Ma r. 30. 201 6 6: 03PM KENNY MARCHANT 24TH OISlRJCo, TflTON OFflCf : 2313 RAvsu~N House OFFi<:e Bu 1LOING W/\SHINGTON, DC 2061 6 (20l l 22~606 ll1STAICT OFFICE: $~0 1 El.ST VALLEY IV.NCH PAAKWA'I Sui"r£2060 IAVINB, TX 7606l (972) 55&-0162 I am writing to you regarding your March 8 announcement of plans to expand the Lifeline telephone subsidy to high-speed Internet access. Given the' problems with fraud and cost increases involved in an earlier expansion to cell phone service, this new step risks wasting American consumers' money, and also remains legally tenuous. I wrote to your predecessor, then-Chairman Julius Genachowski, in the fall of 2011 upon the FCC's announcing plans to shift Universal Ser\fice Fund (USF) resources into broadband Internet, i·esulting in what is now the Connect America Fund. My main concern at the time was that the FCC lacked statutory authority to cover Internet, then defined as an "information service," under the USF, which is limited by law to "telecommunications services." The definition change that FCC' s move required lacked any justifying change in circumstance, rendering the action suspect under long-standing principles of administrative law. Since then, the Connect America Fund has ballooned to over $1.8 billion por year to bring high­ speed Internet to underse.rved areas. Why is that not enough for the Commission? This new proposal to now add Internet to USF's Lifeline program will, in addition to still lacking clear authority, raise its costs from $1.S to $2.25 billion per year. How can the current fee structure that funds the USF on the backs of American consumers be maintained under this weight? Prior efforts to stop fraud in Lifeline uncovered the fact that 3 0 percent of its resources were .misused. This serves to show that the program is not fit for the proposed expansion. I strongly urge the FCC to reconsider the costs to the people whom it serves and to maintain tho USP within its originally intended range of services. Thank y~u for your review of this correspondence and I look forward to your reply. Should you . have any questions regarding this letter, please feel free to contact me, or my Legislative Assistant, · Robert Vega, at 202.225.6605 or robert.vega@mail.house.gov. Sincerely, Kenny Marchant Member of Congress PR I NTE~ ON AECYCLf l) f APEA 256