Supreme Court Signals Support for FCC's Universal Service Fund

Justices express reluctance to strike down the $9 billion program, citing potential disruptions to federal funding mechanisms.

The Supreme Court heard oral arguments on the FCC's Universal Service Fund, which subsidizes phone and internet services for rural and low-income areas.
Justices appeared divided but leaned toward upholding the program, with concerns about broader implications of dismantling similar federal funding structures.
The challengers, led by Consumers' Research, argue the program constitutes 'taxation without representation' and violates constitutional limits on congressional delegation of power.
The FCC and the Biden administration defended the program, stating Congress provided sufficient guidance through the 1996 Telecommunications Act.
A decision is expected by late June 2025, with the outcome potentially affecting the nondelegation doctrine and the scope of federal agency powers.