Qrougress of t11e Unite~ §fates lnasl1ington, D~ 20515 The Honorable Tom Wheeler Chairman Federal Communications Commission 44 5 12'11 Street S W Washington. DC 20554 Dear Chairman Wheeler: January 30. 2014 The Universal Service Fund, administered by the Universal Service Administrative Company with Federal Communications Commission (FCC) oversight, provides support through four mechanisms: I ligh Cost, Low Income, Rural Health Care, and Schools and Libraries. In the past several months , there have been multiple proposals for reforms to the Schools and Libraries program, also known as E-rate, from members of Congress, the Administration, and the FCC itself. Many of these proposals could increase the size and cost of theE-rate program, and even the overall Universal Service Fund, which is ultimately paid for by Americans via their telephone bills. The contribution factor for the overall fund has already jumped from 9.5 percent in the first quarter of 2009 to 16.4 percent in the first quarter of 2014, an increase that is passed along to consumers. This growth is indicative of the need for a thorough and critical examination of any proposals that have the potential to further increase the bill for American families. In these tiscal times, it is more important than ever to ensure that money is spent wisely and that these funds are allocated appropriately and eflectively. This is why we urge you to refer evaluation of any E-rate expansion proposals to the federal-State Joint Board on Universal Service. The Joint Board was established in 1996 to make recommendations to implement the universal service provisions of the Telecommunications Act of 1996. The Board, composed of FCC Commissioners, State Utility Commissioners, and a consumer advocate, is a mechanism to coordinate federal and state policies, and should be used as a tool for the Commission to ensure any changes to the fund achieve the statutory goals in an ctlective and appropri ately tailored way. The recent Lifeline refom1 order reflecting the recommendations of the Joint Board demonstrates the contemplated use of the board. If you have any questions regarding this request, please have your staff contact David Red) with the I louse Energy & Commerce Committee staff at (202) 225-2927 or David Quinalty with the Senate Commerce Committee staff at (202) 224-0827. PRINTED ON RECYCLED PAPER resentative Fred Upto Chairman Committee on Energy and Commerce Represent% Greg Walden Chairman Subcommittee on Communications and Technology Sincerely, r John Thune ing Member 0 mmittee on Commerce, Science, and Transportation Senatm Rc rer Wicker Ranking Subcommittee on Communications, Technology, and the Internet cc: The Honorable John D. Rockefeller, Chairman Senate Committee on Commerce, Science, and Transportation The Honorable Henry A. Waxman, Ranking Member I louse Committee on Energy and Commerce The Honorable Mark Pryor, Chairman Subcommittee on Communications, Technology, and the Internet The Honorable Anna Eshoo, Ranking Member Subcommittee on Communications and Technology The Honorable Mignon Clyburn, Commissioner Federal Communications Commission The Honorable Jessica Roscnworcel, Commissioner Federal Communications Commission The Honorable Ajit Pai, Commissioner Federal Communications Commission The Honorable Michael O'Rielly, Commissioner Federal Communications Commission