Supreme Court To Decide FCC Fund's Legality

The U.S. Supreme Court agreed on Friday to decide the legality of a congressionally authorized fund operated by the FCC to expand access to telecommunications services in a challenge accusing Congress of unlawfully delegating its authority to an independent federal agency.

Reuters reports the justices took up an appeal by the FCC and a coalition of interest groups and telecommunications firms of a lower court's decision that found Congress violated the U.S. Constitution by empowering the FCC to manage the fund. The court is expected to hear arguments in the case and issue a ruling by the end of June.

Congress in a federal law called the Telecommunications Act of 1996 authorized the FCC to operate the Universal Service Fund to promote broad access to services such as phone and broadband internet.

All telecommunications carriers contribute to the fund, which draws around $9 billion annually. The fund helps to extend service to people in rural areas, provides subsidies for low-income Americans, expands service in Native American tribal lands and assists schools and libraries.

A group of challengers including the conservative group Consumers' Research filed lawsuits against the FCC and the U.S. government, arguing that Congress delegated its revenue-raising function to the FCC in violation of the Constitution. The challengers also argued that the FCC unlawfully transferred its authority to the Universal Service Administrative Company, a private nonprofit that helps the agency administer the fund.

The case involves the non-delegation doctrine, a legal concept that embraces the view that Congress cannot delegate the legislative powers given to it under the Constitution to other entities. The legality of the FCC's handoff of power involves a similar concept known as the private non-delegation doctrine.

The Supreme Court on Friday agreed to review a ruling by the New Orleans-based 5th U.S. Circuit Court of Appeals that found the funding arrangement unconstitutional, granting an appeal by the FCC and various interest groups.

FCC Chair Jessica Rosenworcel hailed the court's decision to hear the agency's appeal.