Ajit Pai wants to cap spending on broadband for poor people and rural areas

Enlarge / FCC members (L-R) Brendan Carr, Michael O'Rielly, and Chairman Ajit Pai participate in a discussion during the Conservative Political Action Conference on February 23, 2018 in Maryland. (credit: Getty Images | Chip Somodevilla )
Federal Communications Commission Chairman Ajit Pai has proposed a new spending cap on the FCC's Universal Service programs that deploy broadband to poor people and to rural and other underserved areas.
Pai reportedly circulated the proposal to fellow commissioners on Tuesday, meaning it will be voted upon behind closed doors instead of in an open meeting. Pai has not released the proposal publicly, but it was described in a Politico report Wednesday, and an FCC official confirmed the proposal's details to Ars. Democratic FCC commissioners and consumer advocacy groups have criticized Pai's plan, saying it could harm the FCC's efforts to expand broadband access.
The FCC's Universal Service system's purpose is to bring communications service access to all Americans and consists of four programs: The Connect America Fund, which gives ISPs money to deploy broadband in rural areas; Lifeline, which provides discounts on phone and broadband service to low-income consumers; the E-Rate broadband program for schools and libraries; and a telecom access program for rural health care providers.
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