USF Account Shifts to US Treasury, USAC Announces; Rosenworcel Knocks Move

The federal USF shift to the U.S. Treasury is moving ahead, with changes to the contribution and distribution processes happening Tuesday, Universal Service Administrative Co. emailed Monday. "Effective immediately, as of May 2018, USAC will accept payments to and distribute funds from the U.S. Treasury," said a USAC announcement on a web page where it said further transition updates will be posted. "We are taking this step to safeguard USF funds consistent with guidance from GAO and OMB. And we have made clear for months that the funds were going to be moved to the Treasury,” emailed an FCC spokesman.

FCC Commissioner Jessica Rosenworcel criticized the shift and the way it was made. "In the dark of night last week, without notice to my office or a Commission vote, the FCC began to move universal service funds to the US Treasury," said her emailed statement. "The agency forgoes over $50 million in annual interest income. That money could have been used to support rural broadband. It could have been used to support telemedicine in our most remote communities. And it could have been used to connect over half a million students with the connectivity they need in school. This is a shame.”

An FCC staffer said recently the agency planned to make the USF change from a bank to the Treasury by the end of April (see 1804030025).

USAC outlined contributions to USF under the new system. "Entities pay their USF April invoice (due May 15) using the current process," it said. "Beginning with the May invoice (due June 15), entities are required to pay their USF contributions using E-File, our online system. There are several changes to the process of paying your USF contributions. Most notably, USAC will no longer accept checks or wire transfers. USAC will accept Automated Clearing House (ACH) payments or credit/debit card. Additionally, payments must be made through USAC’s online E-File system."

For recipients of USF disbursements, "no changes are needed," USAC said. "In May, disbursements will come from the U.S. Treasury, continue to be made via ACH transfers, and continue to be identified as coming from USAC."