US Supreme Court to scrutinize Federal Communications Commission fund's legality
The U.S. Supreme Court is set on Wednesday to hear the Federal Communications Commission's defense of the mechanism it uses to fund a multi-billion dollar effort to expand phone and broadband internet access to low-income and rural Americans and other beneficiaries.
The FCC and a coalition of telecommunications firms and interest groups have appealed a lower court's ruling that found that the agency's funding operation effectively levied a "misbegotten tax" on American consumers in violation of the U.S. Constitution's vesting of legislative authority in Congress. It is the latest case to come to the Supreme Court challenging the power of federal agencies.
A law called the Telecommunications Act passed by Congress in 1996 authorized the FCC to operate a "Universal Service Fund," to be drawn from regular contributions by telecommunications companies. The fund draws around $9 billion annually, with the vast majority of telecommunications companies passing on the cost to customers.
Related Coverage
AllSides Picks
Headline Roundup
Which SCOTUS Cases the Media Wants You to Watch and Why
October 6th, 2026
Headline Roundup
Supreme Court Begins New Term With Strained Trump Relationship and Record-Low Approval Rating
October 5th, 2026
Announcement
Navigating AI, Climate, and the Future of Democracy
AllSides Staff
October 9th, 2026
The Insight
The Insight: Where Israel and Gaza Stand 3 Years After Oct. 7
AllSides Staff
October 9th, 2026
More News about Supreme Court
News from the Left
News from the Center
News from the Right
CNBC