Telecom Subsidy Case Is Part of Bigger Push to Curb Agency Power

Another attempt to limit federal agency power—this time by limiting Congress’ ability to delegate decisionmaking to regulators—was propelled by a federal appeals court’s ruling against an $8 billion-a-year FCC program intended to boost phone and broadband service for poor and rural communities.

The US Court of Appeals for the Fifth Circuit, in a 9-7 en banc ruling, found that the FCC’s Universal Service Fund is an unconstitutional delegation of Congress’ taxing authority where that power is given to a federal regulator that delegates it to a non-governmental organization. Judge Andrew S. Oldham described the fee—which is collected from telecommunications companies ...