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Communications

Supreme Court Rejects Challenge To FCC Broadband Subsidy Program (nbcnews.com) 45

The Supreme Court ruled Friday that the FCC's Universal Service Fund can continue operating, rejecting claims that the program's funding mechanism violates the Constitution. In a 6-3 decision written by Justice Elena Kagan, the court found that Congress did not exceed its authority when it enacted the 1996 law establishing the fund and that the FCC could delegate administration to a private corporation. The Universal Service Fund subsidizes telecommunications services for low-income consumers, rural health care providers, schools and libraries through fees generally passed on to customers that raise billions of dollars annually.

The program is administered by the Universal Service Administrative Company, a nonprofit the FCC designated to run the fund. Conservative advocacy group Consumers' Research challenged the structure, arguing that "a private company is taxing Americans in amounts that total billions of dollars every year, under penalty of law, without true governmental accountability."

The Fifth Circuit Court of Appeals ruled in favor of Consumers' Research, prompting the FCC to petition the Supreme Court for review. Kagan wrote that Congress "sufficiently guided and constrained the discretion that it lodged with the FCC to implement the universal-service contribution scheme," adding that the FCC "retained all decision-making authority within that sphere." She concluded that "nothing in those arrangements, either separately or together, violates the Constitution." The challengers argued the program violates the "nondelegation doctrine," a conservative legal theory that says Congress has limited powers to delegate its lawmaking authority to the executive branch.

Supreme Court Rejects Challenge To FCC Broadband Subsidy Program

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  • by Marful ( 861873 ) on Friday June 27, 2025 @01:32PM (#65480436)
    Is this the FCC program that has connected zero homes to the internet but had all of it's money wasted?
    • I dunno, but your description sounds typical for a govt program.

      • by caseih ( 160668 ) on Friday June 27, 2025 @01:50PM (#65480474)

        No one can waste public money quite like large, private companies do. Come to that they are often quite wasteful in general, often because of the lack of competition.

        Broadband companies took the money and without oversight did essentially nothing for it, or at best complied maliciously with the regulation accompanying the money.

        Government programs always need fairly costly oversight because of how greedy people really are. Private companies, on the other hand, can be just as wasteful when they are taking consumers money. So either way you do it, there are problems. That doesn't mean government programs are inherently bad or necessarily inefficient, nor is government. In fact they are quite necessary generally for a cohesive society. Getting the balance right is something no one has yet done.

        • by Marful ( 861873 )

          Government programs always need fairly costly oversight because of how greedy people really are.

          It is very easy to spend other people's money...

          Which is exactly you need stringent oversight whenever a private entity manages a public project with public funds.

      • I’ll make you a deal. Let’s do away with this and your social security and medicare. Will you take it?

        • I’ll make you a deal. Let’s do away with this and your social security and medicare. Will you take it?

          Absolutely!! End that shit NOW!!

    • The broadband corporations gave trump a jet, it is all good. Let the public money flow into private corporations!
    • Is this the FCC program that has connected zero homes to the internet but had all of it's money wasted?

      I think this is more the program that allows low-income homes to qualify for a reduced (~$30 discount) rate for broadband service that is already established, currently managed under the guise of a "non-profit".

      From the sounds of it Consumers' Research knows damn well what that legally means in America today; as low as 35% of the gross revenue actually going towards the very thing the non-profit exists for, while funding non-profit administrators/executives a healthy six-figure salary to administrate all th

      • What do we think non-profit actually means. Are you really thinking non-profit means the individuals don't make money? Is this is a serious question?

        Also if the fund is $4.5B annually is it really so unreasonable to pay some "6-figure" ($100k? $800k?) salaries to admin it?

        Also where is you source for that 35% because from the FCC report here it seems like their admin fees are $68M for over $2B in funds so right around 3% or maybe you have different info

        Proposed First Quarter 2025 Universal Service Contribu [fcc.gov]

    • by thegarbz ( 1787294 ) on Friday June 27, 2025 @03:30PM (#65480748)

      Is this the FCC program that has connected zero homes to the internet but had all of it's money wasted?

      No it's not. You're talking about the Broadband Equity, Access, and Deployment (BEAD) program. This is the Universal Service Fund (USF). You can read about it here if you're actually interested in what it is for https://www.fcc.gov/general/un... [fcc.gov]. Though I suspect you're not.

  • All this winning!
  • Laches comes to mind. If it takes you twenty-nine years to decide that you think a program is unconstitutional, you have lost your right to litigate.

    This was very clearly a "We don't like this, and we're going to try to find a way to strike it down in court so that the courts get blamed instead of us" move. All but three of the supreme court justices saw through it as a transparently obvious political ploy.

    • Yeah, no. Laches is applied to issues involving various other parties with respect to damages for injuries inflicted. It doesn't apply to questions of whether a law is constitutional.

  • Maybe most people pay this but not everybody does so it's not aproportioned.

    It's clearly not a tax on incomes either.

    Non-delegation was a dumb strategy, sorry.

In the long run, every program becomes rococco, and then rubble. -- Alan Perlis

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