FCC Pushes High-Cost Broadband Into All-IP Era
Published Date: 6/5/2026
Proposed Rule
Summary
The FCC is updating its High-Cost Program to better support broadband in rural and hard-to-reach areas, making sure networks are ready for the future with faster, smarter internet. This change helps boost American tech leadership and supports the shift to modern internet systems, with feedback due by early September 2026. It’s about making sure everyone stays connected as technology zooms ahead!
Analyzed Economic Effects
7 provisions identified: 2 benefits, 3 costs, 2 mixed.
Support Conditioned on 100/20 Deployment
The FCC is asking whether future high-cost support should require carriers to deploy voice and broadband at speeds of at least 100/20 Mbps (matching BEAD and Enhanced A‑CAM obligations) and whether recipients should meet other performance goals (latency, upload, cybersecurity). If adopted, getting ongoing support could depend on meeting those deployment and performance timelines and milestones.
Two‑Year A‑CAM I Extension Offer
The FCC is proposing a short-term extension of A-CAM I support through the end of 2028 so carriers would continue to receive their previously authorized annual support while location adjustments are done. As a condition, carriers must maintain voice and broadband service, respond to reasonable requests to serve additional locations, and could face support recovery if they fail network testing during the extension (with proposed recovery levels of 25%, 50%, 75%, or 100% depending on testing level).
Limit Support Where Unsubsidized Competitors Exist
The FCC proposes limiting or eliminating high-cost support in locations where an unsubsidized competitor or a provider with an enforceable funding commitment already offers qualifying broadband or voice service, and would use mapping tools (Broadband Funding Map, National Broadband Map) to identify overlap. The NPRM seeks comment on what geographic granularity to use (BSLs, census blocks) and how to handle disputes and restorations if mapping changes.
Possible Single Modernized Support Mechanism
The FCC is considering three paths: (1) update existing legacy high-cost mechanisms, (2) replace them with a single new model-based modernized support mechanism, or (3) take no action and let expiring A-CAM mechanisms sunset. The NPRM asks for comment on advantages, disadvantages, and whether a new mechanism should be model-based or use another calculation method.
Support May Be Limited to Capital or Operating Costs
The FCC seeks comment on whether future high-cost support should prioritize capital expenditures or operating expenses, whether support for capital should be capped, and whether a new mechanism might support only operating costs for existing networks. The NPRM also asks about transition paths and percentage reductions year-to-year if recipients move to different support levels.
LEO Satellite May Affect Support and Obligations
The FCC notes that nearly all of the roughly 267,000 BSLs lacking 100/20 Mbps are shown on the June 30, 2025 National Broadband Map as served by LEO satellite, and it asks whether satellite availability should affect whether terrestrial buildout obligations apply or whether support should be reduced where satellite is available. The FCC also observed retail satellite plans like Starlink at $80 or $120/month and compared that to up to $200/month USF support per location for some legacy recipients.
Paperwork Relief for Very Small Businesses
The FCC invites comment under the Paperwork Reduction Act and the Small Business Paperwork Relief Act on ways to reduce information collection burdens, specifically asking how to reduce burdens for small business concerns with fewer than 25 employees. The Commission also prepared an Initial Regulatory Flexibility Analysis and seeks public comment on potential economic impacts to small entities.
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Key Dates
Department and Agencies
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