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1 1 (January 28, 2021)

handle is hein.crs/govebmm0001 and id is 1 raw text is: Congressional Research Service January 28, 2021 Federal Universal Service Fund and Other Selected Federal Broadband Programs: A Primer Introduction Efforts to deploy voice telephone service throughout the United States began almost 100 years ago. Starting in the 1990s, these efforts shifted toward the deployment of broadband internet service to homes and businesses and the provision of infrastructure to support applications such as telehealth and distance learning. As a result of the Coronavirus Disease 2019 (COVID-19) pandemic, Congress created and funded new programs to accelerate broadband deployment and adoption in minority communities, on Tribal lands, and among qualifying households. Enabling telehealth is one major focus of these programs. Federal Communications Commission The Universal Service Fund (USF) is intended to ensure that telecommunications services, including broadband, are available and affordable throughout the country. Federal Communications Commission (FCC) programs supported by the USF-the High-Cost Program, the Connect America Fund, the Lifeline Program, the Rural Health Care Program, and the Schools and Libraries Program-are funded by fees on telecommunications carriers, not through regular appropriations. The FCC sets the regulatory and fee structures for these programs, but the Universal Service Administration Company, an independent not-for-profit corporation designated by the FCC to run USF programs, manages contributions and disburses funds. High-Cost Program The High-Cost Program has historically provided support to qualifying telephone companies serving high-cost areas (such as rural communities) with the goal of making voice service affordable there. Connect America Fund The High-Cost Program is being phased out and replaced by the Connect America Fund (CAF), which supports the provision of affordable fixed and mobile voice and broadband services in high-cost areas. In 2018, the CAF allocated approximately $1.5 billion to deploy networks serving more than 700,000 unserved rural homes and businesses in 45 states. The Rural Digital Opportunity Fund (RDOF) is a program initiated by the FCC under the Connect America Fund. Through the RDOF, the FCC plans to commit $20.4 billion to bring high-speed fixed broadband service to rural homes and small businesses in two phases. In December 2020, the FCC announced Phase I auction results, in which 180 bidders won $9.2 billion to deploy high-speed broadband to over 5.2 million unserved homes and businesses. The Phase II auction will be able to draw on a budget of up to $11.2 billion, targeting partially served areas as well as the few unserved areas that did not receive Phase I funding. The timeframe for the Phase II auction has not yet been determined by the FCC and is dependent on broadband maps that are to be developed under the Broadband DATA Act (P.L. 116-130). Lifeline Program The Lifeline Program helps low-income customers initiate telephone service and pay their monthly bills. The program offers up to $9.25 per month towards telephone or internet services for eligible subscribers (up to $34.25 for those living on Tribal lands). Rural Health Care Program The Rural Health Care Program allows rural health care providers to pay rates for internet and telecommunications services similar to those of their urban counterparts, making telehealth services more affordable in rural areas. The program's funding cap for 2020 was initially set at $604.76 million, but an additional $197.98 million in unused funds from prior years was released in June 2020, bringing the total to $802.74 million-the most in the program's history. This program has two permanent parts, the Healthcare Connect Program and the Telecommunications Program, as well as the fixed-term Connected Care Pilot Program. The Healthcare Connect Program (established in 2012) supports broadband connectivity to eligible health care providers and encourages the establishment of state and regional provider networks. Under this program, eligible rural health care providers (and eligible non- rural health care providers that are members of a consortium with more than 50% rural health care providers) receive a 65% discount on internet services. The Telecommunications Program (established in 1997) subsidizes the difference between urban and rural rates for telecommunications services. It is not used for broadband services. The Connected Care Pilot Program will provide up to $100 million over three years for selected pilot projects. This funding will cover 85% of the eligible costs of broadband connectivity, certain network equipment, and information services to provide connected health care services to the intended patient population, with a strong preference for projects to benefit low-income Americans and veterans. On January 15, 2021, the FCC announced 23 initial project awards to 14 applicants. ittps://Crsreports.congress.gt

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