The FCC unanimously voted to completely overhaul the Universal Service Fund (“USF”) last Thursday, in a move that marks a historic change in policy for the Commission. Part of a telephone subsidy regime that stretches back to 1934, the USF was established in 1997 to help expand telephone service into rural areas. The funds from the program came from what amounted to a tax on telephone service, with the fund capped at $4.5 billion a year.

