Armstrong Group Pays $6.5M Fine for USF Violations

The Armstrong Group agreed to pay $6.5 million for violating the FCC's rules on the USF high-cost program, DOJ announced Friday. The company admitted to "submitting improper costs in order to inflate the subsidies it received," a news release said. An investigation found that five incumbent local exchange carriers the Armstrong Group owns failed to comply with FCC rules between 2008 and 2023. A whistleblower will receive about $1.2 million "as his share of the recovery," DOJ said. “When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline," Eric Olshan, U.S. attorney for the Western District of Pennsylvania, said.