News Update - January 2025
USAC Issues Second Quarter 2025 Fund Size Projections For Universal Service Support Mechanisms
January 31, 2025 – The Universal Service Administrative Company (USAC) has filed the Federal Universal Service Support Mechanisms Fund Size Projections for the second quarter of 2025. The filing details the universal service fund’s (USF) total projected funding requirements for 2Q 2025, which includes costs that can be directly attributed to the High Cost, Low Income, Rural Health Care, and Schools and Libraries Support Mechanisms, as well as Connected Care Pilot Program costs, and projected administrative expenditures of each mechanism. All of USAC’s filings to the FCC are available here. USAC’s data shows the following total projected 4Q 2024 funding requirements for each USF support mechanism:
High Cost Support Mechanism – $1.1239 billion
Low Income Support Mechanism – $305.12 million
Rural Health Care Support Mechanism – $176.10 million
Connected Care Pilot Program – USAC collected $100 million to fund the Connected Care Pilot Program. No additional collections are required.
E-Rate Schools and Libraries Support Mechanism – $653.04 million
USAC projects a consolidated budget of $74.41 million for 2Q 2025. This breaks out to $33.11 million in direct costs for all four support mechanisms, and $41.30 million in joint and common costs which include costs associated with billing, collection, and disbursement of universal service funds. The FCC will use the of the quarterly funding requirements for the four USF Support Mechanisms, the projected administrative expenses, and the USF contribution base amount to calculate the quarterly USF contribution factor. Copies of USAC’s historical USF filings are available on its website.
FCC Chairman Brendan Carr Opens Investigation Of NPR & PBS
January 29, 2025 – FCC Chairman Brendan Carr has sent a letter to NPR and PBS member stations informing them that he has asked the FCC’s Enforcement Bureau to open an investigation regarding their programming. NPR and PBS, which are licensed as noncommercial educational broadcast stations (NCEs), distribute programming through a network of approximately 1,500 member stations. Under the Communications Act, NCE stations are prohibited from airing commercials or other promotional announcements on behalf of for-profit entities. Chairman Carr claims that “NPR and PBS broadcasts could be violating federal law by airing commercials.” Chairman Carr has directed the FCC’s Enforcement Bureau, with assistance from the FCC’s Media Bureau, “to initiate an investigation into the underwriting announcements and related policies of NPR, PBS, and their broadcast member stations.”
Presidential Memorandum M-25-13 Rescinded
January 29, 2025 – The White House Office of Management and Budget has rescinded Presidential Memorandum M-25-13. However, the freeze on agency grant, loan, and other financial assistance programs has not been lifted. White House press secretary Karoline Leavitt released the following statement:
“This is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court's injunction. The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented.”
President Trump Orders Freeze Of Federal Financial Assistance Programs – The FCC Must Review 11 Programs
January 27, 2025 – President Trump has issued a Presidential Memorandum (M-25-13) to the heads of executive departments and Federal agencies that orders them “to identify and review all Federal financial assistance programs and supporting activities consistent with the President’s policies and requirements.” Specifically, the memorandum places a temporary pause, effective on January 28, 2025, at 5:00 pm, on all Federal financial assistance programs while each agency completes “a comprehensive analysis…to identify programs, projects, and activities that may be implicated by any of the President’s executive orders.”
The memorandum states that “[n]o later than February 10, 2025, agencies shall submit to OMB detailed information on any programs, projects or activities subject to this pause. Each agency must pause: (i) issuance of new awards; (ii) disbursement of Federal funds under all open awards; and (iii) other relevant agency actions that may be implicated by the executive orders, to the extent permissible by law, until OMB has reviewed and provided guidance to your agency with respect to the information submitted.” The memorandum carves out a potential exception: “OMB may grant exceptions allowing Federal agencies to issue new awards or take other actions on a case-by-case basis.”
Accompanying the memorandum is a spreadsheet document titled “Instructions for Federal Financial Assistance Program Analysis in Support of M-25-13.” It states that [a]ll Federal agencies that provide Federal financial assistance are required by February 7, 2025 to complete the attached spreadsheet and submit it to OMB.” The spreadsheet lists each Federal agency along with its presumed assistance programs.
For the Federal Communications Commission, the spreadsheet lists the following 11 programs that must be reviewed:
Universal Service Fund High Cost
Universal Service Fund Lifeline
Universal Service Fund Schools And Libraries
Universal Service Fund Rural Health Care
COVID 19 Telehealth Program
Connected Care Pilot Program
Affordable Connectivity Program
Emergency Connectivity Fund Program
Supply Chain Reimbursement Program
Affordable Connectivity Outreach Grant Program
Cybersecurity Pilot Program
Each Federal agency, for each of its assistance programs, must submit answers to the following questions to OMB by February 7, 2025:
Please identify the email of the senior political appointee responsible for overseeing this program.
Does the program have any pending funding announcements?
Does the program have any anticipated obligations or disbursement of funds before 3/15/2025?
Does this program have any statutory requirements mandating the obligation or disbursement of funds through 3/15/2025?
Provide the estimated date of the next obligation or disbursement of funds.
Does this program provide Federal funding to non- governmental organizations supporting or providing services, either directly or indirectly, to removable or illegal aliens?
Is this program a foreign assistance program, or provide funding or support activities overseas?
Does this program provide funding that is implicated by the revocation and recission of the U.S. International Climate Finance Plan?
Does this program include activities that impose an undue burden on the identification, development, or use of domestic energy resources (including through funding under the Inflation Reducing Act of 2022; and the Infrastructure Investment and Jobs Act)?
Does this program provide funding that is implicated by the directive to end discriminatory programs, including illegal DEI and “diversity, equity, inclusion, and accessibility” (DEIA) mandates, policies, programs, preferences, and activities, under whatever name they appear, or other directives in the same EO, including those related to “environmental justice” programs or “equity-related” grants?
Does this program promote gender ideology?
Does this program promote or support in any way abortion or other related activities identified in the Hyde Amendment?
If not covered in the preceding columns, does this program support any activities that must not be supported based on executive orders issued on or after January 20, 2025 (including executive orders released following the dissemination of this spreadsheet)?
Provide additional information on program or project activities.
FCC Chairman Cancels Proposal To Ban Bulk Billing Agreements
January 27, 2025 – Federal Communications Commission (FCC) Chairman Brendan Carr has canceled a pending proposal to prohibit “bulk billing agreements” that was put forth during the previous FCC administration. Under bulk billing agreements, “a company agrees to provide service to every tenant of a building, who are then billed a prorated share of the total cost,” either by the landlord or the service provider. In March 2024, the previous FCC Chair, Jessica Rosenworcel, circulated a Notice of Proposed Rulemaking aimed at banning bulk billing agreements. However, the NPRM never received the adequate number of votes to be formally adopted and released for public comment. Chairman Carr has officially ended consideration of the proposal and removed the NPRM from the FCC’s items on circulation.
Chairman Carr Announces FCC Leadership Positions
January 24, 2025 – Federal Communications Commission (FCC) Chairman Brendan Carr has announced the appointment of FCC leadership positions. More specifically, Chairman Carr has announced the acting FCC Bureau and Office leadership, as well as the Acting General Counsel and Managing Director.
Joel Taubenblatt, Acting Chief of the Wireless Telecommunications Bureau
Trent Harkrader, Acting Chief of the Wireline Competition Bureau
Erin Boone, Acting Chief of the Media Bureau
Debra Jordan, Acting Chief of the Public Safety and Homeland Security Bureau
Jacob Lewis, Acting General Counsel
Patrick Webre, Acting Chief of the Enforcement Bureau
Eduard Bartholme, Acting Chief of the Consumer & Governmental Affairs Bureau
Mark Stephens, Managing Director
Tom Sullivan, Acting Chief of the Office of International Affairs
Ira Keltz, Acting Chief Engineer, Office of Engineering and Technology
Catherine Matraves, Acting Chief of the Office of Economics and Analytics
Katie Gorscak, Acting Director of the Office of Media Relations
President Trump Issues Regulatory Freeze Via Presidential Memorandum
January 20, 2025 – President Trump has issued a Presidential Memorandum ordering all executive departments and agencies to implement a regulatory freeze on all rules, pending their further review by a department or agency head appointed or designated by President Trump. The regulatory freeze directs executive departments and agencies to not propose or issue any rule in any manner, including by sending a rule to the Office of the Federal Register (OFR). It also directs them to immediately withdraw any rules that have been sent to the OFR but not published in the Federal Register, so that they can be reviewed and approved. The Presidential Memorandum also provides the following guidance for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect:
Consistent with applicable law and subject to the exceptions described in paragraph 1, consider postponing for 60 days from the date of this memorandum the effective date for any rules that have been published in the Federal Register, or any rules that have been issued in any manner but have not taken effect, for the purpose of reviewing any questions of fact, law, and policy that the rules may raise. During this 60-day period, where appropriate and consistent with applicable law, consider opening a comment period to allow interested parties to provide comments about issues of fact, law, and policy raised by the rules postponed under this memorandum, and consider reevaluating pending petitions involving such rules. As appropriate and consistent with applicable law, and where necessary to continue to review these questions of fact, law, and policy, consider further delaying, or publishing for notice and comment, proposed rules further delaying such rules beyond the 60-day period.
President Trump Officially Designates Brendan Carr FCC Chairman
January 20, 2025 – President Trump has officially designated Brendan Carr as Chairman of the Federal Communications Commission. Chairman Carr issued the following statement on his designation:
I am deeply grateful to President Trump and honored by his decision to designate me as Chairman of the Federal Communications Commission. I have had the privilege of working at the FCC for over a dozen years now, including serving previously as the agency’s General Counsel, and I am humbled by the opportunity to lead the FCC. The FCC has important work ahead—on issues ranging from tech and media regulation to unleashing new opportunities for jobs and growth through agency actions on spectrum, infrastructure, and the space economy. We will also advance America’s national security interests and protect consumers. I am eager to accelerate the FCC’s work on these and other fronts. I look forward to collaborating with the Trump Administration, my Commission colleagues, and the FCC’s talented staff as well as Congress to deliver great results for the American people.
Lifeline: U.S. Department Of Health And Human Services Issues 2025 Federal Poverty Guidelines
January 17, 2025 – The U.S. Department of Health and Human Services has issued the 2025 Federal poverty guidelines used to determine financial eligibility for certain governmental assistance programs. Under the FCC’s Lifeline rules, a consumer can qualify for participation in the universal service Lifeline program if the consumer’s household income is at or below 135% of the Federal poverty guidelines for a household of that size. There are separate guidelines for the 48 contiguous states and the District of Columbia, Alaska, and Hawaii.
FCC Issues Declaratory Ruling & NPRM That Are Intended To Strengthen U.S. Communications Networks Against Future Cyberattacks
January 16, 2025 – The Federal Communications Commission (FCC) has issued a Declaratory Ruling and Notice Of Proposed Rulemaking (NPRM) which are intended to strengthen U.S. communications networks against future cyberattacks. In the Declaratory Ruling, the FCC concludes that Section 105 of Communications Assistance for Law Enforcement Act (CALEA) affirmatively requires telecommunications carriers to secure their networks from unlawful access or interception of communications.
In the NPRM, the FCC proposes that nearly every type of communications service provider be required to create, update, and implement cybersecurity and supply chain risk management plans. Among other things, communications service providers’ cybersecurity and supply chain risk management plans would have to identify the cyber risks they face, the controls they use or plan to use to mitigate those risks, and how they ensure that these controls are applied effectively to their operations. The FCC proposes that every service provider submit an annual certification, signed by the provider’s CEO or senior officer responsible for the organization’s security practices, attesting that the company has created, updated, and implemented a cybersecurity and supply chain risk management plan. Comments responding to the NPRM are due on or before 30 days from the date the NPRM is published in the Federal Register. Reply comments are due within 60 days of Federal Register publication.
President-Elect Trump Announces Olivia Trusty To Serve As FCC Commissioner
January 16, 2025 – President-elect Donald Trump has announced he will nominate Olivia Trusty to serve as Commissioner of the Federal Communications Commission. Once confirmed, Olivia Trusty will fill the seat vacated by Jessica Rosenworcel, and serve as the third Republican FCC Commissioner. Ms. Trusty has previously worked as an aide to Senator Roger Wicker (R-MS) and Representative Bob Latta (R-OH), and as a staff member on various subcommittees of both the House and Senate Commerce Committees.
FCC Announces Use Of Broadband Serviceable Location Fabric For Verifying Broadband Deployment Obligations
January 10, 2025 – The FCC’s the Wireline Competition Bureau has issued a Public Notice announcing that it will use the Broadband Serviceable Location Fabric (Fabric) “for generally verifying compliance with high-cost program deployment obligations and for adjusting the location obligations for certain high-cost support mechanisms.” The Bureau further explains its decision as follows:
Specifically, we adopt processes and policies for implementing the RDOF location readjustment process prior to the six-year RDOF service milestone that will maximize the number of consumers served through RDOF support,1 and also leverage existing Commission processes to implement streamlined location adjustment procedures for the Bringing Puerto Rico Together (PR) Fund, the Connect USVI Fund, Alternative Connect America Cost Model (A-CAM) I, Revised A-CAM I, and A-CAM II carriers. Our decision to rely on the Fabric for these purposes is an important step towards improving accuracy, oversight, and accountability for our high-cost support mechanisms.
FCC Releases Final Agenda For Open Meeting On January 15, 2025
January 9, 2025 – The Federal Communications Commission has released the final agenda for the FCC’s open meeting on Wednesday, January 15, 2025, at 10:30 am. The agenda consists of the following panel presentations led by senior FCC staff which will summarize the work their teams have done over the last four years:
Panel One – Consumer & Governmental Affairs, Office of Economics and Analytics, Office of International Affairs and Broadband Data Task Force – The Commission will hear presentations on the agency’s work on expanding connectivity and access to modern communications.
Panel Two – Wireline Competition, Office of Workplace Diversity, Office of Communications Business Opportunities and Connect2Health/Office of General Counsel – The Commission will hear presentations on the agency’s work on making communications more just for more people in more places.
Panel Three – Public Safety and Homeland Security, Enforcement, Media, Wireline Competition, Consumer & Governmental Affairs, Office of Engineering and Technology and Office of International Affairs – The Commission will hear presentations on the agency’s work on national security, public safety, and protecting consumers.
Panel Four – Space, Wireless Telecommunications, Office of Engineering and Technology, Office of Managing Director and Office of Economics and Analytics – The Commission will hear presentations on the agency’s work on the future of communications.
FCC Approves New Robocall Mitigation Database Filing Requirements & Procedures
January 8, 2025 – The Federal Communications Commission (FCC) has approved a Report And Order containing new Robocall Mitigation Database filing requirements and procedures. Below is a summary of the new requirements:
All entities are required to update any information submitted to CORES within 10 business days of any change to that information.
The Report And Order establishes a base forfeiture of $10,000 for each violation for filers that submit false or inaccurate information to the Robocall Mitigation Database, and establishes a base forfeiture of $1,000 for failure to update information that has changed in the Robocall Mitigation Database within 10 business days.
The Report And Order directs the Wireline Competition Bureau to establish a dedicated reporting mechanism that will allow stakeholders to notify the FCC of deficient Robocall Mitigation Database filings.
To assist filers with their robocall mitigation compliance obligations, the Report And Order directs the Wireline Competition Bureau to issue additional guidance, educational materials, and “best practices” for filing in the Robocall Mitigation Database.
In the Report And Order, the FCC concludes that Robocall Mitigation Database filings are “applications” within the meaning of Section 8 of the Communications Act, and therefore adopts an application fee for initial submissions, and annually thereafter. The FCC has set a $100 application processing fee for initial Robocall Mitigation Database submissions and for annual certifications.
To better secure the Robocall Mitigation Database, the Report And Order directs the Wireline Competition Bureau and OMD to develop a two-factor (or more) authentication solution for accessing the database.
Disney Enters Into Agreement With FuboTV
January 6, 2025 – Disney has entered into an agreement with FuboTV, which will result in Fubo combining with Hulu + Live TV and Disney owning 70% of Fubo. Both Hulu + Live TV and Fubo will continue to be available to consumers as separate streaming apps. As part of the agreement, Fubo has terminated its lawsuit against Disney, Fox, and Warner Brothers Discovery concerning the Venu sports joint venture. The Venu joint venture was to be owned equally by Disney, Fox, and Warner Brothers, with each owner agreeing to license sports content to Venu without also requiring Venue to license or distribute other non-sports content. Fubo had alleged the Venu joint venture violated antitrust laws.
Sixth Circuit Strikes Down FCC Net Neutrality Rules
January 2, 2025 – A three-judge panel of the U.S. Court of Appeals for the Sixth Circuit has issued an opinion overturning the Federal Communications Commission’s (FCC) Safeguarding and Securing the Open Internet Order.
In that Order, the FCC reclassified broadband Internet access service (BIAS) as a telecommunications service under Title II of the Communications Act of 1934, and imposed net neutrality rules on broadband providers (i.e., no blocking, throttling, or paid prioritization, a general conduct standard, and enhanced transparency). Multiple entities filed petitions for review in various federal circuits claiming the Order exceeded the FCC’s authority and is arbitrary, capricious, and an abuse of discretion.
The petitions for review were ultimately consolidated in the Sixth Circuit, and considered by the three judges without any Chevron deference to the FCC:
Today we consider the latest FCC order, issued in 2024, which resurrected the FCC’s heavy handed regulatory regime. Under the present Safeguarding and Securing the Open Internet Order, Broadband Internet Service Providers are again deemed to offer a “telecommunications service” under Title II and therefore must abide by net-neutrality principles. But unlike past challenges that the D.C. Circuit considered under Chevron, we no longer afford deference to the FCC’s reading of the statute. Instead, our task is to determine “the best reading of the statute” in the first instance.
In their opinion, the three-judge panel concluded their best reading of the statute establishes that the FCC’s interpretation is wrong, and that the agency has overstepped its bounds:
Using “the traditional tools of statutory construction,” we hold that Broadband Internet Service Providers offer only an “information service” under 47 U.S.C. § 153(24), and therefore, the FCC lacks the statutory authority to impose its desired net-neutrality policies through “telecommunications service” provision of the Communications Act. Nor does the Act permit the FCC to classify mobile broadband—a subset of broadband Internet services—as a “commercial mobile service” under Title III of the Act (and then similarly impose net-neutrality restrictions on those services).