Supreme Court Upholds Universal Phone & Internet Subsidies Program
Court validates mobile and internet assistance plan for underserved regions
WASHINGTON - In a 6-3 decision, the Supreme Court has given a green light to the Federal Communications Commission (FCC) program that subsidizes phone and internet services in underserved areas of the country.
In the ruling, Justice Elena Kagan, writing for the majority, stated that the Congress did not overstep its authority when it enacted a 1996 law that established the Universal Service Fund (USF). The fund collects billions of dollars annually, which are used to provide essential services, including to schools, libraries, and hospitals.
The Court also confirmed that the FCC could delegate its authority to the private corporation, the Universal Service Administrative Company (USAC), to manage the fund. Kagan asserted, "Nothing in these arrangements, either separately or together, violates the Constitution."
Conservative justices dissented from the ruling, with opponents claiming that the USF fee amounts to a form of tax and questioning whether unelected bureaucrats have the power to impose it. Critics of the program argue it violates the "nondelegation doctrine," a theory closely associated with the conservative movement that restricts Congress's authority to delegate its lawmaking power to executive agencies.
Despite the Supreme Court's conservative majority, the justices, so far, have not wholeheartedly adopted the nondelegation doctrine, although they have shown support for it in various contexts. If the court were to revitalize this concept, it could impose new limitations on government agencies, mandating stricter boundaries on their powers to implement laws and programs.
The recent decision comes as the Senate Republicans have released a 940-page bill designed to advance President Donald Trump's agenda. This development follows Trump's attempts to expand the powers of the presidency at the expense of Congress and the judiciary. However, it's worth noting that his administration supported the FCC in this case, as it had taken over the case from the Biden administration.
In the face of efforts to weaken federal agencies, this decision ensures the FCC's ability to continue and potentially expand subsidies that make phone and internet services accessible and affordable in underserved and high-cost communities. By doing so, the court aids in the ongoing effort to close the digital divide across the nation.
- Yale Law Journal
- PLOS Public Library
- Brookings Institution
- Verge
- In exploring the legality of the Universal Service Fund (USF), scholars might find it beneficial to refer to the 'intelligible principle test' to evaluate the constitutionality of the USF and its impact on the finance industry, as discussed in the Brookings Institution report.
- Furthermore, with the Supreme Court's decision allowing the FCC to continue subsidizing phone and internet services, opportunities for investment in the telecommunications industry, particularly in underserved regions, are anticipated to grow, playing a key role in bridging the digital divide as emphasized in articles from sources such as The Verge and the Yale Law Journal.
