S.1651 - Lowering Broadband Costs for Consumers Act of 2025 (119th Congress)
Summary
S.1651, the "Lowering Broadband Costs for Consumers Act of 2025," aims to reform the Universal Service Fund (USF) by expanding its contribution base to include both broadband providers and edge providers (online content and service providers). The bill directs the Federal Communications Commission (FCC) to establish rules for equitable and nondiscriminatory contributions to the USF. It also seeks to create a new mechanism within the USF's high-cost program to support broadband providers in high-cost areas.
Expected Effects
The primary effect of this bill would be to shift the financial burden of supporting universal broadband access. This shift would move it from traditional telecommunications services to broadband and edge providers. The bill also aims to ensure that broadband providers in high-cost areas receive sufficient support to offer affordable services.
Potential Benefits
- Reduced Costs for Consumers: By expanding the contribution base for the Universal Service Fund, the bill aims to lower the costs passed on to consumers for broadband services.
- Increased Broadband Access in High-Cost Areas: The new mechanism under the high-cost program will provide support for broadband providers, potentially leading to increased access in underserved areas.
- Equitable Contribution: The bill seeks to ensure that both broadband and edge providers contribute to the USF on an equitable and nondiscriminatory basis.
- Predictable Funding: The bill aims to establish specific, predictable, and sufficient mechanisms for universal service funding.
Potential Disadvantages
- Increased Costs for Edge Providers: Edge providers, including streaming services and social media platforms, may face increased costs due to the new contribution requirements, potentially leading to higher prices for consumers or reduced investment in innovation.
- Complexity and Regulatory Burden: The FCC rulemaking process could be complex and create a regulatory burden for both broadband and edge providers.
- Potential for Unintended Consequences: The definition of "edge provider" is broad and could inadvertently capture smaller businesses or startups.
- Limited Impact: The exemptions for smaller edge providers and broadband providers may limit the overall impact of the bill on lowering broadband costs.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. By regulating broadband and edge providers, the bill seeks to promote universal service and ensure affordable access to broadband, which can be considered a matter of interstate commerce. The bill does not appear to infringe on any specific individual rights or freedoms protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).