The Supreme Court upheld the Federal Communications Commission’s (FCC) Universal Service Fund program, which subsidizes phone and internet services in underserved areas. In a 6-3 decision authored by Justice Elena Kagan, the court determined that Congress acted within its authority when it established the program under a 1996 law. The ruling confirmed the FCC’s right to delegate management of the fund to the Universal Service Administrative Company, highlighting that this arrangement does not violate the Constitution.
The Universal Service Fund is financed through fees collected from telecommunications providers, which are typically passed on to consumers. These funds are essential for maintaining telecommunications services for schools, libraries, and hospitals. Critics of the program, however, argue that it constitutes a tax requiring direct legislative approval, as its funding mechanisms are broad and lack specificity regarding raised amounts. Their challenges are rooted in the “nondelegation doctrine,” emphasizing the concern that Congress should not delegate lawmaking powers excessively to executive agencies.
Despite a conservative majority on the court known for restricting agency powers, the current ruling did not reinvigorate the nondelegation doctrine. Although some justices have shown support for it in prior cases, the court has thus far refrained from adopting a more strict interpretation that would limit agency authority. Notably, the Trump administration, which previously sought to curtail federal agency powers, defended the FCC in this case, aligning with its broader strategy to expand presidential powers at the expense of other branches of government.
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