Statement. Thank you for the witnesses for being here today. Americans rely on Internet Connectivity for work, education, healthcare. Despite americans are still without a reliable broadband connection. Closing this divide is a resour have been dedicated , a problem requires an efficient response is overwhelming and said, the government is not the solution to the problem but is the problem. In may of 2022, the Government Accountability office found there were over 130 federal Government Agencies. These programs, the broadband equity access created an Infrastructure Investment and jobs and missed 42. 45 billion. One of the Top Priorities is making sure these programs administered effectively so that money dedicated to closing the Digital Divide achieves its goal. The main concern about whether that will happen. Some of these programs including outside trade of regular order, there is no discussion of 42 billion is the right number or debate on how the program should be administered. Very little of this money ifwir carriers and provide Critical Services. Am also concerned that rising cost of labor and equipment will create changes taking money required for appointment. And i worry that the federal government will waste this opportunity to connect all americans. Oversight of these existing programs is crucial for the loo future to consider what federal funding for broadband should look like when programs like this conclude. For example, the universal service fund was created in 1997 and distributes approximately 8 billion per year. This supports four broadband programs starting in high cost areas, low income households and rural healthcare facilities. Many small world providers are dependent on the deployment and unserved areas. Over the past few years however, congress has been spending billions of dollars with the same efforts through the emergency connectivity fund, the Affordable Connectivity Program and covid telehealth programs. Congress needs to address whether we still need the usf and if so, what it should look like. This includes addressing what programs the usf should fund, how the usf should be funded and what reforms they need to without waste, fraud or abuse. These are important questions for congress to consider. Answering them will require a serious bipartisan discussion. And pleased to announce today that the rankuniversal working group. I look forward to hearing from stakeholders in working of the aisle and in the capital to find a solution hearing is looking toward the future of federal broad bid programs. I look fo the subcommittee, the gentle lady from california for five minutes. Thank you mr. Chair and i would like to welcome the witnesses who are here today. This is an issue that should be familiar to all members of the subcommittee. We had a version of this hearing before and we will need to keep having them and make sure all americans have equal access to this issue is also very personal to me although i have a large urban footprint in my district, i also have small towns t can literally tell me neighborhood by neighborhood but for and the request for service has fallen on deaf ears. Thankfully, congress acted and im more hopeful then i have ever been that we will be getting then the cand adoption efforts. This includes 42 billion for c deployment of new broaaddresses ment economics. Rural areas are more spread out and companies that are private cannot afford to deploy or operate a nethey dont provide the needed support to connect these residents. Is the single most powerful tool that we have to connect the unserved constituents. But it is imperative that we take a they are solvent. That is i am excited to join representative of and the Bipartisan Working Group to modernize the universal service fund. The usf is one of the most effective models of extending expanding connectivity, whether it is rural areas or schools to support telemedicine or low connecting americans. S however, without reform, usfs future is uncertain. Usf is the bedrock of a communication policy in the u. S. And it is imperative that we on solid footing. That is why the working group is so important. It shows that there are bipartisan, bicameral willingness to address these issues had on. I am excited that we will be joining the Ranking Members to advance this effort. And as we all know, usf isnt needswith broadband connection. Whether it is for the first time or if you need a little help making ends meet, this program is working. 21 million could lose connectivity. The funding is set to be completed early next year and they should know that this e he season in december. That is a present none of us constituents deserve to receive. And committed to doing everything i can to find Additional Support to give us time to find a lasting solution to sustain this. It is a Bipartisan Program that helps rural and urban families alike and must be continued. Am also looking forward to a meaningful discussion about Broadband Access and if it is not just access and affordability but also adoption. My Digital EquityFoundation Act for establishing a would channel public and private investments into Broadband Adoption efforts to close the Digital Divide. Not only because it is the right thing to do but because increased adoption means more broadband customers, which improves the Business Case for isp. So it is a vital leg of the conductivity and needs to be part of the discussion today. With that, and want to thank the witnesses for being here and look forward to the discussions and i yelled back. Thank you. The chair now recognizes the gentle lady from washington. Five minutes please. Thank you mr. Chairman. Welcome to the witnesses. Broadband conductivity is becoming essential for americans. People need to anticipate the bills and content of education and open a business or more. Get there are still so in my di eastern washington. Energy and commerce is committed to supporting policies that lead to better and faster Internet Access. Today, there are more than 130 federal broadband programsnding the programs in recent years which include the 65 billion for broadband deployment, affordability and adoption in the iija, as well as existing programs such as the universal service fund or usf. As resources are made available and new funding programs are considered, be assured of taxpayer dollars are not being wasted or duplicated. The usf for instance has helped Internet Service providers connect rural homes and healyea now with some the other programs working to achieve the same or similar goal, it is important that we evaluate the necessities of the usf and consider what it should support to ensure federal resources are achieving the intended purpose. And being duplicated. When we address those questions, we can turn to how we fund usf. Usf is funded by contributions from providers based on resources that are declining causing the contribution factor to increase. In fact, next quarter, the contribution factor will hit a new record. The cost ultimately increases the cost of services. This means that americans will soon see the highest ever usf fee on their phone bills. This is not sustainable. Consider the future of the usf. It is important that we develop a Stable Funding mechanism that meets the needs of conductivity program or acp, it is also important in the context of todays discussion this covid era program was supposed to be a temporary band aid to help families economically impacted by the pandemic that they connected to broadband. In congress, they made it permanent and has given it over 17 billion. That money will soon run out and we must consider the programs future. The program is in addition to the lifelong lifeline program, federal Subsidy Program under usf designed to ensure that low income americans can afford broadband and television service. Congress has a responsibility to make sure that these programs run effectively. And i do have questions about which program is however, to be consolidated or streamlined. And when a federal Subsidy Program for lowincome americans and what it should look like going forward. Analyzing duplicative spending, waste and fraud will make sure resources are using efficiently and serving as many people as possible. Otherwise, witamericans watch from a distance as technologies advance and kids will grow up without access to online Educational Resources and this part of Rural America will be left behind. As the Digital Economy booms and urban centers and across the globe. Todays hearing is an important step as we look to the future of Rural Broadband funding. All of us here share the same goal, ensuring conductivity for every american. This will improve life, strengthen the economy and to o discussion and i think the witnesses for being here. I yelled back. Thank you. The chair recognizes the Ranking Member of the full committee for five minutes. To work of the committee and congress to make highspeed Internet Service available and affordable to all americans. We took a major step in making this a reality as a bipartisan infrastructure lawno one on the side is investing to bring high speed, reliable and affordable internet to every american household. That is critical because 24 million households today lack Internet Service in rural and tribal areas are further behind the divide. Thanks to the bipartisan infrastructure law, National Telecommunications and Information Administration nta will begin to distribute more than 42 billion to all 50 states, d. C. And the u. S. Territories. This money will go first areas completely underserved. Communities the private market. These service will allow the community to grow their economies for the future and compete with areas that have had Broadband Access for years. Not technology in need of replacement in just a few years. Even when the transformational investments bring Internet Service to the most rural and remote areas of the country, of they simply cant afford it. This is particularly true in Rural America where a variety of factors often lead to higher prices and lower speed. Is troubling when we have a strong correlation between Broadband Availability and positive economic outcome. The availability of High Speed Broadband Network opens the door to higher employment and creates better environments for business. Actually signing up for the service and being able to afford each month is linked to higher incomes and lower poverty rates, civic and Community Engagement and enhancingeducational opportunities and better worker productivity. It is a bridge divide that conn communities and individuals with the opportunities for prosperity. The work to close the divide is not necessarily finished just because of these towers and other channels. The bipartisan infrastructure will address broadband affordability by creating the 14. 2 billion affordable conductivity program. This program is the largest and most Successful Program to address have seen. 21 million households benefit from the program almost equally and both in republican and democratic districts. And the fcc has reported that local households are signing up for the higher rates than urban households. We should all keep this in mind as we inch closer to the looming digital cliff of the affordable conductivity Program Running dry. The program has been so successful signing people up that it will run out of money sooner then we originally thought it would. To start sending 90 day shutoff notices to consumers as early as december, the height of the Holiday Season informing them that they will lose the benefit in the monthly internet bill will go up. For many, this is out of reach and we simply cannot allow this to happen. So i hope democrats and republicans can come together to replenish the fund this year so that the 21 million americans and all congressional dist opportunity and for those on the wrong end of the Digital Divide. We need to make sure the old communities have equal access to robust affordable Internet Service with the skills necessary to take advantage. I hope this is the beginning of a conversation about how the fcc universal service fund can continue to broach bridge the gaps in the country for years to come. I look forward to the opportunity to discussing the nations continued needs and the role that the usf program is playing and ensuring universal conductivity for all americans. I yelled back. Thank you. The gentleman yields back. That will conclude the Opening Statements from the members. We will now turn to the witnesses who are with us today. We have the president and ceo of u. S. Telecom, mr. Justin 40, Vice President for medco. Mr. Scott walton, president and senior fellow at the Technology Policy institute and sara witnesses to know that the timer light will when you have one minute remaining and will turn red when your time has expired. And you are now recognized for five minutes for Opening Statements. Thank you chairman and Ranking Members. Thank you for the invitation to join this really important conversation. And proud to be here on behalf of u. S. Telecom for the broadband association. The Diverse Membership brings us to the publicly traded companies to Regional Companies and coops. Many of which have rural roots that go back literally generations. Our members truly have been leaders in connecting Rural America so we appreciate the opportunity for putting our experience and perspective. This morning. Federal funding for Rural Broadband really is critical, particularly for remote areas or Broadband Service would otherwise not exist. These are sparsely populated parts of the country where the economics are terrain simply do not add up unless the private sector and the government Work Together shoulder to shoulder. A number of programs as used in this partnership. The chief among them is the universal service fund which includes funding to build and maintain login networks and connect Rural Americans with power and promise of broadband. The acp helps ensure that low income families throughout the country are able to benefit from highspeed conductivity and the ones in a Generation Program will b will help connect even more of the community. The question we have before us is how can our commitment to universal conductivity be secured and strengthened the es come for this body and they do not have obvious solutions. But this one does. And it comes first, until a lon solution is established to fund the acp, congress should find funding for the critical program. Today, nearly 21 million low income households in each and every one of the for Broadband Service. And it is now with existing funds likely depleting early next year. Second, there is absolutely no question that the current contribution system needs to be a lot of noise to make those universal conductivity goals. To start, congress should give the fcc the authority to expand usf contribution including Tech Companies that are the primary beneficiaries of the nations universal conductivity and not contribute to the fund. Broadening the base of u. S. Contributors in this way would minimize the burden on any one set of companies and by stabilizing the funds for the long term, the reform would ensure resources continue to be available and keep Rural Communities connected, helping to maintain and upgrade Critical Infrastructure over time for those who may universa i recently heard from one of our small broadband providers of edward u. S. Telecom and rural texas and without would increase roughly 20000 per customer 3000 per customer. Congress should ensure effective limitation of the program to scratch taxpayer dollars and connect to many unserved or underserved homes and businesses as possible. Permitting, minimizing burdensome rules, maximizing provider participation and prioritizing experienced providers, experience matters. Unlike government owned networks, private sector providers have a proven track record of successfully building and operating networks that bridge the Digital Divide. And i stated that this is a moment that matters u. S. Telecom and its members stand ready, willing and able to be constructive partners with the future of Rural Broadband. I am an optimist that we will get the job done and happy of course to t