FCC Broadband Subsidy Scheme to Get Another Look From 5th Cir.

The Fifth Circuit sitting en banc will hear arguments Tuesday about whether Congress failed to properly delegate its revenue-raising authority when it permitted the FCC to charge telecommunications companies to fund a broadband access subsidy.

The arguments come after what observers describe as the appeals court’s recent history of placing strict requirements on agency power. The decades-old Universal Service Fund supports telephone and internet access by subsiding low-income families, rural hospitals, and schools who want to purchase broadband services, as well as funding carriers to develop broadband in otherwise high-cost areas. Companies typically pass along the cost of the program ...