The U.S. Supreme Court upheld the Federal Communications Commission’s authority to manage the Universal Service Fund (USF), which supports phone and broadband access. The 6–3 decision reversed a lower court ruling that had found the fund’s structure unconstitutional.
The USF, established under the Telecommunications Act of 1996, collects about $9 billion annually from telecom providers. These funds are distributed to support communications services in rural areas, tribal lands, low-income households, schools, libraries, and healthcare providers, Reuters news report said.
Challengers, including Consumers’ Research, argued that Congress had improperly delegated taxing authority to the FCC and a private administrator. The Court ruled that Congress provided enough direction for the FCC to operate the fund legally. The FCC oversees the fund through the Universal Service Administrative Company.
FCC Chairman Brendan Carr said: “For years, the FCC’s universal service program has played a key role in expanding connectivity and Internet service to Americans in communities across the country. In my time on the Commission, I have had the opportunity to see firsthand the benefits that have come with the connections powered by the agency’s USF program.”
FCC Commissioner Anna Gomez acknowledged the ruling and called on Congress to review the program’s structure.
FCC Commissioner Olivia Trusty said: “Universal service is the cornerstone of the FCC’s mission. I look forward to working with my colleagues and Congress on thoughtful reforms to the universal service program to expand access to critical communications services and close the digital divide.”
FCC’s $9 bn Broadband Fund
FCC’s $9 bn broadband fund — under the Rural Digital Opportunity Fund (RDOF) — is aimed at expanding internet access in underserved rural areas across 49 states and the Northern Mariana Islands. The initiative, rolled out in two phases, supported the deployment of broadband infrastructure to more than 5.2 million unserved homes and businesses.
In the first phase of the RDOF auction, 180 telecom service providers won funding commitments over a 10-year period. The winners included a wide mix of operators such as large cable companies, rural electric cooperatives, satellite internet providers, and fixed-wireless firms.
Among the top beneficiaries, LTD Broadband secured $1.3 billion, Charter Communications received $1.22 billion, the Rural Electric Cooperative Consortium was awarded $1.1 billion, and SpaceX’s Starlink won $885 million. Other notable recipients included Windstream and Frontier, which secured $523 million and $371 million respectively.
The majority of the locations covered received broadband speeds of at least 100/20 Mbps, with over 85 percent of the deployments promising gigabit-speed service. Although the initial budget for Phase I was $16 billion, only $9.2 billion was allocated, with the remaining $6.8 billion expected to be rolled into Phase II of the program.
Baburajan Kizhakedath
