FRED UPTON, MICHIGAN 
CHAIRMAN 
ONE HUNDRED THIRTEENTH CONGRESS 
HENRY A. WAXMAN, CALIFORNIA 
RANKING MEMBER 
(!Congress of tbe mtntteb ~tates 
j!)ouse of l\epresentatibes 
COMMITTEE ON ENERGY AND COMMERCE 
2125 R AYBURN H ousE O FFICE B uiLDING 
W ASHINGTON, DC 20515-6115 
The Honorable Tom Wheeler 
Chainnan 
Federal Communications Commission 
445 1 t 11 Street S W 
Washington, DC 20554 
Dear Chairman Wheeler: 
Majority 12 •2 225 q27 
Minority (1 11 77 3b41 
July 10,2014 
The Universal Service Fund's Schools and Libraries program, also known as E-Rate, 
provides funding to assist schools and libraries in connecting our students through access to 
telecommunications services and the Internet, an important goal that we all share. Modernizing 
the fund to efficiently achieve these goals and keep pace with changing techno logies has long 
been a bipartisan priority. Part of that reform should include tiscal prudence. As we wrote you 
earlier this year, the explosive and unconstrained growth of the Universal Service Fund is 
extremely troubling to us, and it is more important than ever that USF programs be structured to 
maximize value without growing the size of the fund. Last month, you announced a proposal to 
reform the E-Ratc through streamlining administration of the fund and improving utilization of 
existing funds; this is an approach we support. 
Unfortunately, recent reports raise concerns about your commitment to work within 
existing funds. The proposal promises $5 billion in new Wi-Fi spending over five years plus 
continued support for broadband technologies at all schools and libraries. Two billion dollars is 
supposed to be reprogrammed from unused funds, but the Commission's 2014 carry-forward 
public notice only identified $600 million in available funds, $200 million of which was needed 
to fully fund existing services in 2014. Other funding is supposed to come from phasing out 
voice telephone and other outdated services. However, last year's NPRM only identified $436 
million in potential voice telephone savings, and Commissioners Rosenworcel and Pai identified 
only $600 million in savings from eliminating voice and other outdated technologies. Given 
these public figures and reports that your proposal would reduce, but not e liminate, voice 
subsidies for most schools over two years, the numbers don't seem to add up. A recent FCC blog 
post suggested there could be $ 1.2 billion in savings by eliminating support for non-broadband 
services, and yet we have not seen evidence of this number. These types of discrepancies 
underscore our concerns over the sustainabi lity of your plans without imposing additional 
charges on American telecommunications customers' monthly bills. 
Letter to the Honorable Wheeler 
Pagc2 
We are also troubled by press reports that you have promised to increase theE-Rate 
budget in the "near term" and recent allegations by Commissioner Pai that you are planning to 
grow the size of the existing $9 billion Universal Service Fund through Commission action in a 
subsequent item. This would be an unacceptable course of action. We urge you to modernize the 
fund to bring our nation's students the twenty-tirst century tools they need to succeed without 
increasing the ever-growing burden of USF on rate-payers. 
In addition to the financial considerations, recent reports have also raised red !lags as to 
the procedural approach to this item. As you know, good FCC process has long been a priority 
for the Committee. Engaging in bipartisan deliberation of all items should be the goal for every 
Chairman, particularly when all parties should share the same goals: creating a fund that will 
appropriately serve schools and the students that rely on modem technology, and that is tiscally 
prudent and does not over-burden ratepayers. 
Sincerely, 
Subcommittee on Communications and 
·rechnology 
cc: The Honorable Henry A. Waxman, Ranking Member 
House Committee on Energy and Commerce 
The Honorable Anna Eshoo, Ranking Member 
Subcommittee on Communications and Technology 
The Honorable Mignon Clyburn, Commissioner 
Federal Communications Commission 
The Honorable Jessica Rosenworcel, Commissioner 
Federal Communications Commission 
The Honorable Ajit Pai, Commissioner 
Federal Communications Commission 
The Honorable Michael O'Riclly, Commissioner 
Federal Communications Commission