Supreme Court Upholds Universal Service Fund, 6-3
The court said the contribution scheme and management were Constitutional.
WASHINGTON, June 27, 2025 – The Supreme Court on Friday overturned a Fifth Circuit decision that found the $9 billion-per-year Universal Service Fund unconstitutional.
Jake Neenan
The Federal Communications Commission program supports rural broadband networks, plus internet discounts for low-income households, schools and libraries and healthcare centers. It’s been funded since the 1990s by fees on interstate voice revenue, with the accounting work delegated to the Universal Service Administrative Company, which the FCC set up for the purpose.
Conservative nonprofit Consumers’ Research had alleged the fund was unconstitutional, arguing Congress didn’t put enough guardrails on the FCC’s ability to collect fees as part of the fund, and that the agency improperly delegated authority to USAC. The Fifth Circuit had ruled the combination of the two illegally took taxing power away from the legislature.
In a 6-3 decision by Justice Elena Kagan, the court rejected both arguments.
“When Congress amended the Communications Act in 1996, it provided the Commission with clear guidance on how to promote universal service using carrier contributions,” Kagan wrote. “Our precedents do not require more. Nor do they prevent the Commission, in carrying out Congress’s policy, from obtaining the Administrator’s assistance in projecting revenues and expenses, so that carriers pay the needed amount.”
Justices Neil Gorsuch wrote the dissent, joined by fellow conservative Justices Clarence Thomas and Samuel Alito.
Notice: This is a developing story, and Broadband Breakfast will update with additional details and reactions.
