Fifth Circuit Pauses USF Decision While FCC Plans Appeal

WASHINGTON, August 27, 2024 – The U.S. Court of Appeals for the Fifth Circuit issued an order yesterday pausing its ruling that an $8 billion broadband subsidy program was unconstitutional while the Federal Communications Commission pursues an appeal to the Supreme Court.

Motion for Stay of the Mandate

The Federal Communication Commission’s unopposed motion for a stay of the mandate pending its petition for a writ of certiorari is GRANTED. This stay will expire, and the mandate shall issue, on October 1, 2024. If the FCC files a petition on or before September 30, 2024, however, this stay shall “continue[] until the Supreme Court’s final disposition.” Fed. R. App. P. 41(d)(2)(B)(ii).

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The agency wrote in court filings that it plans to file that petition with the high court by Sept. 30. If the FCC keeps to that schedule, the decision will stay on hold until the Supreme Court weighs in, either by denying the petition or taking up the case and issuing a ruling.

The Universal Service Fund supports rural broadband infrastructure as well as broadband discounts for low-income households, schools and libraries, and healthcare centers. Set up in 1996, it’s managed by the FCC and funded by fees on interstate voice revenue. The agency delegated day-to-day administration of the program to the Universal Service Administrative Company, a non-profit established and overseen by the agency.