Constitutionality of Broadband Subsidy Upheld Again

The Federal Communications Commission’s authority to charge telecommunications companies to fund a subsidy was upheld Thursday months after the Fifth Circuit also ruled in the agency’s favor.

The Universal Service Fund provides affordable wire, radio, and broadband access across the country, relying on a fee—recommended by the Universal Service Administrative Company, a private not-for-profit—that the FCC approves and charges telecommunications firms.

In 2021, carrier Cause Based Commerce, nonprofit Consumers’ Research, and some individuals argued that Section 254 of the Telecommunications Act of 1996, which the FCC draws authority from to administer the fee, violates two distinct non-delegation principles—regarding how Congress ...