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Congress·In Committee

Congress Proposes Requiring Big Tech and Internet Companies to Fund Rural Broadband Expansion

A bill to require the Federal Communications Commission to ensure equitable and nondiscriminatory contributions to the mechanisms that preserve and advance universal service, to reduce the financial burden on consumers, and for other purposes.

10 months ago·View on Congress.gov

Legislative Progress

✓ Filed
Review
Senate
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Key Points

  • This bill requires the Federal Communications Commission (FCC) to change how it funds programs that bring internet and phone services to rural or low-income areas. Instead of just relying on fees from traditional phone bills, the bill would require large internet service providers and "edge providers"—like streaming services and social media companies—to pay into the Universal Service Fund.
  • The biggest tech companies would be most affected. Any company that accounts for more than 3% of U.S. internet traffic and makes over $5 billion a year in the U.S. would have to start contributing. This includes companies that run search engines, app stores, streaming platforms, and social media sites. Smaller companies that don't meet these size and revenue marks would be exempt.
  • The goal is to lower monthly bills for regular consumers. Currently, the fees for these programs often show up as "Universal Service" charges on landline and cell phone bills. By making big tech companies pay their share, the bill aims to reduce the financial burden on everyday Americans while ensuring there is enough money to keep rural communities connected.
  • If passed, the FCC would have 18 months to set up the new rules. The money collected would go toward a "high-cost program" that helps internet providers cover the expensive costs of building and maintaining networks in areas where there aren't many customers, making sure everyone has access to affordable, high-speed internet.
Economy FinanceTechnology DigitalInfrastructure Transportation

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
May 7, 2025Senate

Read twice and referred to the Committee on Commerce, Science, and Transportation.

May 7, 2025

Introduced in Senate

Related News

4 articles
Washington Post·7 months ago

The big problem with this aging $8 billion fund

The article examines the urgent need to modernize the FCC’s Universal Service Fund (USF). It highlights how the current system unfairly burdens seniors and low-income households while allowing 'Big Tech'—the largest beneficiaries of broadband—to avoid contributing to rural connectivity costs.

CL~
Bloomberg Law·7 months ago

Supreme Court Kept Universal Service Boondoggle on Life Support

Following a Supreme Court ruling upholding the USF, lawmakers are pushing S. 1651, the Lowering Broadband Costs for Consumers Act. The bill targets 'edge providers' like search engines and streaming services to pay into the fund, though critics argue the costs will ultimately fall on taxpayers.

CL−
GovTech·10 months ago

Broadband Legislation Update: Lowering Broadband Costs for Consumers Act

Lawmakers introduced the Lowering Broadband Costs for Consumers Act of 2025, directing the FCC to require edge and broadband providers to contribute to the USF. The goal is to reduce the financial burden on consumers and rural providers while strengthening broadband access in rural America.

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Source Information

Document Type

Congressional Bill

Official Title

A bill to require the Federal Communications Commission to ensure equitable and nondiscriminatory contributions to the mechanisms that preserve and advance universal service, to reduce the financial burden on consumers, and for other purposes.

Bill NumberS 1651
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Commerce, Science, and Transportation.

Sponsor

Cosponsors

(4)
D: 1R: 3

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.