US appeals court invalidates federal $9 billion telecom subsidy fund
The ruling threatens a $9 billion subsidy program that helps 7.5 million low-income households and 118,000 schools and libraries, officials said.
- On Thursday, the U.S. Court of Appeals for the Fifth Circuit ruled the Federal Communications Commission exceeded its authority by creating the Universal Service Administrative Co. to manage the $9 billion Universal Service Fund.
- Judge Edith Brown Clement, writing for the panel, stated the FCC lacked legal authority in 1997 to establish USAC, violating the Government Corporation Control Act because Congress never specifically authorized the private oversight company.
- The $9 billion fund subsidizes essential communications for 7.5 million low-income households, while also providing $7 billion over a three-year period to 118,000 schools and libraries serving 54 million students.
- Exploring all options for managing the fund, the FCC stated Friday the court's order would not take effect for at least two months, at the earliest.
- This decision follows a June 2025 Supreme Court ruling that endorsed the FCC's funding mechanism, which an earlier Fifth Circuit decision had labeled a "misbegotten tax" on consumers.
5 Articles
5 Articles
FCC Eyes 'All Options' As 5th Circ. Orders Subsidy Fee Redo
The Federal Communications Commission said Friday it was exploring all options for managing the $9 billion Universal Service Fund after a Fifth Circuit panel ruled the FCC lacked authority to create the funds' private oversight company.
US appeals court invalidates federal $9 billion telecom subsidy fund
A U.S. federal appeals court said on Thursday the Federal Communications Commission exceeded its authority in setting up a telecoms subsidy program in the late 1990s used to widen access to communications for millions of Americans.
US Appeals Court Rules FCC Exceeded Authority in Creating $9bn Telecom Subsidy Programme
A US federal appeals court has ruled that the Federal Communications Commission (FCC) exceeded its legal authority when it established the administrative company responsible for collecting contributions to a multibillion-dollar telecommunications subsidy programme, raising fresh questions about the legal framework supporting affordable internet and phone services for millions of Americans. The US Court of Appeals […]
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
