This morning, the U.S. Supreme Court voted to uphold the Universal Service Fund (USF) by a vote of 6-3.
The decision reads, in part, “Under our nondelegation precedents, Congress sufficiently guided and constrained the discretion that it lodged with the FCC to implement the universal-service contribution scheme. And the FCC, in its turn, has retained all decision-making authority within that sphere, relying on the Administrative Company only for non-binding advice. Nothing in those arrangements, either separately or together, violates the Constitution.”
In March, the Court heard arguments about the Federal Communications Commission’s (FCC’s) USF program, considering whether Congress delegated too much of its authority when it created the program in the Telecommunications Act of 1996.
Reaction from the broadband industry was swift. In October, NTCA – The Rural Broadband Association joined a petition for a writ of certiorari to the Supreme Court seeking it to accept the appeal of a decision by the U.S. Court of Appeals for the Fifth Circuit that found the mechanism by which the federal Universal Service Fund is funded to be unconstitutional.
Today, NTCA released a statement saying, “We greatly appreciate the court’s affirmation today of the universal service programs that, for many decades, have promoted the availability and affordability of critical communications services for rural health care facilities, schools and libraries, and millions of rural and low-income consumers across the nation.”
The Communications Workers of America (CWA) said, “As technicians and customer service representatives in the telecommunication[s] industry, CWA members see the positive impact of the USF every day… This round of litigation and briefing before the Supreme Court emphasized that support for the Universal Service Fund and the programs it supports are strong and broadly held.”
In an analysis of the Supreme Court’s decision to uphold the Universal Service Fund, Blair Levin — policy adviser to New Street Research — wrote that, while the Court has upheld the USF for now, reform is likely. “The upcoming final BEAD grants and the fiscal problems underlying USF are likely to ultimately force Congress and the FCC to address those issues. While today’s decision provides clarity and flexibility on the legal front, the economic and political challenges will continue with congressional activity on the topic likely to increase in the fall.”
