Today, the U.S. Supreme Court ruled in FCC v. Consumers’ Research, affirming the constitutionality of the FCC’s Universal Service contribution system, and overturning a flawed ruling by the U.S. Court of Appeals for the Fifth Circuit that would have placed new obstacles in front of Congress and agencies attempting to implement policies affecting public health, safety, and welfare across the economy.
The Universal Service Fund helps ensure that all Americans, regardless of their geographic location or economic status, have access to essential telecommunications services. By subsidizing services in rural and low-income areas, the USF helps bridge the digital divide, fostering greater social and economic inclusion. It also supports institutions like schools, libraries, and healthcare facilities, enabling them to provide vital services to their communities.
Public Knowledge, along with the Affordable Broadband Campaign, Chamber of Progress, Common Sense Media, and Communications Workers of America, filed an amicus brief in the case, urging the Supreme Court to reverse the Fifth Circuit’s decision which had declared the Universal Service Fund’s mechanisms to be unconstitutional.
The following can be attributed to John Bergmayer, Legal Director at Public Knowledge:
“We are relieved that the Supreme Court upheld the FCC’s congressionally delegated authority to administer the Universal Service Fund, and to work with the nonprofit Universal Service Administrative Company. This decision protects vital programs that provide connectivity to rural communities, schools, hospitals, and low-income families, ensuring no American is left behind in the digital age.
“This ruling confirms that the mechanisms that have been in place for managing Universal Service are lawful. But further reforms are needed to modernize the program for the broadband age. These include ensuring full FCC jurisdiction over broadband, allowing the agency to more fully address both payments into the fund (contributions), as well as ensuring payments from the fund (distributions) can be more properly targeted.
“Universal Service reforms should also include permanent affordability measures modeled on the successful Affordable Connectivity Program. The ACP provided eligible low-income households with monthly broadband discounts and a one-time subsidy for connected devices, dramatically expanding internet access to over 23 million households, and was a resounding success with bipartisan support. Any USF reform must enshrine this success by incorporating an ACP-like subsidy into the permanent funding structure.”
Members of the media may contact Communications Director Shiva Stella with inquiries, interview requests, or to join the Public Knowledge press list at shiva@publicknowledge.org or 405-249-9435.