Fifth Circuit to Hear Long-Overdue Constitutional Challenge to Universal Service Fund
Each quarter, the Federal Communications Commission (FCC) determines the Universal Service Fund (USF) surcharge that is placed on customers’ telecommunications bills. The surcharge is calculated by estimating the cost of the agency’s various universal service programs, divided by the industry’s anticipated telecommunications revenue. As those programs have grown, and that revenue has shrunk, the surcharge has risen from 3 percent in 1998 to a whopping 33 percent in 2021.