Supreme Court to Hear Challenge to Broadband Subsidy

The FCC is seeking the court’s approval to restore the Universal Service Fund after it was invalidated by the Fifth Circuit. The Supreme Court has agreed to hear the FCC’s appeal of the ruling that struck down the $8 billion annual broadband subsidy. The court’s decision was made in FCC v. Consumers’ Research, and the case has been consolidated with SHLB Coalition v. Consumers’ Research. The Fifth Circuit had ruled that the Universal Service Fund was unconstitutional as it took taxing power away from Congress. The fund, established in the Telecommunications Act of 1996, provides subsidies for telecommunications services and is supported by a tax on telephone service. The Solicitor General argued that the circuit court’s ruling must be overturned as it would disrupt universal service programs. Consumers’ Research, a nonprofit organization, supported the circuit court’s decision, describing the fund as a multibillion-dollar social welfare program with no clear restrictions on funding. The Supreme Court’s decision to hear the case has not elicited responses from relevant parties at the time of publication. Please rewrite this sentence.

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