Donald Trump & FCC: Policy Shifts and Industry Influence

On January 20, 2025, Trump issued an order appointing Commissioner Brendan Carr as Chairman of the Federal Communications Commission (FCC).  

Carr’s Regulatory Agenda and Deregulation Efforts 

The FCC administers an approximately $9 billion-a-year program called the Universal Service Fund (USF), which has been funded by a line-item charge that traditional telephone companies add to consumers’ monthly bills. Expenditures from this fund subsidize rural broadband networks, low-income programs such as Lifeline, and connections for schools, libraries, and rural healthcare facilities. 

The FCC is planning a new effort to roll back regulations on the tech, media, and telecommunications industries. Carr detailed his broadband strategy in the chapter he contributed to Project 2025. Carr calls for a comprehensive review of FCC regulations and proposes the removal of those deemed excessive or overly complex.

Broadband Transparency Rules 

The FCC enforces a transparency rule for broadband providers, setting a strong precedent for Big Tech. The FCC’s rule requires broadband providers to disclose detailed information about practices that impact Internet traffic. 

Adopting a National Coordinating Strategy 

Hundreds of billions of infrastructure dollars have been allocated by Congress or budgeted by agencies in recent years to close the digital divide.  

The U.S. Government Accountability Office reports that federal broadband efforts lack a unified national strategy. Instead, more than 100 programs spread across 15 agencies create fragmentation and overlap, increasing the risk of overbuilding and inefficiencies. Many of these programs continue to struggle with inefficiency, leading to the misallocation of taxpayer dollars. 

Broadband Funding Cuts 

Broadband funding is at risk. In his Project 2025 chapter, Carr criticized infrastructure spending, calling it inefficient.   

The broadband spending policies pursued by the current Administration risk wasting taxpayer money while failing to deliver connectivity to rural communities and unserved Americans. 

Meanwhile, recent funding increases through the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act have provided the federal government with ample resources to achieve its broadband expansion goals.  

To ensure these funds are used effectively, Congress must hold agencies accountable and prioritize efficient broadband deployment nationwide. 

Targeting Broadband Funds to Unserved Communities 

Carr advocates for the next Administration to instruct various departments and agencies administering broadband infrastructure funds to direct those resources to communities “without adequate Internet infrastructure” instead of those that already have broadband connectivity. 

Take, for example, the final rules that the Treasury Department adopted in 2022 that govern the expenditure of $350 billion in ARPA funds. Instead of prioritizing rural and unserved communities lacking Internet access, the current Administration has allowed funds to be used for overbuilding existing high-speed networks in areas already served by multiple broadband providers.

A new Administration should stop using government funds to overbuild existing broadband networks. 

FCC Review of Broadband Programs

A new Administration needs to bring fresh oversight to this spending and put a national strategy in place to ensure that the federal government adopts a coordinated approach to its various broadband initiatives.  

The next Administration should direct the FCC to review its existing broadband programs, including the various components of the Universal Service Fund (USF), to eliminate inefficiencies and prevent duplication. 

>>> Read more: What Is Lifeline Benefit? Discover How It Can Save You Money

Concerns 

If funding is limited to areas with no Internet access at all, many people in regions with weak infrastructure will still be left behind. 

With the Affordable Connectivity Program (ACP) ending and little hope for renewed funding from Congress, restricting broadband spending solely to areas without existing infrastructure, while slashing USF to cut costs, could leave low-income consumers without essential access.  

Additionally, the Republican-controlled FCC’s broadband classification errors have created uncertainty about the effectiveness and implementation of the Lifeline program in addressing broadband affordability.