[Congressional Record Volume 151, Number 69 (Monday, May 23, 2005)]
[Extensions of Remarks]
[Page E1063]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   PROTECTING THE UNIVERSAL SERVICE FUND FROM THE ANTIDEFICIENCY ACT

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                           HON. BARBARA CUBIN

                               of wyoming

                    in the house of representatives

                          Monday, May 23, 2005

  Mrs. CUBIN. Mr. Speaker, last fall, the Federal Communications 
Commission (FCC) concluded that some components of the Universal 
Service Fund (USF) are subject to the Antideficiency Act, even though 
USF dollars are not paid out of the U.S. Treasury. This unexpected 
interpretation disrupted an important component of the universal 
service program for nearly 6 months and resulted in the Universal 
Service Administrative Company losing millions of dollars in 
investments that would otherwise have been used to support 
communications services in rural and high cost areas, as well as the E-
Rate program for school districts and libraries.
  Congress intervened late last year by temporarily exempting the USF 
from the Antideficiency Act until December 31, 2005. That exemption 
will be expiring soon, and many believe the Antideficiency Act also 
threatens to disrupt the much larger High Cost and Low Income USF 
programs. It is vital that Congress address this issue as soon as 
possible to permanently eliminate the uncertainty hanging over the 
entire USF.
  That's why I am introducing legislation, along with Representative 
Gonzales, to permanently exempt the USF from the Antideficiency Act. 
This is a necessary step to ensure that consumers will continue to have 
access to quality telecommunications services and our schools and 
libraries will have Internet connectivity, all at affordable rates.
  This is a bipartisan initiative that enjoys support from a broad 
coalition of stakeholders in the telecommunications, high-tech, 
educational arenas, as well as local governments and public interest 
organizations. This is a companion measure to a bill introduced in the 
other body, which also has broad bipartisan support. Fixing the 
situation is a time-sensitive matter and Representative Gonzales and I 
urge our colleagues to support this measure and help us work toward 
prompt passage.

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