What This Bill Does
This bill requires the Federal Communications Commission (a government agency that oversees communications) to create a vetting process (screening and approval system) for companies that want to receive funding from the high-cost universal service program. The program provides money to help deploy broadband networks in rural and expensive-to-serve areas.
Who It Affects
Companies that apply for high-cost universal service program funding. The Federal Communications Commission. Communities that receive broadband service through this funding program.
Key Provisions
- The Federal Communications Commission must start a rulemaking proceeding (official process to create new rules) within 180 days to establish the vetting process for funding applicants. (Sec. 2, paragraph 2)
- Companies applying for funding must submit a detailed proposal showing they have the technical, financial and operational abilities to build and operate the network as promised. (Sec. 2, paragraph 3(B))
- The Commission must evaluate each proposal against established technical and financial standards and check the company's history of following rules in other government broadband programs. (Sec. 2, paragraph 3(C))
- The Commission must set penalties of at least $9,000 per violation for companies that fail to meet their commitments before receiving authorization, and these penalties must be at least 30 percent of the company's total funding unless the Commission proves lower penalties are necessary. (Sec. 2, paragraph 3(D))
What Changes
The Federal Communications Commission will establish new rules requiring companies to prove their qualifications before receiving new high-cost universal service funding. Companies must now include detailed proposals with their applications, and the Commission will evaluate them using specific technical and financial standards.
Important Definitions
- Covered funding: any new high-cost universal service program funding, including money through competitive bidding processes, for building a broadband network and providing services over that network.
- New covered funding award: funding given based on an application submitted after the Commission creates the new vetting rules.
118TH CONGRESS
2D SESSION
S. 275
AN ACT
To require the Federal Communications Commission to es-
tablish a vetting process for prospective applicants for
high-cost universal service program funding.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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† S 275 ES
SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Rural Broadband Pro-
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tection Act of 2024’’.
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SEC. 2. VETTING PROCESS FOR PROSPECTIVE HIGH-COST
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UNIVERSAL SERVICE FUND APPLICANTS.
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Section 254 of the Communications Act of 1934 (47
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U.S.C. 254) is amended by adding at the end the fol-
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lowing:
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‘‘(m) VETTING OF HIGH-COST FUND RECIPIENTS.—
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‘‘(1) DEFINITIONS.—In this subsection—
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‘‘(A) the term ‘covered funding’ means any
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new offer of high-cost universal service program
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funding, including funding provided through a
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reverse competitive bidding mechanism provided
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under this section, for the deployment of a
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broadband-capable network and the provision of
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supported services over the network; and
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‘‘(B) the term ‘new covered funding award’
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means an award of covered funding that is
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made based on an application submitted to the
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Commission on or after the date on which rules
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are promulgated under paragraph (2).
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‘‘(2) COMMISSION
RULEMAKING.—Not later
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than 180 days after the date of enactment of this
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subsection, the Commission shall initiate a rule-
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making proceeding to establish a vetting process for
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† S 275 ES
applicants for, and other recipients of, a new covered
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funding award.
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‘‘(3) CONTENTS.—
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‘‘(A) IN GENERAL.—In promulgating rules
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under paragraph (2), the Commission shall pro-
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vide that, consistent with principles of tech-
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nology neutrality, the Commission will only
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award covered funding to applicants that can
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demonstrate that they meet the qualifications in
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subparagraph (B).
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‘‘(B) QUALIFICATIONS
DESCRIBED.—An
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applicant for a new covered funding award shall
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include in the initial application a proposal con-
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taining sufficient detail and documentation for
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the Commission to ascertain that the applicant
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possesses the technical, financial, and oper-
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ational capabilities, and has a reasonable busi-
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ness plan, to deploy the proposed network and
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deliver services with the relevant performance
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characteristics and requirements defined by the
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Commission and as pledged by the applicant.
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‘‘(C) EVALUATION
OF
PROPOSAL.—The
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Commission shall evaluate a proposal described
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in subparagraph (B) against—
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† S 275 ES
‘‘(i) reasonable and well-established
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technical, financial, and operational stand-
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ards, including the technical standards
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adopted by the Commission in orders of
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the Commission relating to Establishing
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the Digital Opportunity Data Collection
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(WC Docket No. 19–195) (or orders of the
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Commission relating to modernizing any
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successor collection) for purposes of enti-
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ties that must report broadband avail-
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ability coverage; and
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‘‘(ii) the applicant’s history of com-
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plying with requirements in Commission
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and other government broadband deploy-
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ment funding programs.
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‘‘(D) PENALTIES FOR PRE-AUTHORIZATION
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DEFAULTS.—In adopting rules for any new cov-
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ered funding award, the Commission shall set a
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penalty for pre-authorization defaults of at least
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$9,000 per violation and may not limit the base
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forfeiture to an amount less than 30 percent of
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the applicant’s total support, unless the Com-
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† S 275 ES
mission demonstrates the need for lower pen-
1
alties in a particular instance.’’.
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Passed the Senate September 25, 2024.
Attest:
Secretary.
118TH CONGRESS
2D SESSION
S. 275
AN ACT
To require the Federal Communications Commis-
sion to establish a vetting process for prospective
applicants for high-cost universal service program
funding.