Supreme Court to Review FCC Fund Constitutionality

The U.S. Supreme Court has agreed to review the constitutionality of the Federal Communications Commission's (FCC) Universal Service Fund, which allocates approximately $9 billion annually to improve telecommunications services in underserved areas. This review arises due to a ruling by the 5th U.S. Circuit Court of Appeals declaring the fund's funding mechanism unconstitutional, citing an improper delegation of Congress's authority to the FCC and subsequently to a private entity, the Universal Service Administrative Company. The case is a significant test of the nondelegation doctrine, which prohibits Congress from transferring its legislative powers to other bodies, a doctrine not invoked by the Supreme Court since 1935. The Biden administration has appealed the 5th Circuit's decision, and the Supreme Court's ruling could impact the continuation of vital services for rural areas and low-income consumers. The decision is expected by late June, and the outcome may also influence how the FCC and other federal agencies operate under delegated congressional authority.