FCC Must Rework Internet Funding: Big Tech Streaming and Social Media Platforms Now Required to Contribute to Universal Service Fund

The Lowering Broadband Costs for Consumers Act of 2025 is all about modernizing how we pay for the Universal Service Fund (USF)—the pot of money that helps ensure everyone, even in high-cost, rural areas, can get phone and internet service. Right now, that fund is mostly supported by fees tacked onto your phone and internet bills. This bill changes who pays the bill, shifting a major chunk of the financial burden from traditional internet providers onto the shoulders of the biggest online content and service companies.

The Big Shift: Making Edge Providers Chip In

Within 18 months, the FCC must rewrite the rules so that both broadband providers and what the bill calls “Edge providers” start contributing to the USF on an “equitable and nondiscriminatory basis” (SEC. 2). What exactly is an “Edge provider”? Think of the biggest players in online content: streaming services, social media platforms, search engines, and massive e-commerce sites. Essentially, the companies that rely on those broadband pipes to deliver their services are now expected to help pay for the pipes themselves. This is a huge policy move, recognizing that the content we consume is just as dependent on universal internet access as the access itself.

Who Gets to Skip the Fee?

Not every website or online service will be writing a check. The bill carves out two important exceptions. First, small players get a pass: an Edge provider is exempt if they transmitted less than 3% of the total U.S. broadband data and earned less than $5 billion in U.S. revenue last year (SEC. 2). That $5 billion revenue threshold is pretty high, meaning this new contribution requirement is squarely aimed at the true giants of the internet economy. Second, there’s a “de minimis” exception, meaning if your expected contribution is negligible, you won't have to contribute at all. For consumers, the big question is whether these massive companies will absorb this new operational cost or pass it along through slightly higher subscription fees or service costs.

Bolstering Service in High-Cost Areas

Beyond shifting who funds the USF, the bill also aims to make sure that money is spent effectively in the hardest-to-serve places. The FCC is mandated to create a new, predictable support system specifically for broadband providers serving high-cost areas (SEC. 2). This funding is designed to cover the gap between what it actually costs to run fiber or cable out to remote locations and what customers can reasonably be charged. This is crucial for people living in rural areas or places where the population density just doesn't make service profitable on its own. The catch is that the FCC must ensure only one eligible provider per area receives this specific high-cost support, aiming to prevent duplication and maximize coverage.

What This Means for Your Wallet and Your Internet

This legislation is a clear attempt to modernize the USF funding mechanism, which has historically relied on fees from services like landlines that are rapidly becoming obsolete. The potential benefit is stabilizing the fund and maybe, just maybe, reducing the fees currently paid by traditional broadband customers. However, the real-world impact hinges on how the FCC defines “equitable” contributions and how the newly required Edge providers react. If you stream a lot of video or use major social platforms, you might see a small increase in your monthly subscription costs as those companies adjust to this new mandatory contribution. The bill gives the FCC significant power to establish these new rules, which will be the real battleground over the next year and a half, determining who pays how much to keep America connected.