FCC’s $8 Billion Phone Subsidy Will Get Supreme Court Scrutiny

The US Supreme Court will weigh a fresh line of attack on federal administrative power, agreeing to consider the constitutionality of the $8 billion annual slate of subsidies that help cover the cost of telecom services for poor people and rural residents.

Heeding calls from both the Federal Communications Commission and opponents, the justices will rule on the decades-old Universal Service Fund, which uses a charge imposed on monthly phone bills to help more than 8 million people afford telephone and broadband service. The fund also subsidizes service to schools and libraries through the E-rate program.

Challengers led by the ...