Lowering Broadband Costs for Consumers Act of 2025
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.
Stalled
No legislative action in over 90 days.
↔Companion bill: House Bill Would Make Big Tech Help Fund Universal Broadband AccessLegislative Progress
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.
Impact Analysis
Personal Impact
Small edge providers and broadband companies are explicitly exempted if they transmitted less than 3% of U.S. broadband data and earned under $5 billion in revenue. This protects smaller tech firms and ISPs from new fees. However, small businesses that rely heavily on large tech platforms (like cloud services or e-commerce) could see costs passed down to them indirectly if big tech companies raise prices to cover their new contributions.
Milestones
Read twice and referred to the Committee on Commerce, Science, and Transportation.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articlesThe 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.
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.
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.
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.
Data Sources
Sponsor
Cosponsors
(5)Analysis generated by AI. Always verify with official sources.