Supreme Court Upholds FCC Broadband Subsidy Program Nationwide

The U.S. Supreme Court upheld the Federal Communications Commission’s Universal Service Fund (USF) in a 6-3 decision, affirming the constitutionality of the funding mechanism that supports broadband and phone services for rural, low-income, and underserved communities. The Court ruled that Congress did not exceed its authority in delegating power to the FCC to collect fees from telecommunications companies to fund the $9 billion program, which benefits millions of households, students, schools, libraries, and healthcare facilities. This ruling overturned a lower court decision that had deemed the USF unconstitutional, reinforcing Congress’s intent from the Telecommunications Act of 1996 and maintaining regulatory oversight by the FCC and the Universal Service Administrative Company. Critics, including conservative groups like Consumers’ Research, had challenged the program as an unconstitutional tax, but the Supreme Court majority, led by Justice Elena Kagan, rejected this argument, emphasizing the importance of maintaining congressional delegation and regulatory flexibility. The decision also reflects the influence of major telecom companies that benefit from the subsidies, and it marks a departure from the broader conservative trend to limit regulatory authority. FCC officials and industry groups welcomed the ruling, while noting the need for future reforms to ensure the program’s sustainability and broadband affordability.