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Broadband in Jeopardy: The Looming Crisis for Schools, Hospitals, and Libraries 

This article was originally published on LinkedIn and was reprinted with permission. 

On July 24, 2024, the U.S. Circuit Court of Appeals for the Fifth Circuit ruled that the Federal Communications Commission’s (FCC) Universal Service Fund (USF) contribution mechanism is unconstitutional. This decision questions the foundation of a $9 billion a year program that provides essential telecommunication services for schools, libraries, and rural healthcare facilities, putting our nation’s most vulnerable communities at risk.  

Background on the Situation  

The USF was created to ensure all Americans have access to essential telecommunications services, regardless of their location. Funded by telecommunications providers, the USF supports:  

  • E-rate: Internet for schools and libraries. 
  • Lifeline: Internet for low-income families. 
  • Rural Health Care: Broadband for rural healthcare facilities. 
  • Connect America Fund: Broadband for rural areas. 

Immediate Impact and Legal Challenges  

For now, the E-rate program remains in effect, ensuring schools and libraries receive federal funds for the 2024-25 school year. However, if the decision stands, it could cut off broadband access for millions of students, educators, and library patrons. The FCC plans to appeal the ruling to the U.S. Supreme Court.  

  • FCC Chairwoman Jessica Rosenworcel called the decision “misguided and wrong,” stating it “reflects a lack of understanding of the statutory scheme that helped create the world’s best and most far-reaching communications network.” She vowed to “pursue all available avenues for review.”  
  • FCC Commissioner Geoffrey Starks described the ruling as “a monumental blow” to efforts to close the digital divide, saying it “will particularly harm Americans that rely on USF for connectivity including vulnerable households, those that live in rural areas, and our youngest learners” 
  • FCC Commissioner Anna M. Gomez noted the decision “threatens our ability to close the digital divide domestically and our global economic leadership.” 

Impact on Schools and Libraries  

  • Digital Divide: The loss of USF support could exacerbate the digital divide, especially in rural and low-income areas. 
  • Educational Disparities: Without USF, students in underserved communities would struggle to access online learning tools and resources. 
  • E-rate Program: This program has been crucial for providing equitable access to digital resources, enabling schools and libraries to offer free internet access and digital literacy programs. 

Impact on Rural Hospitals and Healthcare  

  • Telehealth Services: Rural hospitals and clinics rely on USF to support telehealth services. The loss of funding could reduce the availability of telehealth, forcing patients to travel long distances for medical care. 
  • Healthcare Infrastructure: USF supports broadband infrastructure necessary for modern healthcare services, including electronic health records (EHRs) and telemedicine. The loss could deteriorate healthcare infrastructure in rural areas. 

Impact on Communities  

  • Economic Development: Broadband access is vital for economic development. Losing USF could hinder efforts to attract businesses, support remote work, and foster economic growth in rural areas. 
  • Public Services: Libraries serve as critical access points for internet services. The loss of funding could limit their ability to provide free internet access and digital literacy programs. 
  • Public Safety: Reliable communication networks are crucial for emergency response and disaster management. The loss of USF could compromise the ability of rural communities to maintain robust communication networks. 

Legal and Policy Responses  

The ruling introduces significant legal and policy uncertainty. It contradicts decisions from other circuit courts, potentially leading to prolonged legal battles. The FCC is likely to appeal the ruling to the U.S. Supreme Court. Given that universal service is a core mandate of the Communications Act of 1934, the FCC may request a stay to continue administering the program.  

Conclusion  

The loss of Universal Service Funds would have far-reaching negative impacts on education, healthcare, and economic development in rural and underserved communities. It is crucial for stakeholders, including policymakers, educators, healthcare providers, and community leaders, to address these challenges to ensure that all Americans have access to essential communication services.  

Call to Action: Public officials, school systems, school communities, and stakeholder organizations must act now to safeguard the future of our nation’s most vulnerable populations and ensure that every American has the opportunity to thrive in an increasingly digital world.  


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