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4w ago

Supreme Court Signals Support for FCC's Universal Service Fund

Justices express reluctance to strike down the $9 billion program, citing potential disruptions to federal funding mechanisms.

Emely Baumert of Ft. Lauderdale, Florida, uses the internet at the Carroll County District Library while in Carrollton, Ohio, on a visit.
FILE - The U.S. Supreme Court is seen near sunset in Washington, Oct. 18, 2018. (AP Photo/Manuel Balce Ceneta, File)
A beam of sunlight breaks through the cloudy skies to illuminate the Supreme Court in Washington.
The Supreme Court building is seen on June 26, 2024.

Overview

  • The Supreme Court heard oral arguments on the FCC's Universal Service Fund, which subsidizes phone and internet services for rural and low-income areas.
  • Justices appeared divided but leaned toward upholding the program, with concerns about broader implications of dismantling similar federal funding structures.
  • The challengers, led by Consumers' Research, argue the program constitutes 'taxation without representation' and violates constitutional limits on congressional delegation of power.
  • The FCC and the Biden administration defended the program, stating Congress provided sufficient guidance through the 1996 Telecommunications Act.
  • A decision is expected by late June 2025, with the outcome potentially affecting the nondelegation doctrine and the scope of federal agency powers.