Following the United States Fifth Circuit Court of Appeals' decision to strike down the FCC’s Universal Service Fund, the Information Technology and Innovation Foundation (ITIF), a prominent think tank for science and technology policy, issued a statement from Joe Kane, ITIF’s director of broadband and spectrum policy.
Kane remarked, "The Fifth Circuit’s holding that the FCC’s Universal Service Fund is unconstitutional throws federal broadband policy into an uncertain future. But while it may cause some chaos, this ruling is also an opportunity for policymakers to refocus broadband funding in ways that will do the most good for the most people."
Kane emphasized that policymakers have long recognized the need for reform within the USF. He pointed out that its previous trajectory was unsustainable due to the increasing tax on consumers’ phone bills, known as the “contribution factor.” With the court's ruling deeming this path legally unsound, Kane argued there is now greater justification for Congress to directly appropriate funding for critical broadband programs such as ACP, while allowing outdated and redundant ones to be phased out.
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