FCC proposes to reform the Universal Service "High-Cost" program for an all-IP era (NPRM, June 2026)
The FCC adopted a proposed rule (NPRM) to make the Universal Service Fund's "High-Cost" support mechanism — which sustains rural communications infrastructure — more efficient for an all-IP era.
Document overview (primary data)
- Document typeProposed rule
- AgencyFederal Communications Commission
- Citation91 FR 34201
Key points
- The FCC begins reforming the high-cost program (which supports rural network maintenance)
- Considers efficiency for the transition to all-IP networks
- NPRM stage — public comment is sought before anything is finalized
The Federal Communications Commission (FCC) adopted and published a Notice of Proposed Rulemaking (NPRM) to reform the high-cost program of the Universal Service Fund (USF).
The high-cost program is a pillar of U.S. universal service: it subsidizes carriers that serve sparsely populated, high-cost rural areas so that everyone can reach phone and broadband service. Many of its mechanisms were built around legacy copper telephone networks, but infrastructure is shifting from copper toward all-IP networks.
This NPRM proposes to remake the high-cost program into a more efficient and effective scheme suited to the all-IP era. The specific design will be worked out through public comment. An NPRM (Notice of Proposed Rulemaking) is a pre-decisional stage that invites broad comment before a rule is finalized.
[Why it matters] The high-cost program is central to U.S. rural broadband policy, and how its subsidies are allocated shapes rural network buildout. For those tracking U.S. telecom and infrastructure trends, this marks a turning point toward an all-IP basis.
Why it matters
Much of the universal-service subsidy was designed around copper telephone networks, so the all-IP shift makes a redesign of how the money is distributed unavoidable. This NPRM is the starting point of that shift and will shape which technologies and providers rural-broadband subsidies flow to. As a pre-decisional comment stage, the program design is still in motion.
FAQ
What is an NPRM?
Sources (primary)
Source: Federal Register (federal documents, public domain). Links go to the official site.