Universal Service Fund's renewed legal challenge spotlights need for reform

Many in the telecommunications industry were relieved when the Supreme Court ruled in favor of upholding the Universal Service Fund in June 2025. But it wasn't a long reprieve, as those same groups are once again defending the fund in court filings. The renewed Consumers' Research case argues against the Universal Service Administrative Company's power to administer the fund and alleges parts of the Telecommunications Act codified USF as unconstitutional, while citing USF's "skyrocketing" costs. But the telecommunications world is once again fighting back. In late March, the court received briefs from both NTCA–The Rural Broadband Association and a coalition group including the Schools, Health & Libraries Broadband Coalition, Benton Institute for Broadband & Society, National Digital Inclusion Alliance, and the Center for Media Justice. The filings seek to knock down the Consumers' Research argument, in large part by pointing back at the high court's opinion, with NTCA noting, for instance, that "[p]etitioners insinuate that the Constitution requires a 'bevy of limits' on Federal Communications Commission programs ... but the [Supreme Court] reaffirmed that an intelligible principle suffices."