Modernizing Suspension and Debarment Rules

Legal Status This site displays a prototype of a “Web 2.0” version of the daily
Federal Register. It is not an official legal edition of the Federal
Register, and does not replace the official print version or the official
electronic version on GPO’s govinfo.gov.

The documents posted on this site are XML renditions of published Federal
Register documents. Each document posted on the site includes a link to the
corresponding official PDF file on govinfo.gov. This prototype edition of the
daily Federal Register on FederalRegister.gov will remain an unofficial
informational resource until the Administrative Committee of the Federal
Register (ACFR) issues a regulation granting it official legal status.
For complete information about, and access to, our official publications
and services, go to About the Federal Register on NARA's archives.gov.

The OFR/GPO partnership is committed to presenting accurate and reliable
regulatory information on FederalRegister.gov with the objective of
establishing the XML-based Federal Register as an ACFR-sanctioned
publication in the future. While every effort has been made to ensure that
the material on FederalRegister.gov is accurately displayed, consistent with
the official SGML-based PDF version on govinfo.gov, those relying on it for
legal research should verify their results against an official edition of
the Federal Register. Until the ACFR grants it official status, the XML
rendition of the daily Federal Register on FederalRegister.gov does not
provide legal notice to the public or judicial notice to the courts.

Legal Status

Proposed Rule

Modernizing Suspension and Debarment Rules

A Proposed Rule by the Federal Communications Commission on 04/09/2026

• 1.

1.
This document has a comment period that ends in 60 days.
(06/08/2026) View Comment Instructions

Thank you for taking the time to create a comment. Your input is important.

Once you have filled in the required fields below you can preview and/or submit your comment to the Federal Communications Commission for review. All comments are considered public and will be posted online once the Federal Communications Commission has reviewed them.

You can view alternative ways to comment or you may also comment via Regulations.gov at /documents/2026/04/09/2026-06863/modernizing-suspension-and-debarment-rules.

It appears that you have attempted to comment on this document before
so we've restored your progress.
Start over.
1.
2. Comment * What is your comment about? Upload File(s) Note: You can attach your comment as a file and/or attach supporting
documents to your comment. Attachment Requirements.

Email this will NOT be posted on regulations.gov

Opt to receive email confirmation of submission and tracking number? Tell us about yourself! I am... * An Individual An Organization Anonymous First Name * Last Name * City Region State Alabama Alaska American Samoa Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Florida Georgia Guam Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Puerto Rico Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virgin Islands Virginia Washington West Virginia Wisconsin Wyoming Zip Country Afghanistan Åland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia, Plurinational State of Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Christmas Island Cocos (Keeling) Islands Colombia Comoros Congo Congo, the Democratic Republic of the Cook Islands Costa Rica Côte d'Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands (Malvinas) Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See (Vatican City State) Honduras Hong Kong Hungary Iceland India Indonesia Iran, Islamic Republic of Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Korea, Democratic People's Republic of Korea, Republic of Kuwait Kyrgyzstan Lao People's Democratic Republic Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Macao Macedonia, the Former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia, Federated States of Moldova, Republic of Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palau Palestine, State of Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Réunion Romania Russian Federation Rwanda Saint Barthélemy Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Martin (French part) Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten (Dutch part) Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan, Province of China Tajikistan Tanzania, United Republic of Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States United States Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela, Bolivarian Republic of Viet Nam Virgin Islands, British Virgin Islands, U.S. Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe Phone Organization Type * Company Organization Federal State Local Tribal Regional Foreign U.S. House of Representatives U.S. Senate Organization Name * You are filing a document into an official docket. Any personal
information included in your comment text and/or uploaded
attachment(s) may be publicly viewable on the web. I read and understand the statement above.

2. Preview Comment Please review the Regulations.gov privacy notice and user notice.
3. Document Details Published Content - Document Details Agency Federal Communications Commission Agency/Docket Numbers GN Docket No. 19-309 FCC 26-18 FR ID 339027 CFR 2 CFR 6001 47 CFR 54 47 CFR 64 Document Citation 91 FR 17888 Document Number 2026-06863 Document Type Proposed Rule Pages 17888-17893 (6 pages) Publication Date 04/09/2026 Published Content - Document Details

• PDF Official Content
  • View printed version (PDF) Official Content
• Document Details Published Content - Document Details Agency Federal Communications Commission Agency/Docket Numbers GN Docket No. 19-309 FCC 26-18 FR ID 339027 CFR 2 CFR 6001 47 CFR 54 47 CFR 64 Document Citation 91 FR 17888 Document Number 2026-06863 Document Type Proposed Rule Pages 17888-17893 (6 pages) Publication Date 04/09/2026 Published Content - Document Details
• Document Dates Published Content - Document Dates Comments Close 06/08/2026 Effective Date 2026-05-11 Dates Text Comments are due on or before May 11, 2026 and reply comments are due on or before June 8, 2026. Published Content - Document Dates

• Table of Contents Enhanced Content - Table of Contents This table of contents is a navigational tool, processed from the
  headings within the legal text of Federal Register documents.
  This repetition of headings to form internal navigation links
  has no substantive legal effect.

  • AGENCY:
  • ACTION:
  • SUMMARY:
  • DATES:
  • ADDRESSES:
  • FOR FURTHER INFORMATION CONTACT:
  • SUPPLEMENTARY INFORMATION:
  • Introduction
  • Further Notice of Proposed Rulemaking
  • Additional Safeguards
  • Additional Covered Programs
  • Future Programs
  • Initial Regulatory Flexibility Analysis
  • Need for, and Objectives of, the Proposed Rules
  • Legal Basis
  • Description and Estimate of the Number of Small Entities to Which the Proposed Rules Will Apply
  • Description of Economic Impact and Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities
  • Discussion of Significant Alternatives Considered That Minimize the Significant Economic Impact on Small Entities
  • Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules Enhanced Content - Table of Contents

• Related Documents Enhanced Content - Related Documents FederalRegister.gov uses the agency dockets published with the document to display related documents.

| GN Docket No. 19-309
(3 Documents) | | | |
| --- | | | |
| Date | | Action | Title |
| | 2026-04-09 | Proposed rule. | Modernizing Suspension and Debarment Rules |
| | 2026-04-09 | Final rule. | Modernizing Suspension and Debarment Rules |
| | 2020-01-14 | Proposed rule. | Modernizing Suspension and Debarment |

| FCC 26-18
(2 Documents) | | | |
| --- | | | |
| Date | | Action | Title |
| | 2026-04-09 | Proposed rule. | Modernizing Suspension and Debarment Rules |
| | 2026-04-09 | Final rule. | Modernizing Suspension and Debarment Rules |

Enhanced Content - Related Documents

• Public Comments Enhanced Content - Public Comments Comments are being accepted - View Comment Instructions.

Enhanced Content - Public Comments
- Regulations.gov Data Enhanced Content - Regulations.gov Data Additional information is not currently available for this document.

Enhanced Content - Regulations.gov Data

- Sharing Enhanced Content - Sharing Shorter Document URL https://www.federalregister.gov/d/2026-06863 Email Email this document to a friend Enhanced Content - Sharing

• Print Enhanced Content - Print
  • Print this document Enhanced Content - Print
• Other Formats Enhanced Content - Other Formats This document is also available in the following formats:

JSON Normalized attributes and metadata XML Original full text XML MODS Government Publishing Office metadata More information and documentation can be found in our developer tools pages.

Enhanced Content - Other Formats
- Public Inspection Public Inspection This PDF is FR Doc. 2026-06863 as it appeared on Public Inspection on
04/08/2026 at 8:45 am.

It was viewed
41
times while on Public Inspection.

If you are using public inspection listings for legal research, you
should verify the contents of the documents against a final, official
edition of the Federal Register. Only official editions of the
Federal Register provide legal notice of publication to the public and judicial notice
to the courts under 44 U.S.C. 1503 & 1507. Learn more here.

Public Inspection
Published Document: 2026-06863 (91 FR 17888) This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Document Headings Document headings vary by document type but may contain
the following:

1. the agency or agencies that issued and signed a document
2. the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to
3. the agency docket number / agency internal file number
4. the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details.

Federal Communications Commission

1. 2 CFR Part 6001
2. 47 CFR Parts 54 and 64
3. GN Docket No. 19-309; FCC 26-18; FR ID 339027 # AGENCY:

Federal Communications Commission.

ACTION:

Proposed rule.

SUMMARY:

In this document, the Federal Communications Commission (Commission) proposes additional safeguards to protect against waste, fraud, and abuse, including additional mandatory reporting requirements, and proposes to extend the Commission's suspension and debarment framework to additional programs. A Final Rule relating to the Commission's adoption of revised suspension and debarment rules is published elsewhere in this issue of the Federal Register.

DATES:

Comments are due on or before May 11, 2026 and reply comments are due on or before June 8, 2026.

ADDRESSES:

Pursuant to §§ 1.415 and 1.419 of the Commission's rules, 47 CFR 1.415, 1.419, interested parties may file comments and reply comments on or before the dates provided in the DATES section above. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS). See Electronic Filing of Documents in Rulemaking Proceedings, 63 FR 24121 (1998). You may submit comments, identified by GN Docket No. 19-309, by any of the following methods:

• Electronic Filers: Comments may be filed electronically using the internet by accessing the ECFS: https://www.fcc.gov/​ecfs.
• Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing.
• Filings can be sent by hand or messenger delivery, by commercial courier, or by the U.S. Postal Service. All filings must be addressed to the Secretary, Federal Communications Commission.
• Hand-delivered or messenger-delivered paper filings for the Commission's Secretary are accepted between 8:00 a.m. and 4:00 p.m. by the FCC's mailing contractor at 9050 Junction Drive, Annapolis Junction, MD 20701. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes and boxes must be disposed of before entering the building.
• Commercial courier deliveries (any deliveries not by the U.S. Postal Service) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701. Filings sent by U.S. Postal Service First-Class Mail, Priority Mail, and Priority Mail Express must be sent to 45 L Street NE, Washington, DC 20554.
• People With Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530.

FOR FURTHER INFORMATION CONTACT:

Paula Silberthau, Attorney Advisor, Office of General Counsel, 202-418-1874, paula.silberthau@fcc.gov.

SUPPLEMENTARY INFORMATION:

This is a summary of the Commission's Further Notice of Proposed Rulemaking (FNPRM) in GN Docket No. 19-309, FCC 26-18, adopted on March 26, 2026, and released on March 27, 2026. The complete text of this document is available for download at https://docs.fcc.gov/​public/​attachments/​FCC-26-18A1.pdf. Alternative formats are available for people with disabilities (Braille, large print, electronic files, audio format) by sending an email to fcc504@fcc.gov or calling the Commission's Consumer and Government Affairs Bureau at (202) 418-0503.

Ex Parte Presentations. The proceeding this document initiates shall be treated as a “permit-but-disclose” proceeding in accordance with the Commission's ex parte rules. Persons making ex parte presentations must file a copy of any written presentation or a memorandum summarizing any oral presentation within two business days after the presentation (unless a different deadline applicable to the Sunshine period applies). Persons making oral ex parte presentations are reminded that memoranda summarizing the presentation must (1) list all persons attending or otherwise participating in the meeting at which the ex parte presentation was made, and (2) summarize all data presented and arguments made during the presentation. If the presentation consisted in whole or in part of the presentation of data or arguments already reflected in the presenter's written comments, memoranda or other filings in the proceeding, the presenter may provide citations to such data or arguments in his or her prior comments, memoranda, or other filings (specifying the relevant page and/or paragraph numbers where such data or arguments can be found) in lieu of summarizing them in the memorandum. Documents shown or given to Commission staff during ex parte meetings are deemed to be written ex parte presentations and must be filed consistent with rule 1.1206(b). In proceedings governed by rule 1.49(f) or for which the Commission has made available a method of electronic filing, written ex parte presentations and memoranda summarizing oral ex parte presentations, and all attachments thereto, must be filed through the electronic comment filing system available for that proceeding, and must be filed in their native format (e.g.,.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding should familiarize themselves with the Commission's ex parte rules.

Regulatory Flexibility Act. The Regulatory Flexibility Act of 1980, as amended (RFA) requires that an agency prepare a regulatory flexibility analysis for notice and comment rulemakings, unless the agency certifies that “the rule will not, if promulgated, have a significant economic impact on a substantial number of small entities.” Accordingly, the Commission has prepared an Initial Regulatory Flexibility Analysis (IRFA) concerning the possible/potential impact of rule and policy proposals on small entities in the FCC document. The IRFA is found below and in Appendix C of the Commission's Further Notice of Proposed Rulemaking. The Commission invites the general public, particularly small businesses, to comment on the IRFA. Comments must be filed by the deadlines for comments on the Notice of ( printed page 17889) Proposed Rulemaking indicated on the first page of this document and must have a separate and distinct heading designating them as responses to the IRFA.

Paperwork Reduction Act. This document contains proposed new or modified information collection requirements. The Commission, as part of its continuing effort to reduce paperwork burdens, will invite the general public to comment on the information collection requirements contained in this Notice of Proposed Rulemaking as required by the Paperwork Reduction Act of 1995, Public Law 104-13. In addition, pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4), the Commission seeks specific comment on how it might further reduce the information collection burden for small business concerns with fewer than 25 employees.

Providing Accountability Through Transparency Act: Consistent with the Providing Accountability Through Transparency Act, Public Law 1189-9, a summary of the Notice of Proposed Rulemaking will be available at https://www.fcc.gov/​proposed-rulemakings.

Introduction

The Federal Communications Commission (FCC or Commission) administers several congressionally-mandated programs, such as the Universal Service Fund (USF) and the Telecommunications Relay Services (TRS) program, that provide significant funding to close the digital divide and ensure that all Americans have access to communications services. In administering these important programs, it is incumbent upon the Commission to be a good steward of these funds, which are ultimately paid for by the American people. We must ensure that these limited dollars serve their intended purposes. Waste, fraud, and abuse frustrate the Commission's goals and undermines public trust in these programs. Bad actors who would seek to enrich themselves by siphoning these critical resources away from connecting rural households and businesses, schools and libraries, rural healthcare providers, low-income households, and people with disabilities have no place in these programs. As such, in a companion Report and Order, we adopted additional, critical tools which will allow us to promptly and efficiently take action to exclude or otherwise limit bad actors' participation in these programs. These changes, which received widespread support in the record, will align our processes with other agencies, incorporate current fraud prevention best practices, and, ultimately, distribute funds more responsibly.

In the Further Notice of Proposed Rulemaking, we propose to update existing information collection mechanisms for affected programs to include a new certification that applicable program participants have read and complied with the rules we adopt in the Report and Order. We also seek comment on additional safeguards to enhance accountability. We also seek comment on whether applying the new rules to the Commission's Secure and Trusted Communications Networks Reimbursement Program (also referred to as the Supply Chain Reimbursement Program or, colloquially, Rip-and-Replace) to subsidize smaller carriers to remove and replace certain equipment that poses an unacceptable risk to the national security of the United States, as well as to any future USF or TRS programs or National Deaf-Blind Equipment Distribution Program (NDBEDP) or similar financial assistance programs, will improve the sustainability of their funding for the benefit of those whom the programs serve.

Further Notice of Proposed Rulemaking

Additional Safeguards

In this Further Notice of Proposed Rulemaking, we seek comment on additional safeguards that could be added to the suspension and debarment framework adopted by the Report and Order. Specifically, we propose to update existing information collection mechanisms for affected programs to include a new certification that applicable program participants have read and complied with the rules we adopt in the Report and Order. We expect that this proposal will help streamline the implementation of the Guidelines and supplemental rules and decrease the potential for waste, fraud, and abuse by prompting participants to both familiarize themselves, and comply, with the adopted rules and providing additional tools to remedy noncompliance. We anticipate this approach to pose little additional burden given that those participating in Commission programs are already responsible for complying with the rules relating to those programs and this approach could help increase awareness of Commission rules among entities that might not otherwise conduct business before the Commission. We seek comment on this proposal and the benefits or burdens it may create, particularly as to any adjustments to alleviate any potential burden on small entities.

We also propose adopting a mandatory disclosure requirement that would provide the agency with additional information concerning threats to program integrity, and other forms of waste, fraud, and abuse in our programs. Specifically, we propose to adopt the mandatory disclosure provision from OMB's Uniform Guidance for Federal Financial Assistance that would require any “applicant, recipient, or subrecipient of a Federal award [to] promptly disclose whenever . . . it has credible evidence of the commission of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations” in connection with the award of Federal funds. 2 CFR 200.113. This provision would require applicants and recipients—often the first to learn of potential waste, fraud, and abuse—to proactively alert both the agency and the Office of the Inspector General (OIG) of any such credible evidence. We propose adoption of this requirement and propose modifications to the program certifications to require applicants and recipients to demonstrate their compliance with the provision when participating in our programs. We tentatively conclude that adoption of this requirement would better ensure program participants are actively assisting the agency in deterring and addressing waste, fraud, and abuse in its programs, and we seek comment on this proposal.

Finally, we also seek comment on any additional safeguards, such as additional certifications, appointment of compliance officers in connection with any compliance plan, or other steps that the Commission may take to enhance its ability to promote greater accountability and policing among persons receiving financial assistance from Commission programs.

Additional Covered Programs

As discussed briefly above, in 2020, the Commission established the Supply Chain Reimbursement Program (SCRP) to subsidize smaller carriers to remove and replace certain equipment that poses an unacceptable risk to the national security of the United States. Although reimbursements are funded by a separate appropriation, the program is designed in part to prohibit Universal Service Fund support from being used for equipment and services which pose a threat to national security. Over the past six years, the Commission has processed over 50,000 claims for reimbursement and has approved approximately $1.3 billion in ( printed page 17890) disbursements to recipients. As the Suspension and Debarment NPRM preceded the creation of the SCRP, we did not seek comment on its inclusion as a covered program for the purposes of suspension and debarment.

We recognize that the Secure Networks Act provided for a debarment-like remedy in the SCRP. Specifically, “[a]ny person or entity that violates the Reimbursement Program rules will also be banned from further participation in the [SCRP], and the person or entity may also be barred from participating in other Commission programs, including Universal Service support programs.” We seek comment on whether we should nonetheless extend the suspension and debarment rules we adopt today to this program, and if so, how extension of the suspension and debarment rules adopted in the Report and Order would support this program-specific statutory requirement. We also seek comment on any implementation issues, including whether there should be any program-specific changes as to how these rules are applied in the context of the SCRP, such as the definitions of primary and lower tier participants for those programs or the disclosure requirements.

Future Programs

The Report and Order applies the suspension and debarment framework to the USF programs (including High-Cost, E-Rate, Lifeline, and Rural Health Care), TRS and NDBEDP. On occasion, the Commission establishes new support programs—funded by similar mechanisms and designed to mirror existing programs—including new models of High-Cost, pilot programs to evaluate future modifications to universal service, and modernized forms of TRS. To the extent the Commission creates new universal service programs, including additional forms of high cost support or additional pilot programs, or authorizes new forms of TRS or NDBEDP in the future, we propose that any such program will be governed by default by the suspension and debarment framework adopted in the Report and Order. We tentatively conclude that a default application of the suspension and debarment rules to any future USF or TRS programs or NDBEDP or similar financial assistance programs will improve the sustainability of their funding for the benefit of those whom the programs serve. Given the anticipated similarities between any future USF or TRS program and those currently in effect, we do not expect any significant burden on program participants if the suspension and debarment rules were also extended to these similarly-designed programs. We further anticipate that, to the extent that modifications for a specific program are appropriate, the Commission can consider such customization in adopting program-specific rules. We seek comment on this proposal.

Initial Regulatory Flexibility Analysis

As required by the Regulatory Flexibility Act of 1980, as amended (RFA), the Federal Communications Commission (Commission) has prepared this Initial Regulatory Flexibility Analysis (IRFA) of the policies and rules proposed in the Further Notice of Proposed Rulemaking (FNPRM) assessing the possible significant economic impact on a substantial number of small entities. The Commission requests written public comments on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadlines for comments specified on the first page of the FNPRM. The Commission will send a copy of the FNPRM, including this IRFA, to the Chief Counsel for the Small Business Administration (SBA) Office of Advocacy.

Need for, and Objectives of, the Proposed Rules

The rules we propose in the Further Notice seek to revise the Commission's rules to include a certification requirement to transactions for the four USF programs (including High-Cost programs), the TRS program, and the NDBEDP, which are the Commission's primary permanent nonprocurement programs, as well as to other programs (collectively Covered Programs) to reflect that persons participating in those programs have read and agree to comply with the rules that the Commission adopted in its Report and Order above. The proposed certification could increase the likelihood that those receiving financial assistance from FCC-administered programs will be responsible stewards of these funds.

Additionally, we propose to adopt the mandatory disclosure provision from the Office of Management and Budget's (OMB) Uniform Guidance for Federal Financial Assistance that would require applicants and recipients to proactively alert both the agency and the Office of the Inspector General (OIG) of any credible evidence of fraud in our programs. We also seek comment on whether to extend the suspension and debarment framework to the Supply Chain Reimbursement Program, as well as to any new universal service programs or modernized forms of TRS or NDBEDP the Commission may adopt in the future.

Legal Basis

The proposed action is authorized pursuant to sections 1, 2, 4, 218, 225, 254, 403, 616, and 620 of the Communications Act of 1934, as amended, section 7402, Title VII of the American Rescue Plan Act 2021, Public Law 117-2, 135 Stat. 4 (2021), and Section 904 of Division N, Title IX of the Consolidated Appropriations Act, 2021, Public Law 116-260, 134 Stat. 1182, as amended by section 60502 of Division F, Title V of the Infrastructure Investment and Jobs Act, Public Law 117-58, 135 Stat. 429 (2021), 47 U.S.C. 151, 152, 154, 218, 225, 254, 403, 616, and 620.

Description and Estimate of the Number of Small Entities to Which the Proposed Rules Will Apply

The RFA directs agencies to provide a description of and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted. The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” In addition, the term “small business” has the same meaning as the term “small business concern” under the Small Business Act. A “small business concern” is one which: (1) is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA. The SBA establishes small business size standards that agencies are required to use when promulgating regulations relating to small businesses; agencies may establish alternative size standards for use in such programs, but must consult and obtain approval from SBA before doing so.

Our actions, over time, may affect small entities that are not easily categorized at present. We therefore describe three broad groups of small entities that could be directly affected by our actions. In general, a small business is an independent business having fewer than 500 employees. These types of small businesses represent 99.9% of all businesses in the United States, which translates to 34.75 million businesses. Next, “small organizations” are not-for-profit enterprises that are independently owned and operated and not dominant in their field. While we do not have data regarding the number of non-profits that meet that criteria, over 99 percent of nonprofits have fewer than 500 employees. Finally, “small governmental jurisdictions” are defined as cities, counties, towns, townships, ( printed page 17891) villages, school districts, or special districts with populations of less than fifty thousand. Based on the 2022 U.S. Census of Governments data, we estimate that at least 48,724 out of 90,835 local government jurisdictions have a population of less than 50,000.

The rules proposed in the FNPRM will apply to small entities in the industries identified in the chart below by their six-digit North American Industry Classification System (NAICS) codes and corresponding SBA size standard. Based on currently available U.S. Census data regarding the estimated number of small firms in each identified industry, we conclude that the proposed rules will impact a substantial number of small entities. Where available, we also provide additional information regarding the number of potentially affected entities in the industries identified below.

| Regulated industry
(footnotes specify potentially affected entities within

a regulated industry where applicable) | NAICS code | SBA size standard | Total firms | Total
small firms | % Small
firms |
| --- | --- | --- | --- | --- | --- |
| Telephone Apparatus Manufacturing | 334210 | 1,250 employees | 155 | 136 | 87.74 |
| Radio and Television Broadcasting and Wireless Communications Equip Manufacturing | 334220 | 1,250 employees | 155 | 136 | 87.74 |
| Other Communications Equipment Manufacturing | 334290 | 800 employees | 310 | 294 | 94.84 |
| Software Publishers | 513210 | $47 million | 16,824 | 12,148 | 72.21 |
| Wired Telecommunications Carriers | 517111 | 1,500 employees | 3,403 | 3,027 | 88.95 |
| Wireless Telecommunications Carriers (except Satellite) | 517112 | 1,500 employees | 1,184 | 1,081 | 91.30 |
| Telecommunications Resellers | 517121 | 1,500 employees | 955 | 847 | 88.69 |
| Satellite Telecommunications | 517410 | $44 million | 332 | 195 | 58.73 |
| All Other Telecommunications | 517810 | $40 million | 1,673 | 1,007 | 60.19 |
| Libraries and Archives | 519210 | $21 million | 2,030 | 1,891 | 93.15 |
| Custom Computer Programming Services | 541511 | $34 million | 63,144 | 46,196 | 73.16 |
| Information Technology Value Added Resellers (Exception) | 541519 | 150 employees | 11,570 | 8,182 | 70.72 |
| Other Computer Related Services (Except Information Technology Value Added Resellers) | 541519 | $34 million | 11,570 | 8,152 | 70.46 |
| Administrative Management and General Management Consulting Services | 541611 | $24.5 million | 10,1761 | 69,836 | 68.63 |
| Marketing Consulting Services | 541613 | $19 million | 50,507 | 34,127 | 67.57 |
| Other Management Consulting Services | 541618 | $19 million | 10,446 | 6,383 | 61.10 |
| Schools | 611110 | $20 million | 14,088 | 14,087 | 99.99 |
| Offices of Physicians Except Mental Health Specialists | 621111 | $16 million | 138,120 | 104,486 | 75.65 |
| Offices of Physicians—Mental Health Specialists | 621112 | $13.5 million | 11,973 | 8,376 | 69.96 |
| Offices of Dentists | 621210 | $9 million | 121,011 | 105,588 | 87.25 |
| Offices of Chiropractors | 621310 | $9 million | 38,673 | 30,425 | 78.67 |
| Offices of Optometrists | 621320 | $9 million | 18,582 | 16,425 | 88.39 |
| Offices of Mental Health Practitioners Except Physicians | 621330 | $9 million | 39,395 | 30,210 | 76.68 |
| Offices of Physical Occupational & Speech Therapists & Audiologists | 621340 | $12.5 million | 31,682 | 25,139 | 79.35 |
| Offices of Podiatrists | 621391 | $9 million | 6,546 | 5,737 | 87.64 |
| Offices of All Other Miscellaneous Health Practitioners | 621399 | $10 million | 29,775 | 18,206 | 61.15 |
| Family Planning Centers | 621410 | $19 million | 1,671 | 1,238 | 74.09 |
| Outpatient Mental Health and Substance Abuse Centers | 621420 | $19 million | 9,647 | 6,837 | 70.87 |
| HMO Medical Centers | 621491 | $44.5 million | 56 | 25 | 44.64 |
| Kidney Dialysis Centers | 621492 | $47 million | 516 | 367 | 71.12 |
| Freestanding Ambulatory Surgical and Emergency Centers | 621493 | $19 million | 6,092 | 4,544 | 74.59 |
| All Other Outpatient Care Centers | 621498 | $25.5 million | 8,942 | 7,160 | 80.07 |
| Medical Laboratories | 621511 | $41.5 million | 4,527 | 3,525 | 77.87 |
| Diagnostic Imaging Centers | 621512 | $19 million | 4,717 | 3,537 | 74.98 |
| Home Health Care Services | 621610 | $19 million | 27,774 | 20,724 | 74.62 |
| Ambulance Services | 621910 | $22.5 million | 3,002 | 2,436 | 81.15 |
| Blood and Organ Banks | 621991 | $40 million | 371 | 258 | 69.54 |
| All Other Miscellaneous Ambulatory Health Care Services | 621999 | $20.5 million | 7,270 | 5,794 | 79.70 |
| General Medical and Surgical Hospitals | 622110 | $47 million | 2,280 | 501 | 21.97 |
| Psychiatric and Substance Abuse Hospitals | 622210 | $47 million | 403 | 134 | 33.25 |
| Specialty Hospitals—Except Psychiatric and Substance Abuse | 622310 | $47 million | 280 | 92 | 32.86 |
| Emergency and Other Relief Services | 624230 | $41.5 million | 714 | 514 | 71.99 |

| 2024 Universal service monitoring report telecommunications service provider data
(data as of December 2023) | SBA size standard
(1,500 employees) | | |
| --- | --- | | |
| Affected entity | Total number
FCC form

499A filers | Small firms | % Small
entities |
| Incumbent Local Exchange Carriers (Incumbent LECs) | 1,175 | 917 | 78.04 |
| Interexchange Carriers (IXCs) | 113 | 95 | 84.07 |
| Local Resellers | 222 | 217 | 97.75 |
| ( printed page 17892) | | | |
| Operator Service Providers (OSPs) | 22 | 22 | 100 |
| Paging & Messaging | 59 | 59 | 100.00 |
| Toll Resellers | 411 | 398 | 96.84 |
| Telecommunications Resellers | 633 | 615 | 97.16 |
| Wired Telecommunications Carriers | 4,682 | 4,276 | 91.33 |
| Wireless Telecommunications Carriers (except Satellite) | 585 | 498 | 85.13 |
| Wireless Telephony | 326 | 247 | 75.77 |

| Affected entity | Number receiving
E-Rate funding
commitments |
| --- | --- |
| Schools | 101,522 |
| Libraries | 11,671 |

Description of Economic Impact and Projected Reporting, Recordkeeping, and Other Compliance Requirements for Small Entities

The RFA directs agencies to describe the economic impact of proposed rules on small entities, as well as projected reporting, recordkeeping and other compliance requirements, including an estimate of the classes of small entities which will be subject to the requirements and the type of professional skills necessary for preparation of the report or record.

In the FNPRM, the Commission seeks comment on its proposal to establish further protections to the suspension and debarment framework adopted by the Report and Order. We propose that applicable program participants certify that they have read and complied with the rules adopted in the Report and Order. To achieve this, we propose updating the existing information collection mechanisms for affected programs. The Commission also seeks comment on additional safeguards, including additional certifications, appointment of compliance officers in connection with any compliance plan, or other steps that the Commission may take to enhance its ability to promote greater accountability and policing among persons receiving financial assistance from Commission programs. Specifically, we propose to adopt the mandatory disclosure provision from the Office of Management and Budget's (OMB) Uniform Guidance for Federal Financial Assistance that would require applicants and recipients to proactively alert both the agency and the Office of the Inspector General (OIG) of any credible evidence “of a violation of Federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations” in connection with the award of Federal funds. We also see comment on whether to apply the recently adopted suspension and debarment framework to the SCRP, as well as to any new universal service programs or modernized forms of TRS or NDBEDP.

These proposals, if adopted, will help to streamline the implementation of the Guidelines and supplemental rules, and will aid the Commission in meeting its long-standing objective of decreasing the potential for waste, fraud, and abuse by prompting participants to both familiarize themselves, and comply, with the adopted rules and provide additional tools to remedy noncompliance.

The Commission does not anticipate that the proposals set forth in the FNPRM will create additional economic, recordkeeping, or other compliance burdens on small entities seeking to comply with the proposed rules, should they be adopted. We note that entities receiving FCC financial assistance are already required to familiarize themselves with, and comply with, Commission rules governing participation in such programs. As a result, the proposed rules should not create additional burdens to small and other entities. While we do not anticipate that such entities will need to hire professionals to comply with the proposals outlined herein, we request comments from small and other entities that are specific to any potential burdens or costs small entities may incur in connection with these requirements, as well as any benefits that may be achieved.

Discussion of Significant Alternatives Considered That Minimize the Significant Economic Impact on Small Entities

The RFA directs agencies to provide a description of any significant alternatives to the proposed rules that would accomplish the stated objectives of applicable statutes, and minimize any significant economic impact on small entities. The discussion is required to include alternatives such as: “(1) the establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance and reporting requirements under the rule for such small entities; (3) the use of performance rather than design standards; and (4) an exemption from coverage of the rule, or any part thereof, for such small entities.”

In developing its proposals in the FNPRM, the Commission considered alternatives that could minimize significant economic impact on small entities. As discussed above, we propose including a new certification to our existing information collection methods for those entities participating in USF programs. For example, we considered not adopting such a requirement; however, maintaining the status quo would not meet our objectives of streamlining both the Guidelines and supplemental rules implementation, and would also not serve the public's interest in decreasing the potential for waste, fraud, and abuse. Moreover, other alternatives beyond the FNPRM' s proposal could prove to be more economically burdensome to comply with for program participants, some of which are small entities. The certification proposal in the FNPRM will both meet the Commission's objectives while minimizing administrative or other compliance costs to small entities. We propose to adopt the mandatory disclosure provision from OMB's Uniform Guidance for Federal Financial Assistance, and seek comment on alternatives that would ensure program participants are actively assisting the agency in deterring and addressing waste, fraud, and abuse. As we propose to apply the recently adopted ( printed page 17893) suspension and debarment framework to the Supply Chain Reimbursement Program, as well as any new universal service programs or modernized forms of TRS or NDBEDP, we seek comment on other alternatives to improve the sustainability of their funding for the benefit of those whom the programs serve.

To assist in the Commission's evaluation of the economic impact on small entities, and to better explore options and alternatives, the Commission seeks comments from small entities and other interested parties on its proposal discussed in the FNPRM. We expect to more fully consider the economic impact on small entities following our review of comments filed in response to the FNPRM in reaching our final conclusions and promulgating rules in this proceeding.

Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Rules

None.

Federal Communications Commission.

Marlene Dortch,

Secretary.

[FR Doc. 2026-06863 Filed 4-8-26; 8:45 am]

BILLING CODE 6712-01-P

Published Document: 2026-06863 (91 FR 17888)