Supreme Court Upholds $8 Billion Fund Supporting Rural Phone, Internet Access

The U.S. Supreme Court upheld the constitutionality of the Universal Service Fund (USF), a program that collects fees from telecommunications companies to subsidize phone and internet services in rural and low-income communities, in a 6-3 decision. The Court ruled that Congress did not improperly delegate legislative authority to the Federal Communications Commission (FCC), nor did the FCC unlawfully delegate its power to a private nonprofit administering the fund. Justice Elena Kagan, writing for the majority, emphasized that the FCC retains discretion and oversight, maintaining separation of powers under the Constitution. This ruling marks a significant departure from recent conservative rulings that have curtailed federal agency powers and rejects attempts to revive the nondelegation doctrine to limit agency authority. The USF, established in 1996, aims to close the digital divide by providing affordable and reliable communication services to underserved areas, including schools, libraries, and hospitals. The decision safeguards a program critical to ensuring rural Americans benefit from advances like 5G, countering challenges from conservative groups who argued the program's funding structure was unconstitutional.