Solicitor General Defends Universal Service Fund at High Court

WASHINGTON, Jan. 9, 2024 – The Biden Administration Justice Department joined the Federal Communications Commission on Wednesday in urging the Supreme Court to strike down a decision holding that the agency’s $8 billion-per-year broadband subsidy was unconstitutional.

The Fifth Circuit Court of Appeals ruling to that effect “conflicts with decades of precedent and centuries of practice; reflects a misreading of the Communications Act and the FCC’s rules; and threatens to nullify the universal service programs, to the detriment of the millions of Americans whom those programs serve,” the solicitor general's office wrote in a brief co-signed by the agency.

The Universal Service Fund supports four major programs that subsidize rural networks and internet discounts for low-income households, school, libraries, and healthcare centers. It’s funded by fees on interstate voice revenue, although lawmakers have been working to update that for some time.