The Supreme Court Lifts A Cloud That Hung Over USF

The Benton Institute for Broadband & Society and its public interest allies have reason to celebrate an unambiguous victory at the U.S. Supreme Court. On July 27, in FCC v. Consumers Research, Justice Elena Kagan, joined by five colleagues, decisively rejected arguments that the Universal Service Fund (USF) established under the Communications Act is an unconstitutional delegation of Congressional authority to the Federal Communications Commission (FCC). The decision also upheld the constitutionality of the FCC’s establishment of a quasi-public organization, the Universal Service Administrative Company (USAC), to administer the fund on a day-to-day basis. The Supreme Court actually resolved two cases brought in companion petitions for certiorari. The first was filed by the FCC and the United States government. The Benton Institute and three other public interest groups (the Schools, Health & Libraries Coalition, the National Digital Inclusion Alliance and MediaJustice), along with several telecommunications industry trade associations, which had collectively intervened in the cases in support of the government, also filed for certiorari, each asking the Supreme Court to agree to hear the cases.

[Andrew Jay Schwartzman is Benton Senior Counselor. He has represented the Benton Institute for Broadband & Society ​, the National Digital Inclusion Alliance, and MediaJustice throughout this litigation.​]