Lowering Broadband Costs for Consumers Act of 2025
The Lowering Broadband Costs for Consumers Act of 2025 seeks to reduce broadband costs by reforming the way the Universal Service Fund (USF) is funded. The bill would require the FCC to expand who pays into the USF—adding broadband providers and edge providers (such as platforms, search engines, streaming services, cloud operators, social networks, app stores, etc.)—and to ensure these contributions are equitable and nondiscriminatory. It directs the FCC to create a new, specific mechanism under the high-cost portion of USF to support broadband providers in high-cost areas, with the aim of keeping end-user rates affordable. The Act also sets rules to limit how many carriers can receive certain high-cost support in a given area and provides enforcement authority to the FCC. In short, the bill attempts to lower consumer broadband costs by broadening the funding base for universal service and by creating targeted support for broadband providers in high-cost areas, while establishing safeguards and exemptions for smaller edge providers and ensuring fair administration.
Key Points
- 1Expands USF contributions: broadband providers and edge providers must contribute on an equitable, nondiscriminatory basis to USF mechanisms designed to preserve and advance universal service.
- 2Initial and ongoing rulemaking: within 18 months after enactment, the FCC must complete a rulemaking to reform the USF contribution base; the Commission can revise rules over time to maintain equitable contributions.
- 3Exemptions for edge and broadband providers: edge providers that transmit less than 3% of U.S. broadband data in the most recent year and earned less than $5 billion in U.S. revenue, or providers where contributions would be de minimis, may be exempt from contributions.
- 4New high-cost support mechanism: the FCC must adopt a new mechanism under the high-cost program to provide specific, predictable, and sufficient support to eligible telecommunications carriers (ETCs) for broadband-related expenses not recovered from end-user rates or other USF mechanisms.
- 5One-ETC-per-area cap: no more than one ETC in a given area may receive support from the new high-cost mechanism created by this rulemaking.
- 6Enforcement and scope: the FCC would enforce the Act as if its provisions were part of the Communications Act, with penalties and immunities as provided by that law.
- 7Rule construction: the Act does not grant new authority over broadband providers, nor new authority over edge providers beyond what is described.