Supreme Court to Decide Fate of $8 Billion Broadband Fund

WASHINGTON, Nov. 22, 2024 – The U.S. Supreme Court announced Friday that it will hear a case questioning the constitutionality of the Universal Service Fund, a $8.1 billion program critical to expanding broadband access in rural and underserved areas.

The key issue before the Court is whether the USF and its administrator, the Universal Service Administrative Company, violate the Constitution’s “non-delegation” and “private non-delegation” doctrines. 

Critics argue that the Federal Communications Commission improperly delegated legislative authority to USAC, which manages the fund, and that the fee charged to telecom providers resembles a tax, which only Congress can impose.