On Friday, the Supreme Court upheld a Federal Communications Commission (FCC) program that subsidizes phone and internet services in underserved areas of the U.S. The ruling, penned by Justice Elena Kagan, confirmed that Congress did not act beyond its authority when it established the Universal Service Fund in 1996. This fund requires telecommunications providers to contribute funds for “universal service,” which is crucial for expanding access to communications services. The court affirmed that the FCC could delegate managing this fund to the private Universal Service Administrative Company, stating, “Nothing in these arrangements…violates the Constitution.”
In a 6-3 decision, with dissenting votes from three conservative justices, the court noted that the fees collected—typically passed on to consumers—generate billions each year to support services for schools, libraries, and hospitals. Opponents of the program, including a conservative group called Consumers’ Research, argued that it violates the “nondelegation doctrine,” which limits Congress’s ability to transfer legislative authority to the executive branch and suggested that imposing such fees amounted to taxation that should only be authorized by elected officials.
While previous courts were divided on this matter, the current Supreme Court, which has a conservative majority, did not invoke the nondelegation doctrine in this case, though it has shown some interest in it in other contexts. If revitalized, such a doctrine could restrict the powers of federal agencies in implementing broad congressional laws. Interestingly, despite a history of challenging federal agencies, the Trump administration backed the FCC in this case, reflecting its broader strategy to shift power dynamics among branches of government.
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