On Friday, the Supreme Court voted to uphold the FCC’s Universal Service Fund (USF) program. The program brings phone and broadband internet access to underserved communities and is funded by telecommunications services which are required to pay into the fund to subsidize the universal service.
The Universal Service Fund began with the Telecommunications Act, passed by Congress in 1996, which authorizes the FCC to use the fund to provide service to the “nation’s schools, libraries and rural health care facilities.” A private company, Universal Service Administrative Company, determines how much should be collected, collects the payments, and delivers funding – all with FCC oversight.
The funding of the program was challenged by conservative group Consumers’ Research, which argued that the program is being funded by an unconstitutional tax. In a 6-3 vote, the Supreme Court opted to reject the argument.
After the decision Friday, FCC Commissioner Anna M. Gomez called the fund “a critical tool for expanding access to and ensuring consumers can afford to be connected,” while noting that the program will need to be reformed in order to make it sustainable long-term.
“I’m glad the Supreme Court has upheld the constitutionality of the USF, providing Congress with the clarity and confidence it needs to continue to pursue a bipartisan, bicameral solution to protect this vital program, Gomez said. “Only Congress has the authority to reform the Universal Service Fund in a durable, forward-looking way that can withstand future legal challenges. I look forward to continued progress from the bipartisan, bicameral working group and remain committed to ensuring that broadband affordability remains a central pillar of any proposal moving forward.”
The Internet & Television Association also commented on the ruling, saying “NCTA is pleased that the Supreme Court’s decision will avoid disruption to the essential work of the Universal Service program. We look forward to working with Congress and the FCC to make the adjustments necessary to ensure the program works more effectively and efficiently on behalf of the American people over the long term.”