Supreme Court steps into fight over FCC's $8 billion subsidies for internet and phone services
Source: Associated Press
Supreme Court steps into fight over FCC’s $8 billion subsidies for internet and phone services
Updated 3:32 PM EST, November 22, 2024
WASHINGTON (AP) — The Supreme Court on Friday stepped into a major legal fight over the $8 billion a year the federal government spends to subsidize phone and internet services in schools, libraries and rural areas, in a new test of federal regulatory power.
The justices will review an appellate ruling that struck down as unconstitutional the Universal Service Fund. The Federal Communications Commission collects money from telecommunications providers, who then pass the cost on to their customers.
A conservative advocacy group, Consumer Research, challenged the practice. The justices had previously denied two appeals from Consumer Research after federal appeals courts upheld the program. But the full 5th U.S. Circuit Court of Appeals, among the nation’s most conservative, ruled 9-7 that the method of funding is unconstitutional.
The Biden administration appealed that ruling, but the case probably won’t be argued until late March. At that point, the Trump administration will be in place and it not clear whether it will take a different view of the issue.
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