The FCC suspended most of its operations early Wednesday when federal appropriations lapsed, as expected (see 2509300060). The agency furloughed 81% of its 1,288 staff members, less than the 88% it planned for ahead of a March shutdown that was averted when Congress agreed on its now-lapsed funding extension (see 2503140069). More than 77% of NTIA’s 600 employees remain at work, in part because of spectrum funding included in the Republicans’ reconciliation package, previously known as the One Big Beautiful Bill Act (see 2507030056). The shutdown is also already affecting at least one telecom-related case in federal court, although the overall judicial system remains open for now.
FCC Chairman Brendan Carr emphasized Tuesday that he was “ready to go” with what the commission said would be a suspension of “most operations” after midnight Wednesday if Congress couldn't reach a deal on a continuing resolution to extend federal appropriations past Tuesday night, as most observers expected. Meanwhile, the Commerce Department said more than 77% of NTIA’s 600 staff will remain at work following an appropriations lapse, in part because of spectrum funding included in Republicans’ reconciliation package, previously known as the One Big Beautiful Bill Act (see 2507030056).
NTCA CEO Shirley Bloomfield warned that changes in the BEAD program could mean that many of the group’s members will sit it out though a good number are well positioned to participate. Departing next year after 25 years at NTCA's helm (see 2509170060), Bloomfield spoke with former FCC Commissioner Mike O’Rielly during a Free State Foundation webcast. “This is a tougher business than people think it is,” she said.
WTA representatives met with FCC Commissioner Olivia Trusty to discuss various concerns, including the USF and the agency's notice of inquiry on the future of Telecom Act Section 706 reports (see 2509090010), said a filing posted Friday in docket 25-233. The group also met with aides to Chairman Brendan Carr and Commissioner Anna Gomez.
FCC Commissioner Olivia Trusty assured Competitive Carriers Association members that the agency understands their need for faster buildouts and access to more spectrum. “We are working to create a regulatory environment that empowers you, the private sector, to build and innovate,” she said in written remarks for CCA's annual convention, posted Wednesday.
NTCA CEO Shirley Bloomfield said Tuesday she will retire in March. She began leading the group in July 2010. Starting at the rural communications association in 1986, Bloomfield was serving as vice president of government affairs there when she left in 2007 for jobs at Qwest and then Verizon. "This is the right time for our industry to make that change," now that USF's survival is less in doubt, she said. "Now that the debate is shifting to a new phase of challenges, it’s the perfect time ... for that next leader to take you all over the next mountain!"
Consumers’ Research and other challengers of the USF contribution factor in the 5th U.S. Circuit Court of Appeals agreed to end their current challenge there. The government and challengers said in a filing with the court that they “hereby stipulate to the dismissal of the petitions in the above proceedings, with each side to bear its own costs and fees.”
Consumers’ Research and its allies made additional arguments at the FCC for why the agency should zero out the USF contribution factor for Q4 (see 2508110021), despite the U.S. Supreme Court decision that the factor is constitutional (see 2506270054).
A handful of right-leaning groups are pressing strongly for a bipartisan congressional working group to recommend funding USF via the appropriations process as part of a potential legislative revamp of the program, but other stakeholders said they still they favor various expansions of the initiative’s contributions base. Comments to the working group were due late Monday night as part of its recently relaunched bill consultations (see 2508010051). The right-leaning groups also called for the most far-reaching changes to the program’s governance and structure, in some cases seeking to ax the high-cost fund.
As policymakers look at reforms to the USF, they need to examine why so many people who are eligible for support don’t enroll in Lifeline and other programs, experts said Monday during an event hosted by Georgetown University's Center for Business and Public Policy. The session coincided with Monday's deadline for responding to the congressional USF working group's request for comments and proposals on USF reform.