Possible Changes to Universal Service Fund

I am writing to inform you of a significant ruling by the U.S. Court of Appeals for the Fifth Circuit. The court declared that the Universal Service Contribution (USF) mechanism violates the Legislative Vesting Clause of the U.S. Constitution. This decision has serious implications for programs many of our members rely on, including the Healthcare Connect Fund (HCF) and the E-rate program.

For those using HCF and E-rate, this ruling threatens vital funding for affordable broadband services essential for telemedicine, education, and other initiatives. The potential disruption of these funds could jeopardize education and healthcare services, impacting our members by an estimated $3 million.

This ruling also affects Research & Education Networks (RENs) nationwide, including KanREN. These networks depend on USF support for developing high-capacity network services for academic and research institutions. Without USF contributions, growth and innovation in these networks could be severely hampered.

In conclusion, the Fifth Circuit's decision could have far-reaching consequences for KanREN members and RENs nationwide. The decision challenges federal support for universal service, which has been crucial in bridging the digital divide. The potential dismantling of the USF threatens to widen this divide, leaving rural and low-income communities further behind.

Please stay informed about developments, and ensure that others at your institution, especially those who might be surprised by the loss of funding or who can advocate on this issue, are also informed. KanREN supports the continuation of the USF program, with contributions spread more widely among broadband and telecommunications services. It is crucial that we advocate for sustainable solutions to support the connectivity needs of educational and healthcare institutions.

Sincerely,

-Chris

Christopher G. Crook

Executive Director

KanREN Inc.