A creative solution to USF funding

The article "A Better Way to Fund USF" by John Horrigan and Blair Levin, posted on the Benton Institute for Broadband and Society website, discusses the challenges facing the funding of the Federal Communications Commission’s (FCC) Universal Service Fund (USF), which ensures affordable access to communications services. Currently, USF is funded by telecommunications service providers, but declining revenues have caused the contribution rate to increase, making the system unsustainable. Various alternatives have been proposed, such as using annual appropriations, taxing broadband, or assessing Big Tech, but these have limitations.

The authors suggest an alternative: taxing online gambling. They argue that online sports gambling is a growing problem in the U.S., especially among young men, and is projected to continue rising. By taxing this sector, the government could generate significant revenue without increasing the cost of broadband or complicating tax codes for Big Tech. The authors believe this proposal is politically viable and aligns with existing practices of taxing harmful behaviors like alcohol and cigarettes to fund beneficial programs. They advocate for this solution as a way to sustainably fund the USF while addressing a growing social issue.

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