USF

Court Finds FCC’s Broadband Funding Vehicle Violates a 1945 Federal Law

The agency violated the Government Corporation Control Act when it created the Universal Service Fund’s administrator, judges ruled

Jake Neenan

Jake Neenan

— 3 min read
Court Finds FCC’s Broadband Funding Vehicle Violates a 1945 Federal Law
Photo of the John Minor Wisdom U.S. Court of Appeals Building, which houses the U.S. Court of Appeals for the Fifth Circuit, in 2015 by Jonathan Bachman/AP

WASHINGTON, Oct. 15, 2026 – A federal broadband subsidy program that spends about $8.5 billion a year ran into legal trouble today.

Federal judges ruled Thursday that the Federal Communications Commission didn’t have the authority to set up the nonprofit that administers the Universal Service Fund (USF). The program supports rural broadband networks and discounts for low income households, rural health care centers, and schools and libraries.

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