The U.S. Supreme Court is set to rule on the legal bounds of the Federal Communications Commission's authority.
The Daily Caller reported that the high court will decide if Congress improperly delegated powers to the FCC concerning the Universal Service Fund.
Last Friday, the Supreme Court consented to evaluate the legality of the Universal Service Fund, which is overseen by the FCC.
This follows a lower court’s determination that the congressional delegation of this authority might have been unconstitutional.
The Universal Service Fund was instituted by the 1996 Telecommunications Act. It collects about $9 billion each year from telecommunications carriers.
These funds are utilized to expand services to rural areas, assist low-income Americans, support telecommunications on Native American lands, and enhance connectivity for schools and libraries.
A significant legal challenge brought against the FCC and the U.S. government by Consumers’ Research and other parties has propelled this issue to the forefront. They argue that Congress's delegation of revenue-raising powers to the FCC is unconstitutional.
The crux of the case involves the nondelegation doctrine. This legal principle asserts that Congress cannot transfer its legislative responsibilities to other entities, a doctrine central to the case at hand. The Supreme Court's decision could clarify the extent of Congress's ability to delegate such powers.
This issue has generated divergent opinions across federal appellate courts, indicating a significant legal debate about the scope of congressional authority to delegate duties.
Three major industry groups, including representatives from companies like AT&T, Verizon, and T-Mobile, have hailed the Supreme Court's move to revisit the case
. They underscore the importance of the Universal Service Fund's continued operation for essential communication services across the U.S.
“It threatens to undermine universal service programs that, for many decades, have served to promote the availability and affordability of critical communications services for millions of rural and low-income consumers, rural health care facilities, and schools and libraries across the nation,” a spokesperson for the telecommunications firms stated.
The outcome of this case is eagerly anticipated by many, as it will set a precedent for the limits of congressional delegation.
A decision by the Supreme Court is expected by late June, which will significantly impact the regulatory framework governing telecommunications in the United States.
The FCC’s decision to transfer some administrative duties to the Universal Service Administrative Company, a private nonprofit, is also under scrutiny in this lawsuit.
If the Supreme Court finds that the delegation was indeed unconstitutional, it could lead to substantial changes in how federal agencies operate and are overseen. This decision could also affect other regulatory bodies and their future operations.
The review by the Supreme Court not only highlights the critical nature of the FCC’s functions but also brings into question the broader practices of congressional delegations across various federal agencies.
