US EditionSupreme Court upholds federal internet subsidy program
UNITED STATES, JUN 27 – The Supreme Court's 6-3 ruling preserves the $9 billion Universal Service Fund, ensuring continued subsidized broadband and phone access for underserved rural and low-income communities.
- The U.S. Supreme Court upheld the federal government's ability to collect fees from telecommunications companies to fund internet and phone access for low-income and rural Americans.
- The program, called the Universal Service Fund, collects around $9 billion annually from telecom companies, who pass the cost to customers.
- A lower court had ruled that the funding mechanism was an unconstitutional tax levied by the Federal Communications Commission without congressional authorization.
180 Articles
180 Articles
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US Supreme Court upholds multibillion dollar federal program supporting telecommunications in rural areas
In a 6-3 ruling released Friday, the US Supreme Court found that a universal-service contribution scheme does not violate the nondelegation doctrine, which restricts Congress’ ability to delegate its power to federal agencies, private companies, or the other two branches of government. Writing for the majority, Justice Elena Kagan described respondent Consumers’ Research’s reading of the Communications Act of 1934 as extravagant, countering its …
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Valley Telecom applauds court ruling preserving Universal Service Fund
Local telecommunications service provider Valley Telecom is applauding a U.S. Supreme Court decision upholding the constitutionality of the fee that is added to phone bills to support subsidized phone and internet services to schools, libraries and rural areas.
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