The Supreme Court on Nov. 22 agreed to hear the Federal Communications Commission’s (FCC) appeal of a lower court ruling that struck down an $8-billion-a-year broadband subsidy.
The court’s new decision in FCC v. Consumers’ Research came in the form of an unsigned order. The court did not explain its ruling. No justices dissented.
The court consolidated the case with a related appeal, SHLB Coalition v. Consumers’ Research, referring to the Schools, Health & Libraries Broadband Coalition. The two cases will be heard together. No hearing date has been scheduled.
On July 24, the U.S. Court of Appeals for the Fifth Circuit determined that the Universal Service Fund (USF) was unconstitutional because it took taxing power away from Congress.
The fund was authorized by Congress in the Telecommunications Act of 1996 to provide subsidies for telecommunications services, including internet service, according to the FCC. The fund subsidizes telephone companies serving high-cost regions, low-income customers, rural health care providers, schools, and libraries. […]
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