§ 254. Universal service

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(a)Procedures to review universal service requirements

(1)Federal-State Joint Board on universal service Within one month after February 8, 1996, the Commission shall institute and refer to a Federal-State Joint Board under section 410(c) of this title a proceeding to recommend changes to any of its regulations in order to implement sections 214(e) of this title and this section, including the definition of the services that are supported by Federal universal service support mechanisms and a specific timetable for completion of such recommendations. In addition to the members of the Joint Board required under section 410(c) of this title, one member of such Joint Board shall be a State-appointed utility consumer advocate nominated by a national organization of State utility consumer advocates. The Joint Board shall, after notice and opportunity for public comment, make its recommendations to the Commission 9 months after February 8, 1996.

(2)Commission action The Commission shall initiate a single proceeding to implement the recommendations from the Joint Board required by paragraph

(1)and shall complete such proceeding within 15 months after February 8, 1996. The rules established by such proceeding shall include a definition of the services that are supported by Federal universal service support mechanisms and a specific timetable for implementation. Thereafter, the Commission shall complete any proceeding to implement subsequent recommendations from any Joint Board on universal service within one year after receiving such recommendations.

(b)Universal service principles The Joint Board and the Commission shall base policies for the preservation and advancement of universal service on the following principles:

(1)Quality and rates Quality services should be available at just, reasonable, and affordable rates.

(2)Access to advanced services Access to advanced telecommunications and information services should be provided in all regions of the Nation.

(3)Access in rural and high cost areas Consumers in all regions of the Nation, including low-income consumers and those in rural, insular, and high cost areas, should have access to telecommunications and information services, including interexchange services and advanced telecommunications and information services, that are reasonably comparable to those services provided in urban areas and that are available at rates that are reasonably comparable to rates charged for similar services in urban areas.

(4)Equitable and nondiscriminatory contributions All providers of telecommunications services should make an equitable and nondiscriminatory contribution to the preservation and advancement of universal service.

(5)Specific and predictable support mechanisms There should be specific, predictable and sufficient Federal and State mechanisms to preserve and advance universal service.

(6)Access to advanced telecommunications services for schools, health care, and libraries Elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications services as described in subsection (h).

(7)Additional principles Such other principles as the Joint Board and the Commission determine are necessary and appropriate for the protection of the public interest, convenience, and necessity and are consistent with this chapter.

(c)Definition

(1)In general Universal service is an evolving level of telecommunications services that the Commission shall establish periodically under this section, taking into account advances in telecommunications and information technologies and services. The Joint Board in recommending, and the Commission in establishing, the definition of the services that are supported by Federal universal service support mechanisms shall consider the extent to which such telecommunications services—

(A)are essential to education, public health, or public safety;

(B)have, through the operation of market choices by customers, been subscribed to by a substantial majority of residential customers;

(C)are being deployed in public telecommunications networks by telecommunications carriers; and

(D)are consistent with the public interest, convenience, and necessity.

(2)Alterations and modifications The Joint Board may, from time to time, recommend to the Commission modifications in the definition of the services that are supported by Federal universal service support mechanisms.

(3)Special services In addition to the services included in the definition of universal service under paragraph (1), the Commission may designate additional services for such support mechanisms for schools, libraries, and health care providers for the purposes of subsection (h).

(d)Telecommunications carrier contribution Every telecommunications carrier that provides interstate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, to the specific, predictable, and sufficient mechanisms established by the Commission to preserve and advance universal service. The Commission may exempt a carrier or class of carriers from this requirement if the carrier’s telecommunications activities are limited to such an extent that the level of such carrier’s contribution to the preservation and advancement of universal service would be de minimis. Any other provider of interstate telecommunications may be required to contribute to the preservation and advancement of universal service if the public interest so requires.

(e)Universal service support After the date on which Commission regulations implementing this section take effect, only an eligible telecommunications carrier designated under section 214(e) of this title shall be eligible to receive specific Federal universal service support. A carrier that receives such support shall use that support only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. Any such support should be explicit and sufficient to achieve the purposes of this section.

(f)State authority A State may adopt regulations not inconsistent with the Commission’s rules to preserve and advance universal service. Every telecommunications carrier that provides intrastate telecommunications services shall contribute, on an equitable and nondiscriminatory basis, in a manner determined by the State to the preservation and advancement of universal service in that State. A State may adopt regulations to provide for additional definitions and standards to preserve and advance universal service within that State only to the extent that such regulations adopt additional specific, predictable, and sufficient mechanisms to support such definitions or standards that do not rely on or burden Federal universal service support mechanisms.

(g)Interexchange and interstate services Within 6 months after February 8, 1996, the Commission shall adopt rules to require that the rates charged by providers of interexchange telecommunications services to subscribers in rural and high cost areas shall be no higher than the rates charged by each such provider to its subscribers in urban areas. Such rules shall also require that a provider of interstate interexchange telecommunications services shall provide such services to its subscribers in each State at rates no higher than the rates charged to its subscribers in any other State.

(h)Telecommunications services for certain providers

(1)In general

(A)Health care providers for rural areas A telecommunications carrier shall, upon receiving a bona fide request, provide telecommunications services which are necessary for the provision of health care services in a State, including instruction relating to such services, to any public or nonprofit health care provider that serves persons who reside in rural areas in that State at rates that are reasonably comparable to rates charged for similar services in urban areas in that State. A telecommunications carrier providing service under this paragraph shall be entitled to have an amount equal to the difference, if any, between the rates for services provided to health care providers for rural areas in a State and the rates for similar services provided to other customers in comparable rural areas in that State treated as a service obligation as a part of its obligation to participate in the mechanisms to preserve and advance universal service.

(B)Educational providers and libraries All telecommunications carriers serving a geographic area shall, upon a bona fide request for any of its services that are within the definition of universal service under subsection (c)(3), provide such services to elementary schools, secondary schools, and libraries for educational purposes at rates less than the amounts charged for similar services to other parties. The discount shall be an amount that the Commission, with respect to interstate services, and the States, with respect to intrastate services, determine is appropriate and necessary to ensure affordable access to and use of such services by such entities. A telecommunications carrier providing service under this paragraph shall—

(i)have an amount equal to the amount of the discount treated as an offset to its obligation to contribute to the mechanisms to preserve and advance universal service, or

(ii)notwithstanding the provisions of subsection

(e)of this section, receive reimbursement utilizing the support mechanisms to preserve and advance universal service.

(2)Advanced services The Commission shall establish competitively neutral rules—

(A)to enhance, to the extent technically feasible and economically reasonable, access to advanced telecommunications and information services for all public and nonprofit elementary and secondary school classrooms, health care providers, and libraries; and

(B)to define the circumstances under which a telecommunications carrier may be required to connect its network to such public institutional telecommunications users.

(3)Terms and conditions Telecommunications services and network capacity provided to a public institutional telecommunications user under this subsection may not be sold, resold, or otherwise transferred by such user in consideration for money or any other thing of value.

(4)Eligibility of users No entity listed in this subsection shall be entitled to preferential rates or treatment as required by this subsection, if such entity operates as a for-profit business, is a school described in paragraph (7)(A) with an endowment of more than $50,000,000, or is a library or library consortium not eligible for assistance from a State library administrative agency under the Library Services and Technology Act [20 U.S.C. 9121 et seq.].

(5)Requirements for certain schools with computers having Internet access

(A)Internet safety

(i)In general Except as provided in clause (ii), an elementary or secondary school having computers with Internet access may not receive services at discount rates under paragraph (1)(B) unless the school, school board, local educational agency, or other authority with responsibility for administration of the school—

(I)submits to the Commission the certifications described in subparagraphs

(B)and (C);

(II)submits to the Commission a certification that an Internet safety policy has been adopted and implemented for the school under subsection (l); and

(III)ensures the use of such computers in accordance with the certifications.

(ii)Applicability The prohibition in clause

(i)shall not apply with respect to a school that receives services at discount rates under paragraph (1)(B) only for purposes other than the provision of Internet access, Internet service, or internal connections.

(iii)Public notice; hearing An elementary or secondary school described in clause (i), or the school board, local educational agency, or other authority with responsibility for administration of the school, shall provide reasonable public notice and hold at least one public hearing or meeting to address the proposed Internet safety policy. In the case of an elementary or secondary school other than an elementary school or a secondary school as defined in section 7801 of title 20, the notice and hearing required by this clause may be limited to those members of the public with a relationship to the school.

(B)Certification with respect to minors A certification under this subparagraph is a certification that the school, school board, local educational agency, or other authority with responsibility for administration of the school—

(i)is enforcing a policy of Internet safety for minors that includes monitoring the online activities of minors and the operation of a technology protection measure with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

(I)obscene;

(II)child pornography; or

(III)harmful to minors;

(ii)is enforcing the operation of such technology protection measure during any use of such computers by minors; and

(iii)as part of its Internet safety policy is educating minors about appropriate online behavior, including interacting with other individuals on social networking websites and in chat rooms and cyberbullying awareness and response.

(C)Certification with respect to adults A certification under this paragraph is a certification that the school, school board, local educational agency, or other authority with responsibility for administration of the school—

(i)is enforcing a policy of Internet safety that includes the operation of a technology protection measure with respect to any of its computers with Internet access that protects against access through such computers to visual depictions that are—

(I)obscene; or

(II)child pornography; and

(ii)is enforcing the operation of such technology protection measure during any use of such computers.

(D)Disabling during adult use An administrator, supervisor, or other person authorized by the certifying authority under subparagraph (A)(i) may disable the technology protection measure concerned, during use by an adult, to enable access for bona fide research or other lawful purpose.

(E)Timing of implementation

(i)In general Subject to clause

(ii)in the case of any school covered by this paragraph as of the effective date of this paragraph under section 1721(h) of the Children’s Internet Protection Act, the certification under subparagraphs

(B)and

(C)shall be made—

(I)with respect to the first program funding year under this subsection following such effective date, not later than 120 days after the beginning of such program funding year; and

(II)with respect to any subsequent program funding year, as part of the application process for such program funding year.

(ii)Process

(I)Schools with Internet safety policy and technology protection measures in place A school covered by clause

(i)that has in place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs

(B)and

(C)shall certify its compliance with subparagraphs

(B)and

(C)during each annual program application cycle under this subsection, except that with respect to the first program funding year after the effective date of this paragraph under section 1721(h) of the Children’s Internet Protection Act, the certifications shall be made not later than 120 days after the beginning of such first program funding year.

(II)Schools without Internet safety policy and technology protection measures in place A school covered by clause

(i)that does not have in place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs

(B)and (C)—

(aa)for the first program year after the effective date of this subsection in which it is applying for funds under this subsection, shall certify that it is undertaking such actions, including any necessary procurement procedures, to put in place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs

(B)and (C); and

(bb)for the second program year after the effective date of this subsection in which it is applying for funds under this subsection, shall certify that it is in compliance with subparagraphs

(B)and (C).

Any school that is unable to certify compliance with such requirements in such second program year shall be ineligible for services at discount rates or funding in lieu of services at such rates under this subsection for such second year and all subsequent program years under this subsection, until such time as such school comes into compliance with this paragraph.

(III)Waivers Any school subject to subclause

(II)that cannot come into compliance with subparagraphs

(B)and

(C)in such second year program may seek a waiver of subclause (II)(bb) if State or local procurement rules or regulations or competitive bidding requirements prevent the making of the certification otherwise required by such subclause. A school, school board, local educational agency, or other authority with responsibility for administration of the school shall notify the Commission of the applicability of such subclause to the school. Such notice shall certify that the school in question will be brought into compliance before the start of the third program year after the effective date of this subsection in which the school is applying for funds under this subsection.

(F)Noncompliance

(i)Failure to submit certification Any school that knowingly fails to comply with the application guidelines regarding the annual submission of certification required by this paragraph shall not be eligible for services at discount rates or funding in lieu of services at such rates under this subsection.

(ii)Failure to comply with certification Any school that knowingly fails to ensure the use of its computers in accordance with a certification under subparagraphs

(B)and

(C)shall reimburse any funds and discounts received under this subsection for the period covered by such certification.

(iii)Remedy of noncompliance

(I)Failure to submit A school that has failed to submit a certification under clause

(i)may remedy the failure by submitting the certification to which the failure relates. Upon submittal of such certification, the school shall be eligible for services at discount rates under this subsection.

(II)Failure to comply A school that has failed to comply with a certification as described in clause

(ii)may remedy the failure by ensuring the use of its computers in accordance with such certification. Upon submittal to the Commission of a certification or other appropriate evidence of such remedy, the school shall be eligible for services at discount rates under this subsection.

(6)Requirements for certain libraries with computers having Internet access

(A)Internet safety

(i)In general Except as provided in clause (ii), a library having one or more computers with Internet access may not receive services at discount rates under paragraph (1)(B) unless the library—

(I)submits to the Commission the certifications described in subparagraphs

(B)and (C); and

(II)submits to the Commission a certification that an Internet safety policy has been adopted and implemented for the library under subsection (l); and

(III)ensures the use of such computers in accordance with the certifications.

(ii)Applicability The prohibition in clause

(i)shall not apply with respect to a library that receives services at discount rates under paragraph (1)(B) only for purposes other than the provision of Internet access, Internet service, or internal connections.

(iii)Public notice; hearing A library described in clause

(i)shall provide reasonable public notice and hold at least one public hearing or meeting to address the proposed Internet safety policy.

(B)Certification with respect to minors A certification under this subparagraph is a certification that the library—

(I)obscene;

(II)child pornography; or

(III)harmful to minors; and

(ii)is enforcing the operation of such technology protection measure during any use of such computers by minors.

(C)Certification with respect to adults A certification under this paragraph is a certification that the library—

(I)obscene; or

(II)child pornography; and

(ii)is enforcing the operation of such technology protection measure during any use of such computers.

(E)Timing of implementation

(i)In general Subject to clause

(ii)in the case of any library covered by this paragraph as of the effective date of this paragraph under section 1721(h) of the Children’s Internet Protection Act, the certification under subparagraphs

(B)and

(C)shall be made—

(I)with respect to the first program funding year under this subsection following such effective date, not later than 120 days after the beginning of such program funding year; and

(II)with respect to any subsequent program funding year, as part of the application process for such program funding year.

(ii)Process

(I)Libraries with Internet safety policy and technology protection measures in place A library covered by clause

(i)that has in place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs

(B)and

(C)shall certify its compliance with subparagraphs

(B)and

(II)Libraries without Internet safety policy and technology protection measures in place A library covered by clause

(i)that does not have in place an Internet safety policy and technology protection measures meeting the requirements necessary for certification under subparagraphs

(B)and (C)—

(B)and (C); and

(bb)for the second program year after the effective date of this subsection in which it is applying for funds under this subsection, shall certify that it is in compliance with subparagraphs

(B)and (C).

Any library that is unable to certify compliance with such requirements in such second program year shall be ineligible for services at discount rates or funding in lieu of services at such rates under this subsection for such second year and all subsequent program years under this subsection, until such time as such library comes into compliance with this paragraph.

(III)Waivers Any library subject to subclause

(II)that cannot come into compliance with subparagraphs

(B)and

(C)in such second year may seek a waiver of subclause (II)(bb) if State or local procurement rules or regulations or competitive bidding requirements prevent the making of the certification otherwise required by such subclause. A library, library board, or other authority with responsibility for administration of the library shall notify the Commission of the applicability of such subclause to the library. Such notice shall certify that the library in question will be brought into compliance before the start of the third program year after the effective date of this subsection in which the library is applying for funds under this subsection.

(F)Noncompliance

(i)Failure to submit certification Any library that knowingly fails to comply with the application guidelines regarding the annual submission of certification required by this paragraph shall not be eligible for services at discount rates or funding in lieu of services at such rates under this subsection.

(ii)Failure to comply with certification Any library that knowingly fails to ensure the use of its computers in accordance with a certification under subparagraphs

(B)and

(C)shall reimburse all funds and discounts received under this subsection for the period covered by such certification.

(iii)Remedy of noncompliance

(I)Failure to submit A library that has failed to submit a certification under clause

(i)may remedy the failure by submitting the certification to which the failure relates. Upon submittal of such certification, the library shall be eligible for services at discount rates under this subsection.

(II)Failure to comply A library that has failed to comply with a certification as described in clause

(ii)may remedy the failure by ensuring the use of its computers in accordance with such certification. Upon submittal to the Commission of a certification or other appropriate evidence of such remedy, the library shall be eligible for services at discount rates under this subsection.

(7)Definitions For purposes of this subsection:

(A)Elementary and secondary schools The term “elementary and secondary schools” means elementary schools and secondary schools, as defined in section 7801 of title 20.

(B)Health care provider The term “health care provider” means—

(i)post-secondary educational institutions offering health care instruction, teaching hospitals, and medical schools;

(ii)community health centers or health centers providing health care to migrants;

(iii)local health departments or agencies;

(iv)community mental health centers;

(v)not-for-profit hospitals;

(vi)rural health clinics;

(vii)skilled nursing facilities (as defined in section 395i–3(a) of title 42); and

(viii)consortia of health care providers consisting of one or more entities described in clauses

(i)through (vii).

(C)Public institutional telecommunications user The term “public institutional telecommunications user” means an elementary or secondary school, a library, or a health care provider as those terms are defined in this paragraph.

(D)Minor The term “minor” means any individual who has not attained the age of 17 years.

(E)Obscene The term “obscene” has the meaning given such term in section 1460 of title 18.

(F)Child pornography The term “child pornography” has the meaning given such term in section 2256 of title 18.

(G)Harmful to minors The term “harmful to minors” means any picture, image, graphic image file, or other visual depiction that—

(i)taken as a whole and with respect to minors, appeals to a prurient interest in nudity, sex, or excretion;

(ii)depicts, describes, or represents, in a patently offensive way with respect to what is suitable for minors, an actual or simulated sexual act or sexual contact, actual or simulated normal or perverted sexual acts, or a lewd exhibition of the genitals; and

(iii)taken as a whole, lacks serious literary, artistic, political, or scientific value as to minors.

(H)Sexual act; sexual contact The terms “sexual act” and “sexual contact” have the meanings given such terms in section 2246 of title 18.

(I)Technology protection measure The term “technology protection measure” means a specific technology that blocks or filters Internet access to the material covered by a certification under paragraph

(5)or

(6)to which such certification relates.

(i)Consumer protection The Commission and the States should ensure that universal service is available at rates that are just, reasonable, and affordable.

(j)Lifeline assistance Nothing in this section shall affect the collection, distribution, or administration of the Lifeline Assistance Program provided for by the Commission under regulations set forth in section 69.117 of title 47, Code of Federal Regulations, and other related sections of such title.

(k)Subsidy of competitive services prohibited A telecommunications carrier may not use services that are not competitive to subsidize services that are subject to competition. The Commission, with respect to interstate services, and the States, with respect to intrastate services, shall establish any necessary cost allocation rules, accounting safeguards, and guidelines to ensure that services included in the definition of universal service bear no more than a reasonable share of the joint and common costs of facilities used to provide those services.

(l)Internet safety policy requirement for schools and libraries

(1)In general In carrying out its responsibilities under subsection (h), each school or library to which subsection

(h)applies shall—

(A)adopt and implement an Internet safety policy that addresses—

(i)access by minors to inappropriate matter on the Internet and World Wide Web;

(ii)the safety and security of minors when using electronic mail, chat rooms, and other forms of direct electronic communications;

(iii)unauthorized access, including so-called “hacking”, and other unlawful activities by minors online;

(iv)unauthorized disclosure, use, and dissemination of personal identification information regarding minors; and

(v)measures designed to restrict minors’ access to materials harmful to minors; and

(B)provide reasonable public notice and hold at least one public hearing or meeting to address the proposed Internet safety policy.

(2)Local determination of content A determination regarding what matter is inappropriate for minors shall be made by the school board, local educational agency, library, or other authority responsible for making the determination. No agency or instrumentality of the United States Government may—

(A)establish criteria for making such determination;

(B)review the determination made by the certifying school, school board, local educational agency, library, or other authority; or

(C)consider the criteria employed by the certifying school, school board, local educational agency, library, or other authority in the administration of subsection (h)(1)(B).

(3)Availability for review Each Internet safety policy adopted under this subsection shall be made available to the Commission, upon request of the Commission, by the school, school board, local educational agency, library, or other authority responsible for adopting such Internet safety policy for purposes of the review of such Internet safety policy by the Commission.

(4)Effective date This subsection shall apply with respect to schools and libraries on or after the date that is 120 days after December 21, 2000.

(m)Vetting of high-cost fund recipients

(1)Definitions In this subsection—

(A)the term “covered funding” means any new offer of high-cost universal service program funding, including funding provided through a reverse competitive bidding mechanism provided under this section, for the deployment of a broadband-capable network and the provision of supported services over the network; and

(B)the term “new covered funding award” means an award of covered funding that is made based on an application submitted to the Commission on or after the date on which rules are promulgated under paragraph (2).

(2)Commission rulemaking Not later than 180 days after May 11, 2026, the Commission shall initiate a rulemaking proceeding to establish a vetting process for applicants for, and other recipients of, a new covered funding award.

(3)Contents

(A)In general In promulgating rules under paragraph (2), the Commission shall provide that, consistent with principles of technology neutrality, the Commission will only award covered funding to applicants that can demonstrate that they meet the qualifications in subparagraph (B).

(B)Qualifications described An applicant for a new covered funding award shall include in the initial application a proposal containing sufficient detail and documentation for the Commission to ascertain that the applicant possesses the technical, financial, and operational capabilities, and has a reasonable business plan, to deploy the proposed network and deliver services with the relevant performance characteristics and requirements defined by the Commission and as pledged by the applicant.

(C)Evaluation of proposal The Commission shall evaluate a proposal described in subparagraph

(B)against—

(i)reasonable and well-established technical, financial, and operational standards, including the technical standards adopted by the Commission in orders of the Commission relating to Establishing the Digital Opportunity Data Collection (WC Docket No. 19–195) (or orders of the Commission relating to modernizing any successor collection) for purposes of entities that must report broadband availability coverage; and

(ii)the applicant’s history of complying with requirements in Commission and other government broadband deployment funding programs.

(D)Penalties for pre-authorization defaults In adopting rules for any new covered funding award, the Commission shall set a penalty for pre-authorization defaults of at least $9,000 per violation and may not limit the base forfeiture to an amount less than 30 percent of the applicant’s total support, unless the Commission demonstrates the need for lower penalties in a particular instance.

(June 19, 1934, ch. 652, title II, § 254, as added Pub. L. 104–104, title I, § 101(a), Feb. 8, 1996, 110 Stat. 71; amended Pub. L. 104–208, div. A, title I, § 101(e) [title VII, § 709(a)(8)], Sept. 30, 1996, 110 Stat. 3009–233, 3009–313; Pub. L. 106–554, § 1(a)(4) [div. B, title XVII, §§ 1721(a)–(d), 1732], Dec. 21, 2000, 114 Stat. 2763, 2763A–343 to 2763A–350; Pub. L. 107–110, title X, § 1076(hh), Jan. 8, 2002, 115 Stat. 2094; Pub. L. 110–385, title II, § 215, Oct. 10, 2008, 122 Stat. 4104; Pub. L. 114–95, title IX, § 9215(s), Dec. 10, 2015, 129 Stat. 2171; Pub. L. 114–182, title II, § 202(a), June 22, 2016, 130 Stat. 512; Pub. L. 118–89, § 2, May 11, 2026, 140 Stat. 818.)

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