In event of adverse ruling, Congress must move swiftly to preserve critical programs that keep rural communities connected
More than 54 million students, 7 million low-income Americans, 132,000 schools and libraries, 16,000 rural health care providers and thousands of rural communities across the U.S. depend every day on a lesser known but vital source of support for affordable telephone and internet access: the Universal Service Fund.
For more than 30 years, the USF has helped bridge connectivity gaps, particularly in remote and rural areas. Now, its future hangs in the balance as the Supreme Court prepares to rule on the fund’s constitutionality. At stake is the stability of a long-standing, digital lifeline for millions of Americans.
“It would be absolutely devastating really for the entire country. This is an existential issue. If the fund goes away it could be catastrophic,” Tim Donovan, President and CEO of the Competitive Carriers Association, which advocates for communications service providers nationwide, said in a recent episode of KACC advisor and former FCC commissioner Mike O’Rielly’s podcast, “TMT with Mike O’Rielly”. “This wouldn’t be a gradual decline. It would be a cash flow crisis. Some carriers wouldn’t be able to make their next payroll. Companies could even go under.”
In the event of an adverse decision, the USF could cease to operate in a matter of weeks — disconnecting rural communities, as well as hospitals, schools, and libraries nationwide, from essential communication services.
But that’s not all that’s at risk. Many rural carriers operate towers in areas that are not commercially viable but are critical for public safety and emergency response. Without USF support, those towers would go dark.
“The loss of those towers wouldn’t just hurt the customers of that rural carrier. It would reduce coverage for every American who roams onto that network while traveling,” Donovan said.
That includes families taking road trips to national parks or rural destinations who are unaware of the impact USF has on their travels.
“Most people don’t realize how often they use rural networks — driving through Wyoming, Montana, Kansas — areas where national carriers don’t have service,” Donovan said. “These rural networks power that connectivity, including for emergency services. That would be lost.”
The consequences don’t end there. The potential fallout could send shockwaves through multiple sectors — from defense and aviation to technology and rural health care — all of which rely on reliable, affordable broadband to function.
“It’s important to remember that these programs help bring broadband into areas that then support other vital infrastructure — think air traffic controllers or defense institutions that rely on broadband connectivity in rural communities,” Donovan said. “Plus, artificial intelligence doesn’t just live in urban centers. Because of power and water needs, rural areas are becoming attractive places to base AI development. That would all be at risk.”
The threat also goes beyond what could happen in just the next few months. Without swift action, the effects could be felt for years.
“Think of all the industries that rely on telecom — agriculture, education, commerce,” Donovan said. “Cutting off rural America would reverse years of progress in areas like precision agriculture and remote learning. Those gains depend on consistent, supported connectivity.”
Still, Donovan remains cautiously optimistic not only because of the strong legal arguments for the program’s constitutionality but also because of the profound economic and societal impacts USF has on all Americans as well as the awareness in Congress of what’s at stake.
“In a worst-case scenario, Congress is ready to act and has begun taking steps toward that,” he said. “A lot depends on how the court rules and whether it gives Congress time to act. But the guiding star has to be preserving the program.”