Broadband Built to Last Coalition

What is the Universal Service Fund?

The idea that all Americans should have reliable access to communications services at a reasonable cost has been a national objective for over a century. Today, the federal Universal Service Fund (USF) enables providers to deliver voice and broadband services to rural users that are comparable in price and quality to those available in urban areas, makes services more affordable for low-income families, and supports critical connections for schools, libraries and healthcare facilities in rural communities. 

The four programs that constitute the USF – High Cost, Rural Healthcare, E-Rate and Lifeline – have made substantial strides in pursuing the goal of universal service. With updates in recent years to support our nation’s broadband future, these programs help ensure that rural and low-income Americans, classrooms, libraries and rural healthcare facilities across the nation have access to more affordable and reliable connectivity.

Why is the Universal Service Fund Important to Rural Americans?

Without USF support, it is difficult to make a business case to invest in many rural areas, to sustain networks once they are built, or to keep service rates affordable. According to a March 2025 survey of nearly 270 NTCA members across 44 states, the loss of USF support could be catastrophic for rural consumers, efforts to keep investing in broadband deployment and the viability of existing rural broadband networks:

Respondents reported receiving an average of more than $70 per month per broadband subscriber in USF support to help recover their invested capital, repay loans and cover operating expenses. If this support were lost, it could cause rural consumers’ rates to be more than double what the average urban consumer pays for comparable services.
Nearly two-thirds of respondents said they would need to cancel network deployment projects in 2026 and 2027, equaling nearly $1.6 billion in total investment and representing nearly 85% of planned investment for the next few years – depriving unserved and underserved rural Americans better access to broadband.
And 67% of respondents said they have outstanding debt for prior broadband network deployments – a significant portion of which includes loans from the U.S. Department of Agriculture (USDA) – and over 60% of this debt could be at risk of default in the next several years if USF were eliminated.