With the Universal Service Fund at or near its limit and a contribution factor above 34%, “it seems strange to be trying to expand E- rate without meaningful congressional reforms,” said Jonathan Cannon, R Street policy counsel-technology and innovation and a former acting adviser to Simington. Expanding E-rate also isn’t the most efficient way of closing the digital divide, he said: The FCC should “address existing programs before growing E- rate even further.”

With Congress considering USF revisions, “there’s real opportunity to address the chair’s concerns without exceeding the FCC’s existing authority,” Cannon said.