Texans who use a phone should expect to pay more for that service.

That’s due to a Universal Service Fund fee increase passed in July by the Public Utility Commission of Texas. It impacts everyone across the state who has a traditional landline or a cell phone line, Texas Farm Bureau State Legislative Director Charlie Leal said.

Texans who have a landline or cell phone currently pay the monthly 3.3% Universal Service Fund fee.

The Universal Service Fund is a subsidy that is provided to rural telecommunications companies from the Public Utility Commission to provide phone service in remote areas of the state.

But the commission fell behind on making the payments mandated by the Texas Legislature.

The state is short about $200 million in the fund, and that is projected to grow to $300 million by January 2023.

The Texas Telephone Association filed suit in January 2021, and the Public Utility Commission last month was ordered to pay off the $200 million it owes to rural telecommunications providers and to meet its obligations going forward.

To recoup the money owed to the phone companies and to help provide reliable and affordable telecommunications to rural Texas, the Public Utility Commission approved a fee increase to 24%.

“In reaction to losing the court case to rural telephone providers due to not funding the Universal Service Fund, the Public Utility Commission has taken the action to drastically raise the Universal Service Fund fee on phone bills,” Leal said.

Leal noted the fee is a percentage of the charge of voice phone calls made each month.

“Due to the way the fee is calculated, rural Texans will likely be disproportionally affected by the increase,” Leal said. “The fee is a percentage of the charge for actual voice phone calls made each month. An individual with a cell phone plan that is data heavy will usually pay much lower for the Texas Universal Service Fund fee each month than an individual who has a traditional landline.”

Government entities and certain tax-exempt entities will not be subjected to the increased fee.

For more information, call the toll-free number on your phone bill or the Public Utility Commission at 512-936-7000.