Supreme Court Upholds Fees Funding Schools’ Internet Access/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Supreme Court upheld a decades-old phone fee that funds internet and phone access in schools, libraries, and rural areas. In a 6-3 ruling, the justices reversed a lower court decision finding the fee unconstitutional. Despite recent skepticism toward federal agencies, the justices preserved this major connectivity program.
SCOTUS Ruling on Telecom Fees + Quick Looks
- Fee survives challenge: SCOTUS rules 6-3 to keep program.
- Billions in funding: Money subsidizes internet for schools, libraries, rural areas.
- FCC authority upheld: Court rejects challenge over agency power.
- Nondelegation doctrine debated: Conservative justices remain wary of broad agency authority.
- Program defended across administrations: Both Trump and Biden teams backed FCC fee.
Supreme Court Upholds Fees Funding Schools’ Internet Access
Deep Look
SUPREME COURT SAVES UNIVERSAL SERVICE FUND, MAINTAINING BROADBAND ACCESS NATIONWIDE
The Supreme Court ruled Friday to preserve a fee on phone bills that funnels billions of dollars annually into subsidizing phone and internet services for schools, libraries, and underserved rural areas across the United States.
In a 6-3 decision, the court overturned an appeals court ruling that had threatened to dismantle the Universal Service Fund (USF)—a key pillar of American connectivity for nearly three decades.
AT STAKE: BROADBAND FOR MILLIONS
At oral arguments in March, both conservative and liberal justices voiced alarm over the potential fallout if the fund vanished, given its role in keeping tens of millions of Americans connected to essential communication services.
The USF is funded through fees collected by the Federal Communications Commission (FCC) from telecommunications companies, who then pass the costs on to customers’ phone bills.
THE CHALLENGE TO THE FUND
The lawsuit stemmed from Consumers’ Research, a conservative advocacy group based in Virginia, which argued that the system violated constitutional principles by giving too much authority to the FCC and allowing a private administrator excessive control.
Though federal appeals courts had previously upheld the program, the conservative-leaning 5th U.S. Circuit Court of Appeals ruled 9-7 that the funding mechanism was unconstitutional. The lower court cited the nondelegation doctrine, which bars Congress from transferring its legislative power to other entities without clear guidelines.
The Supreme Court last invoked the nondelegation doctrine to strike down a federal law in 1935, but several current conservative justices have hinted at reviving the principle.
CONTEXT OF RECENT REGULATORY RULINGS
The high court’s decision comes as it has otherwise curbed federal agency powers in significant cases.
Last year, the justices overturned a 40-year-old precedent that supported broad deference to federal regulators. In 2022, they restricted agency authority in “major questions” cases, notably limiting the Environmental Protection Agency’s power to address climate change without explicit congressional approval.
However, the phone fee case wasn’t the vehicle for extending those restrictions further.
BIPARTISAN SUPPORT FOR THE FUND
Interestingly, the Universal Service Fund has seen support from both Republican and Democratic administrations. President Donald Trump’s administration defended the FCC’s authority over the program, even as it pursued broader efforts to limit regulatory power elsewhere. The challenge to the USF was originally filed during President Joe Biden’s tenure.
The ruling ensures the continued funding of essential broadband and phone services, keeping millions of students connected in classrooms, sustaining library internet hubs, and linking remote communities to vital resources.
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