This bill requires the FCC to establish a vetting process for high-cost universal service fund applicants to ensure they have the technical, financial, and operational capabilities to deploy broadband as required.
Erin Houchin
Representative
IN-9
The "Rural Broadband Protection Act of 2025" mandates a thorough vetting process for applicants seeking high-cost universal service funds for broadband deployment. This process ensures that only qualified applicants with the technical, financial, and operational capabilities receive funding. The Act directs the FCC to establish clear standards and penalties for non-compliance, enhancing accountability in the use of universal service funds.
Bill Mandates Tougher Checks for Rural Broadband Builders, Sets $9K+ Default Fines
This proposed legislation, the Rural Broadband Protection Act of 2025, aims to tighten the reins on companies applying for federal dollars to build internet infrastructure in hard-to-reach rural areas. It amends the Communications Act, specifically Section 254 which deals with the Universal Service Fund – the pot of money used for these projects. The core idea? Make sure companies asking for cash through programs like the high-cost fund actually have the skills, money, and plan to get the job done before they get the green light.
Raising the Bar for Broadband Builders
The bill directs the Federal Communications Commission (FCC) to set up a new vetting process within 180 days. Think of it like a background check for companies wanting to deploy broadband using this specific 'covered funding'. Applicants will need to prove they've got the technical know-how (can they actually build a network?), the financial stability (do they have the cash flow?), and the operational capability (can they run the service long-term?). They'll also need a 'reasonable business plan' and a clean track record regarding compliance with past government broadband projects. The FCC will measure applicants against established standards, including those used for mapping existing broadband availability (the Digital Opportunity Data Collection).
Steeper Penalties for Early Bailouts
A key change involves penalties. If a company gets approved for funding but then backs out before starting the work (a 'pre-authorization default'), this bill mandates a minimum penalty of $9,000 per violation. Furthermore, the total base fine can't be less than 30% of the total funding the company was approved for, unless the FCC specifically justifies a lower amount. This aims to add more financial sting for companies that make commitments they don't keep, right from the get-go.
The Real-World Ripple Effect
So, what does this mean for folks waiting for better internet or the companies looking to build it? On one hand, this could mean fewer situations where federal money goes to companies that ultimately can't deliver, potentially leading to more reliable project completion in rural communities. It's about adding accountability upfront. On the other hand, these stricter requirements could be tougher for smaller, newer, or community-based providers to meet compared to large, established telecom giants. There's a potential risk that while aiming for quality control, the process might inadvertently slow down deployment or reduce the pool of applicants, especially those potentially offering innovative or localized solutions. The challenge for the FCC will be crafting rules that ensure competence without creating insurmountable barriers.