Supreme Court to Rule on FCC's Authority over Telecom Fund

The U.S. Supreme Court will decide the legality of the FCC's management of the Universal Service Fund, which aims to expand telecom services. The challenge claims Congress unlawfully delegated power. The case, involving non-delegation doctrine, could impact services for rural and low-income users.

The U.S. Supreme Court has taken on a pivotal case concerning the legality of the Federal Communications Commission's control over a fund designed to expand access to telecommunications. This move follows claims that Congress improperly handed its authority to the FCC, raising constitutional concerns.

The Universal Service Fund, established under the Telecommunications Act of 1996, collects approximately $9 billion annually from telecom companies to enhance access in underserved regions. A key question is whether Congress overstepped its constitutional bounds by allowing the FCC to manage this fund.

The New Orleans-based 5th U.S. Circuit Court of Appeals previously ruled the fund's administration as unconstitutional. Stakeholders hope the Supreme Court will uphold the FCC's authority, which plays a crucial role in supporting rural and low-income communities. The decision could set a precedent regarding federal agency powers.

(With inputs from agencies.)