The U.S. Supreme Court upheld the FCC's Universal Service Fund (USF) program's constitutionality by a 6-3 vote, rejecting claims that it violated the nondelegation doctrine. The ruling clarifies that the contributions to USF do not constitute an unconstitutional tax. This decision resolves previous circuit court disputes and supports the FCC's administration of the program alongside the Universal Service Administrative Co. (USAC). Justice Kagan's majority opinion emphasized adherence to Supreme Court precedents dismissing claims from Consumers' Research, thus reinforcing the fund's legal standing crucial for rural broadband services.
Justice Elena Kagan, writing for the majority, rejected the Fifth Circuit's analysis of universal service fees as a tax delegated by the FCC to a third party.
The opinion settles a split among the circuit courts of appeal over the constitutionality of USF, affirming that the FCC has legally managed the program.
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