ICYMI: Will Broadband Subsidies Survive a Trump Administration?

Posted in Lunch Nuggets News  |  Tagged , ,

In March, the Center for Business and Public Policy (CBPP) at Georgetown University’s McDonough School of Business hosted a webinar featuring Michael Santorelli, director of the Advanced Communications Law and Policy Institute at New York Law School, and Roslyn Layton, executive vice president at Strand Consult. 

The panel focused on the future of the Universal Service Fund (USF) and the Broadband Equity, Access, and Deployment (BEAD) program under the Trump Administration amid continued judicial review.

Key Takeaways

The Current Funding Model for USF Is Unsustainable

Both speakers agreed the USF’s financing mechanism is not economically viable in the long term. They highlighted its disproportionate impact on low-income seniors living on fixed incomes.

Proposal to Broaden the Contributor Base

In her study, “Ending Big Tech’s Free Ride on USF: Reforming the Universal Service Fund to Serve Consumers and America,” Layton recommends expanding the USF’s funding base to include technology companies. According to her findings, “Big Tech” could fund USF at a rate of less than 1% of their advertising revenues.

The Case for Tech Industry Inclusion

Layton argued that because tech companies rely on internet access to reach users – the very connectivity USF supports – they should contribute to sustaining the system.

Challenges with BEAD Program Implementation

Santorelli’s recent publication, How to Free BEAD from Its Bureaucratic Shackles, critiques the Biden Administration’s implementation of BEAD. He contends the National Telecommunications and Information Administration introduced programmatic obligations not included in the original legislation, creating delays in grant processing and distribution.

Slow State-Level Rollout

Only three states have launched BEAD programs to date. Thirty-four are in the application and review phase, while 13 are still preparing to begin. The future of these efforts under a new administration remains uncertain.

Shared Focus on Pragmatic Deployment

Both speakers emphasized the importance of centering future broadband expansion efforts on the most practical, scalable solutions regardless of political leadership.

Watch the full conversation: