The Benton Institute for Broadband & Society reports…
On May 11, 2026, President Trump signed the Rural Broadband Protection Act of 2025 (S. 98) into law. The new law requires the Federal Communications Commission (FCC or Commission) to screen applicants for high-cost universal service broadband funding before committing funds, and sets minimum financial penalties for applicants who default before receiving funding.
The example of need the author includes happened in Minnesota…
When the FCC ran the Rural Digital Opportunity Fund (RDOF)—a reverse auction that in 2020 initially awarded $9.23 billion to bring broadband to 5,220,833 locations in 49 states—the Commission largely assessed winning bidders’ qualifications after the auction was over, through a post-bid, “long-form” application process (a detailed post-auction filing in which winning bidders were required to demonstrate their qualifications). The result was a wave of defaults and denials that left roughly 1.9 million of those locations without the broadband service the FCC had promised RDOF would make possible.
The most prominent example: the FCC ultimately denied the program’s largest winning bidder, LTD Broadband, a Minnesota-based fixed wireless provider, which initially won $1.3 billion in RDOF awards, after concluding the company “was not reasonably capable of offering the required gigabit-speed, low-latency service throughout the broad areas where it won auction support.”1 That determination came only after the auction had closed and the award had been tentatively made.
The root of the change…
The Rural Broadband Protection Act is Congress’s answer. The law amends Section 254 of the Communications Act of 1934—the statutory foundation of the Universal Service Fund (USF)—by adding a new subsection (“m”) that requires the FCC to screen applicants before making awards, and to set minimum financial penalties for those who default before funding flows.