Communications: universal service programs

The extension preserves state rate support intended to keep voice communications service affordable and available in rural and other high-cost areas. It takes effect immediately so the California Public Utilities Commission can account for the programs in its proposed 2027–28 budget.

What the law does ​

• Extends the California High-Cost Fund-A program through January 1, 2033, supporting eligible small rural telephone companies under rate-of-return regulation.
• Extends the California High-Cost Fund-B program through January 1, 2033, supporting telephone service in areas where providers’ costs exceed customer rates.
• Continues requirements that fund charges reasonably reflect the value of universal-service benefits to contributing entities and subscribers.
• Requires the commission to continue examining whether to reduce or eliminate Fund-B support in areas with demonstrated competition.

Who it affects ​

• Small independent rural telephone companies that serve as carriers of last resort.
• Telephone corporations serving high-cost areas.
• Telephone customers and entities that contribute to the high-cost funds.
• The California Public Utilities Commission.

Context ​

The programs would otherwise have expired on January 1, 2028.