As we look ahead to the possibility of a Republican-led FCC under a second Trump administration, industry stakeholders should prepare for sweeping changes across various regulatory areas. From Universal Service Fund (USF) reform to net neutrality, mergers and acquisitions, and the future of Section 230, the Trump-era FCC could steer policy in new directions, particularly in areas affecting broadband access, telecom regulation, and emerging technologies. This advisory explores ten key potential policy shifts that are likely to emerge under Republican leadership at the FCC, with insights into how these changes might affect stakeholders across the telecommunications and technology sectors.

1. Modernizing the Universal Service Fund (USF) – Moving Toward a Sustainable Model

The USF, a crucial tool for ensuring equitable access to communications services, is expected to undergo significant reform under a Trump-led FCC, potentially with support from a Republican Congress. USF reform could focus on broadening the contributor base and adopting alternative funding models, with a shift away from relying solely on fees from broadband providers.

What Trump Could Mean for the USF:

Texas Senator Ted Cruz, poised to lead discussions on USF reform, has argued that instead of depending on broadband providers or large tech companies, the USF should be funded directly by Congressional appropriations. This would allow lawmakers to maintain greater oversight of broadband programs under the FCC. Cruz’s stance emphasizes transparency and accountability, pushing for a model that is more closely tied to legislative priorities.

Commissioners Carr and Simington have also advocated for expanding the base of contributors, possibly including content companies and digital advertisers benefiting from broadband infrastructure. This reform could potentially stabilize funding while also shifting control from the FCC to Congress, ensuring more oversight of how broadband subsidies are distributed.

2. Affordable Connectivity Program (ACP) – Challenges and Opportunities for Growth

The ACP, which provides subsidies for broadband access to low-income Americans, faces uncertainty under Republican leadership. While there is general Republican support for broadband expansion, funding the ACP could shift toward more market-driven solutions, such as public-private partnerships or state-level funding.

Key Considerations for ACP:

Senator Ted Cruz has expressed concern about the long-term viability of federal funding for the ACP and has suggested that private-sector partnerships may be better suited to support the program. Commissioner Carr has echoed this sentiment, advocating for a reduction in reliance on federal appropriations and instead looking to state-level initiatives or private contributions.

A Republican-led FCC could also push for a more efficient model that encourages private investment in broadband infrastructure while curbing unnecessary government spending.

3. FCC Enforcement Overhaul in Light of Recent Litigation

The Trump-era FCC could introduce significant changes to its enforcement processes, especially in light of the Jarkesy v. SEC ruling, which has raised constitutional concerns about the overreach of administrative agencies. This decision could prompt the FCC to adopt stricter due process standards, aligning with the Republican preference for limiting regulatory power.

Shifts in FCC Enforcement Practices:

Commissioners Carr and Simington have long advocated for enhanced due process protections, including more transparent enforcement mechanisms. They may push to streamline FCC enforcement, ensuring that respondents are afforded greater procedural safeguards. This could involve moving toward more formal adjudication processes, reducing regulatory burdens on businesses while ensuring constitutional rights are upheld.

4. Spectrum Allocation and Innovation – Balancing Competing Interests

As demand for spectrum continues to grow with the rise of 5G and emerging technologies, a Republican-led FCC is likely to prioritize market-driven spectrum allocation strategies. The focus will likely be on efficiency and flexibility to encourage private-sector innovation.

Spectrum Management under a Republican FCC:

Commissioner Carr has been a proponent of freeing up federal spectrum for commercial use, which could involve reallocating or sharing underused government spectrum with the private sector. This approach could promote faster 5G deployment and innovation. Additionally, Republicans may explore new auction mechanisms that incentivize broader participation and competition in the marketplace.

5. Net Neutrality – Revisiting Open Internet Principles

One of the most significant policy shifts under a Trump FCC would be a rollback of net neutrality protections. Republican commissioners, particularly Carr and Simington, have consistently opposed Title II regulations and would likely seek to reduce the regulatory burden on ISPs, shifting focus to investment and infrastructure growth.

Expected Changes to Net Neutrality:

A Republican FCC is expected to eliminate the Title II classification of broadband, which would effectively end the FCC’s authority to enforce net neutrality rules. This change could lead to greater flexibility for ISPs in how they manage networks, promoting investment in infrastructure to meet the growing demand for high-speed broadband.

6. Privacy and Data Protection – Streamlined Regulatory Approach

While privacy remains a high priority, the Republican approach to data protection is likely to be less prescriptive and more market-driven. A Trump-led FCC could revise CPNI rules and align them with broader federal privacy frameworks, aiming to reduce the regulatory burden on telecom companies while protecting consumers.

Key Privacy Considerations:

Republican commissioners have emphasized the importance of privacy protections but have expressed concerns over overly burdensome compliance rules. A streamlined, efficient regulatory framework would likely replace more stringent, prescriptive privacy requirements, aiming to strike a balance between consumer protection and industry innovation.

7. Preemption of State-Level VOIP Regulation

The Trump FCC could revisit the preemption of state-level regulation of VoIP services, following in the footsteps of the FCC’s Pulver.com Order, which restricted states’ ability to impose burdensome regulations on VoIP providers. With states like California revising their regulatory frameworks for VoIP services, the FCC could take action to preempt these changes, providing clarity and certainty for service providers.

VoIP Preemption Under a Republican-Led FCC:

Republican FCC leaders, such as Commissioners Carr and Simington, have historically supported minimizing state interference in the VoIP market. A new petition could seek preemption of California Public Utilities Commission (CPUC) changes to VoIP regulations, ensuring that federal authority is the primary framework governing advanced telecom technologies like VoIP.

8. Robocall Mitigation and the Role of Artificial Intelligence

Robocall mitigation remains a major priority for the FCC, but Republicans are likely to take a different approach to using Artificial Intelligence (AI) than their Democratic counterparts. While Democrats have generally supported strong regulatory measures, Republicans have advocated for more industry-driven solutions, including the use of AI to combat robocalls.

AI and Robocall Mitigation:

Republican commissioners have shown a strong interest in leveraging AI technology to identify and block illegal robocalls. Commissioner Carr, in particular, has pushed for enhanced use of AI to create more efficient, proactive solutions, contrasting with the more regulatory-focused approach favored by Democrats. Under a Republican FCC, the emphasis would likely be on empowering private industry to develop innovative AI-based technologies for robocall mitigation, with less direct government intervention.

9. FCC’s Stance on Mergers and M&A Activity

Under previous Republican-led FCCs, mergers and acquisitions (M&A) activity within the telecom sector has generally been supported, with the belief that consolidation can drive efficiencies and foster innovation. The Trump-era FCC could continue this trend, adopting a more lenient stance on mergers that supports business growth and market expansion.

Mergers and Acquisitions under a Trump FCC:

Republican FCC commissioners have historically been more favorable toward telecom M&A activity, often viewing consolidation as a means to streamline operations and foster competition. Under the Trump administration, we could see less regulatory scrutiny and more support for mergers that promise to drive technological innovation and broadband deployment.

10. Section 230 – Reining in Big Tech

Section 230, which shields internet companies from liability for user-generated content, is a key target for Republican reform under Trump. In his Project 2025 policy proposal, Commissioner Carr called for the elimination of Section 230 protections for tech companies, advocating for greater accountability for platforms that host user content.

Republican Position on Section 230:

Carr’s chapter in Project 2025 outlines a conservative vision for the future of the FCC, emphasizing the need to curtail Big Tech’s power. He proposes eliminating Section 230 protections, requiring internet companies to contribute to the USF, and expanding the list of companies deemed a security threat. This could mark a significant shift in how the FCC approaches internet platforms, with potential implications for content moderation, platform liability, and the role of the FCC in overseeing tech giants.

Conclusion

As the prospect of a Republican-led FCC under a Trump administration looms, industry stakeholders must anticipate a range of regulatory changes that could reshape the telecommunications and technology landscapes. From USF reform and the future of net neutrality to VoIP regulation and Section 230, these ten policy shifts represent a conservative vision for the future of the FCC. Proactive engagement with these issues will be essential for businesses to navigate the potential challenges and opportunities that lie ahead.

For further insights into these anticipated developments and how they might affect your organization, please reach out to us for tailored guidance.