC finishes a rulemaking expanding who must contribute to the Universal Service Fund (USF)

This is when new USF payments for broadband providers and large online services could be finalized, which could later affect internet prices and platform prices.

Within 18 months after the law is enacted

FCC finishes a rulemaking creating a new USF high-cost support mechanism for certain broadband providers

This is when funding rules could be set to help one eligible carrier per area cover high-cost expenses without relying only on higher local customer prices.

After the FCC issues final USF contribution rules

USF contribution exemptions for smaller edge providers take practical effect through FCC rules

Smaller online services that meet both thresholds (under 3% of U.S. data and under $5B U.S. revenue) would likely avoid new payments, reducing the chance they raise prices because of this law.

After the FCC issues final high-cost support rules

FCC selects and limits high-cost support so no more than one eligible carrier per area receives it

In some places, one provider may get support to build/maintain networks while competitors do not, which could affect local competition and service rollout pace.

Related News

3 articles
Bloomberg Law News·7 months ago

Supreme Court Kept Universal Service Boondoggle on Life Support

Critics argue the bill, which they dub the 'Raising Communications Costs for Taxpayers Act,' would lead to higher app prices and less free content by taxing 'edge providers' like search engines and streaming services to fund the Universal Service Fund.

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GovTech·10 months ago

What's New in Digital Equity: What Ending the DEA Will Mean

The legislation directs the FCC to require edge and broadband providers to contribute to the Universal Service Fund (USF), aiming to reduce the financial burden on consumers and rural providers while strengthening broadband access in rural America.

C=
Fierce Network·almost 2 years ago

The Universal Service Fund is stuck in its own Groundhog Day

The Lowering Broadband Costs for Consumers Act would see providers that account for more than 3% of total U.S. annual internet traffic and earn more than $5 billion in annual revenue contribute to the USF, though similar past efforts have struggled to gain traction.

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Source Information

Document Type

Congressional Bill

Official Title

Lowering Broadband Costs for Consumers Act of 2025

Bill NumberHR 4032
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Energy and Commerce.

Sponsor

Cosponsors

(22)
D: 8R: 14

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.