Supreme Court to Review FCC's Universal Service Fund Constitutionality

The case examines Congress's delegation of authority to the FCC and its use of a private entity to manage billions in telecommunications subsidies.

The Supreme Court has agreed to hear a challenge to the Federal Communications Commission's Universal Service Fund, a program supporting affordable telecommunications services for rural and low-income communities.
The case centers on whether Congress violated the nondelegation doctrine by granting the FCC authority to set contribution rates and allowing a private nonprofit to manage the fund.
The Fifth Circuit Court of Appeals ruled 9-7 that the program's funding mechanism is unconstitutional, creating a split with other circuit courts that upheld the fund's legality.
The Biden administration appealed the Fifth Circuit's decision, warning that dismantling the fund could disrupt essential services for millions of Americans in underserved areas.
The Supreme Court has also asked whether the case is moot due to the challengers' failure to seek preliminary relief in lower courts, potentially allowing the justices to avoid ruling on the core constitutional issues.