tlnitrd ~rates ~cnatc WASHINGTON. DC 20510 374 May 15, 2018 The Honorable Ajit Pai Chairman Federal Communications Commission 445 12th Street, S.W. Washington, DC 20554 Dear Chairman Pai: We write to express our strong support and sincere gratitude for the recent Order addressing budget shortfalls in the Universal Service Fund's (USF) High-Cost program. The Order is an essential, immediate step in the right direction, and we now encourage the Federal Communications Commission (FCC) to continue down this path by acting quickly on the notice of proposed rulemaking to provide long-term, predictable support. Such additional steps are necessary to ensure rural Americans have access to high quality voice and broadband services. The FCC' s recent Order approving an infusion of funds into the USF is greatly welcomed, and will provide needed support for small, rural carriers that rely on the High-Cost USF program. Despite this, persistent limitations on resources can affect the ability of smaller broadband providers to deliver services in our country's most rural communities. The FCC's cost model for smaller operators electing model-based USF support is not yet funded at the designed levels, and carriers not receiving model-based support will once again face significant funding cuts when the program's new fiscal year takes effect on July 1, 2018. These recurring budget shortfalls result in lower speeds, more unserved locations, and higher prices for rural consumers and businesses. Congress has expressed consistent, bipartisan support for addressing shortfalls in the USF program. In April 2017, 58 Senators called on the FCC to provide adequate resources for broadband delivery services to rural consumers in areas that are the hardest and costliest to serve. In May 2017, 102 Representatives wrote to the FCC, expressing similar concerns about the impacts of insufficient USF resources on rural consumers. We commend the FCC's actions thus far to address and modernize USF support. Taking action on the notice of proposed rulemaking and establishing lasting solutions that allow the reformed High-Cost mechanism to work as designed would enable many smaller operators to offer high quality, affordable broadband to consumers across rural America. It is important to consider any modifications needed to meet the program's objectives of ensuring consistent network build-out and strengthening ongoing service, for locations otherwise unserved, in our nation's high-cost rural areas. Thank you for the actions you have undertaken thus far to support the USF and for considering this request. We share your goal of eliminating the digital divide and look forward to working with you to maintain accessible, affordable broadband for rural American consumers and businesses. Sincerely, ~ ~\~ Deb Fischer Amy ~ United States Senator Unite:stateSellator Bill Nelson Ranking Member, Senate Commerce Committee Roy Blunt United States Senator ~~,~ Jerry Mor Maria Cantwell United States Senator United States Senator "') Gary C. ers United States Senator United States Senator Roger F. i ker Tammy Duckw: United Sta United States enator Catherine Cortez Masto United States Senator United States Senator ~!JI.~ /J,.,.,._ Margaret Wood Hassan United States Senator Shelley Moore Capito on Tester United States Senator United States Senator Michael F. Bennet United States Senator United States Senator Charles E. Grassley United States Senator Comyn Kirsten Gillibrand United States Senator United States Senator United States Senator Tina Smith United States Senator United States Senator Claire McCaskill United States Senator United States Senator Tim Scott United States Senator United States Senator Marco Rubio United States Senator United States Senator Angus S. Kin , Jr. United States Senator United States Senator United States Senator United States Senator United States Senator Tom Cotton Tim Kaine United States Senator United States Senator United States Senator United States Senator United States Senator I Jeffrey A:~;rkle y United States Senator Steve Daines ~ - -- ---e Feinstein United States Senator United States Senator (];' IJ ~SS ;e/ii ;YJ, !J, Bill Cassidy, M.D. United States Senator ~B""-'-~-------rrl Rob Portman Richard Burr United States Senator United States Senator Ben Sasse Mark Warner United States Senator United States Senator Susan M. Collins Patr~ 1ki; United States Senator United States Senator . ~ . Thom Tillis rti1zmiili 1#-~ United States Senator United States Senator Kennedy nited States Senato