Federal Appeals Court Rules FCC's Universal Service Fund Unconstitutional

The 5th Circuit Court's decision challenges the funding method for essential communication services, potentially leading to Supreme Court review.

The 5th Circuit Court of Appeals ruled 9-7 against the FCC's Universal Service Fund, labeling it an unconstitutional tax.
The ruling reverses a previous decision and may conflict with other circuit courts' opinions on the matter.
Judges argued that the FCC improperly delegated taxing authority to a private entity, the Universal Service Administrative Company.
The Universal Service Fund supports phone services for low-income and rural users, as well as broadband for schools and libraries.
The FCC and the Universal Service Administrative Company have yet to respond to the ruling, which may be appealed to the Supreme Court.