An $8 Billion US Phone Subsidy Is at Risk From Legal Challenges

A decades-old subsidy that helps poor people and rural areas pay for telecom services is at risk in a legal battle that could heat up in 2023 — and saddle tech companies with new fees if the program needs rebuilding after the litigation.

The $8.6 billionUniversal Service Fund, a linchpin of US communications funding since the late 1990s, helps more than 8 million people afford phone and internet service. The conservative advocacy group Consumers’ Research filed lawsuits in three US courts saying the program should be invalidated because its funding is set by regulators, rather than by Congress, which ...