Supreme Court leans toward upholding federal internet subsidy program
- The U.S. Supreme Court reviewed a lower court's ruling that deemed the Universal Service Fund unconstitutional, which subsidizes broadband for rural and low-income areas, on March 26, 2025.
- The Fifth Circuit ruled that the fund violated the nondelegation doctrine by giving too much power to the FCC and private entities.
- Consumer Research argues that Congress imposed no meaningful restrictions on the fund, while others claim it serves essential needs for low-income customers.
- A decision from the Supreme Court on this case is expected by the end of June 2025.
51 Articles
51 Articles
Supreme Court Hears Challenge to Tax on Telephone Service
The U.S. Supreme Court on March 26 considered whether it should uphold a lower court ruling that invalidated an $8-billion-a-year broadband subsidy for rural and low-income regions. The case is actually two cases—Federal Communications Commission (FCC) v. Consumers’ Research, and SHLB Coalition v. Consumers’ Research. On July 24, 2024, the U.S. Court of Appeals for the Fifth Circuit held that the Universal Service Fund was unconstitutional becau…
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