Contributed article
WILLCOX — Today, the U.S. Supreme Court affirmed the constitutionality of the Federal Communications Commission’s delegation of authority to the Universal Service Administrative Company (USAC), preserving the legal foundation of the Universal Service Fund (USF). This decision ensures continued support for critical broadband infrastructure and services in rural communities across the country.
Valley TeleCom Group (Valley) welcomes the Court’s decision, which safeguards the Alternative Connect America Cost Model II (ACAM II) funding support we receive through USF. This funding enables us to build and maintain fiber networks, supporting 20 schools and seven libraries, and serving a dozen healthcare providers in our region.
“This ruling is a win for rural America,” said Troy Judd, CEO at Valley. “It allows us to continue delivering essential connectivity to the communities that need it most.”
However, the decision does not resolve the underlying challenges facing the USF. The current funding mechanism, based on a shrinking base of telecommunications revenues, is unsustainable. The contribution factor has nearly doubled over the past decade, placing increasing strain on providers and consumers alike.
We applaud the reconstitution of the bipartisan, bicameral Congressional USF Working Group in June 2025, which aims to reform USF. Led by Senator Ben Ray Luján (D-NM) and Senator Deb Fischer (R-NE), the working group looks to modernize the USF and ensure its long-term viability in a rapidly evolving digital landscape.
Valley remains committed to advocating for a future-ready USF that continues to empower rural communities and bridge the digital divide.
