H.R. 2399: Rural Broadband Protection Act of 2025

This bill, titled the Rural Broadband Protection Act of 2025, aims to enhance the oversight of funding awarded through the high-cost universal service program for broadband infrastructure in rural areas. It proposes several key actions:

1. Introduction of a Vetting Process

The Federal Communications Commission (FCC) will be required to establish a vetting process for applicants seeking funding from the high-cost universal service program. This program is designed to support the deployment of broadband-capable networks in rural areas where access to high-speed internet is limited.

2. Definition of Terms

• Covered Funding: This refers to any new funding provided under the universal service program for deploying broadband networks and services.
• New Covered Funding Award: This refers to any funding award made based on applications submitted after the FCC implements the new vetting rules.

3. Commission Rulemaking Timeline

The FCC must initiate a rulemaking proceeding to create this vetting process within 180 days of the bill's enactment. This is intended to ensure the prompt establishment of guidelines for potential funding applicants.

4. Requirements for Applicants

To qualify for funding, applicants must demonstrate that they have:

• Technical capabilities to deploy the proposed network.
• Financial resources and operational capabilities to support the delivery of broadband services.
• A reasonable business plan that aligns with the performance expectations defined by the Commission.

5. Evaluation of Proposals

The FCC will evaluate applications against established technical, financial, and operational standards, as well as the applicant's history with similar funding programs. This aims to ensure that only qualified entities receive funding to build and maintain broadband networks.

6. Penalties for Violations

Furthermore, the FCC will impose penalties for failures in compliance with pre-authorization conditions. These penalties will include:

• A minimum penalty of $9,000 for each violation.
• Base forfeitures set at no less than 30% of the total support awarded to the applicant, unless the FCC justifies a need for lower penalties in specific situations.

Relevant Companies

• T (AT&T Inc.): As a major telecom provider, AT&T may be impacted by changes in competitive dynamics and funding opportunities due to this bill.
• VZ (Verizon Communications Inc.): Verizon, another leading telecommunications company, could face new qualifications and compliance requirements for obtaining federal funding.
• CMCSA (Comcast Corporation): As a broadband service provider, Comcast will need to navigate the vetting process to secure funding in rural areas.