
Supreme Court takes up $8 billion phone and internet subsidy for rural and low-income areas
The Federal Communications Commission collects the money from telecommunications providers, who then pass the cost on to their customers.
A conservative advocacy group, Consumer Research, challenged the practice. The justices had previously denied two appeals from Consumer Research after federal appeals courts upheld the program. But the full 5th U.S. Circuit Court of Appeals, among the nation's most conservative, ruled 9-7 that the method of funding is unconstitutional.
Get Starting Point
A guide through the most important stories of the morning, delivered Monday through Friday.
Enter Email
Sign Up
The 5th Circuit held that Congress has given too much authority to the FCC and the agency in turn has ceded too much power to a private entity, or administrator.
Advertisement
The last time the Supreme Court invoked what is known as the non-delegation doctrine to strike down a federal law was in 1935. But several conservative justices have suggested they are open to breathing new life into the legal doctrine.
The conservative-led court also has reined in federal agencies in high-profile rulings in recent years. Last year, the court reversed a 40-year-old case that had been used thousands of times to uphold federal regulations. In 2022, the court ruled Congress has to act with specificity before agencies can address 'major questions,' in a ruling that limited the Environmental Protection Agency's ability to combat climate change.
The Trump administration, which has moved aggressively to curtail administrative agencies in other areas, is defending the FCC program. The appeal was initially filed by the Biden administration.
'Neither Congress's conferral of authority on the FCC, the FCC's reliance on advice from the administrator, nor the combination of the two violates the Constitution,' acting Solicitor General Sarah Harris wrote in a Supreme Court brief.
Advertisement
Consumer Research calls the situation a 'nightmare scenario' in which Congress has set no limits on how much the FCC can raise to fund the program. 'Predictably, the USF tax rate has skyrocketed. It was under 4% in 1998 but now approaches 37%,' lawyers for the group wrote.
They said there's an easy fix: Congress can appropriate money for the program, or at least set a maximum rate.
But last year, Congress let funding lapse for an internet subsidy program, the Affordable Connectivity Program, and the FCC moved to fill the gap by providing money from the E-rate program, one of several funded by the Universal Service Fund.
Congress created the Universal Service Fund as part of its overhaul of the telecommunications industry in 1996, aimed at promoting competition and eliminating monopolies. The subsidies for rural and low-income areas were meant to ensure that phone and internet services would remain affordable.
A decision is expected by late June.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Hill
21 minutes ago
- The Hill
Vance on LA unrest: Newsom should ‘look in mirror' and stop blaming Trump
Vice President JD Vance on Tuesday tore into California Gov. Gavin Newsom (D) for suggesting the unrest in Los Angeles is a consequence of federal involvement in state and local law enforcement efforts. 'Gavin Newsom says he didn't have a problem until Trump got involved,' Vance wrote in a post on X, attaching two photos that he said were taken before Trump ordered the National Guard to protect border patrol agents in California. One depicted rioters appearing to attack a 'border patrol' van, and another depicted a car set ablaze. The Hill was not able to verify the authenticity of the photos. 'Does this look like 'no problem'?' Vance asked. Vance suggested Newsom and Los Angeles Mayor Karen Bass 'fomented and encouraged the riots,' with the goal of promoting mass migration into the U.S., adding, 'It is their reason for being.' 'If you want to know why illegal aliens flocked to your state, stop accusing Donald Trump. Look in the mirror,' Vance said. 'If you want to know why border patrol fear for their lives over enforcing the law, look in the mirror.' Vance pointed to California's Medicaid expansion last year to low-income undocumented immigrants as an example of a policy that has 'encouraged mass migration into California.' Newsom has since proposed ending new Medicaid enrollment for undocumented adults, but his proposal faces resistance from the state legislature. 'Your policies that protected those migrants from common sense law enforcement. Your policies that offered massive welfare benefits to reward illegal immigrants. Your policies that allowed those illegal migrants (and their sympathizers) to assault our law enforcement. Your policies that allowed Los Angeles to turn into a war zone,' Vance continued. 'You sure as hell had a problem before President Trump came along. The problem is YOU,' Vance added. Vance's post is the latest in a back-and-forth between the administration and Newsom, who has resisted Trump's extraordinary steps to deploy 4,000 National Guard troops to the area and mobilize 700 active-duty marines. Newsom has insisted that the situation was under control before the Trump administration escalated tensions by making a provocative show of force. He accused Trump of 'intentionally causing chaos, terrorizing communities and endangering the principles of our great democracy.' After Trump suggested his border czar arrest Newsom, the California governor responded by saying, 'The President of the United States just called for the arrest of a sitting Governor. This is a day I hoped I would never see in America.' 'I don't care if you're a Democrat or a Republican this is a line we cannot cross as a nation — this is an unmistakable step toward authoritarianism,' Newsom added Monday afternoon. Vance then replied to Newsom, saying, 'Do your job. That's all we're asking.' 'Do YOUR job. We didn't have a problem until Trump got involved. Rescind the order. Return control to California,' Newsom responded, prompting Vance's latest response.


Axios
24 minutes ago
- Axios
Newsom denies Trump spoke to him before deploying more National Guards
California Gov. Gavin Newsom (D) on Tuesday said President Trump did not speak with him, despite deploying national military personnel to respond to Los Angeles protests. Why it matters: Trump claimed that he had spoken with the governor and criticized his handling of the rallies against Immigration and Customs Enforcement's actions. "There was no call. Not even a voicemail," Newsom said on X. "Americans should be alarmed that a President deploying Marines onto our streets doesn't even know who he's talking to." Driving the news: Trump, speaking to the media on Tuesday, said he last talked with Newsom "a day ago." "Called him up to tell him, got to do a better job," Trump said. "He's doing a bad job, causing a lot of death and a lot of potential death." Reality check: California authorities have not reported any deaths during the protests. A total of 72 people have been arrested over the past weekend, with five police officers being injured, according to local media report on Monday Context: The Marines deployed to LA have not yet responded to immigration protests.


Axios
24 minutes ago
- Axios
Black Caucus chair says Trump's actions on L.A. are impeachable
Congressional Black Caucus chair Yvette Clarke (D-N.Y.) said Tuesday she believes President Trump mobilizing the National Guard and deploying Marines to Los Angeles rises to the level of an impeachable offense. Why it matters: It's a break with House Democrats' general aversion towards impeachment from the head of one of their most powerful groups. The comment comes amid growing animosity between Democrats and the Trump administration over the president's use of law enforcement to carry out a campaign of mass deportations. The White House did not immediately respond to a request for comment. Driving the news: During a press conference, Clarke was asked if Trump's actions to quell protests in L.A. rise to the level of an impeachable offense "I definitely believe it is," she responded, "But we'll cross that bridge when we get to it." Clarke and other Democrats have argued that Trump has violated the U.S. Constitution by mobilizing the National Guard over Newsom's objections. Reality check: Democrats are highly unlikely to pursue an organized impeachment effort against Trump any time soon. Two rank-and-file members, Reps. Shri Thanedar (D-Mich.) and Al Green (D-Texas), have spearheaded their own rogue impeachment initiatives, but most Democrats have dissociated themselves with those efforts. Most Democrats are clear-eyed that impeachment would be doomed to failure with Republicans in control of Congress — and they often note that Trump won in 2024 despite previously being impeached twice. What they're saying: House Democratic Caucus chair Pete Aguilar (D-Calif.) told reporters at a subsequent press conference, "I've said before that ... House Democrats aren't focused on impeachment today."