Supreme Court to Rule on FCC's Universal Service Fund's Constitutionality

The case will examine whether Congress and the FCC unlawfully delegated taxing authority to fund subsidized internet and telecom services.

The Supreme Court has agreed to hear consolidated cases challenging the constitutionality of the FCC's Universal Service Fund (USF), which subsidizes internet and telecom services for low-income and rural communities.
The legal challenge centers on whether Congress unlawfully delegated its taxing authority to the FCC, and whether the FCC improperly subdelegated those powers to the Universal Service Administrative Company (USAC), a private nonprofit organization.
The 5th Circuit Court of Appeals previously ruled that the USF constitutes an unconstitutional tax, creating a split with the 6th and 11th Circuits, which upheld the program's legality.
Supporters argue the USF is essential for bridging the digital divide, providing connectivity to millions of students, healthcare providers, and underserved communities, while critics claim it violates the nondelegation doctrine by outsourcing legislative powers.
The Supreme Court's decision, expected by mid-2025, could have significant implications for federal programs that rely on delegated authority to fund public services.