The U.S. Supreme Court will hear oral arguments for FCC v. Consumers' Research regarding the constitutionality of the Universal Service Fund (USF) contribution system. This follows a Fifth Circuit ruling deeming it unconstitutional, conflicting with the Sixth and Eleventh Circuits. Consumers' Research challenges the legality of the USF, which collects a percentage from telecommunications carriers, with claims of illegal tax status lacking Congressional approval. The case centers on whether Congress violated the nondelegation doctrine in empowering the FCC to set contribution levels, with interested parties submitting numerous briefs in support of different positions.
The FCC's limited employment of USAC for ministerial functions plainly satisfies these standards, as the Sixth and 11th Circuits correctly found, and contrary to the 'skeptic[ism]' of the Fifth Circuit en banc majority.
There is no violation of the private nondelegation doctrine where the private entity functions subordinate to an agency, and the agency has authority and surveillance over the entity.
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