The U.S. Supreme Court agreed on Friday to decide the legality of a congressionally authorized fund operated by the Federal Communications Commission to expand access to telecommunications services in a challenge accusing Congress of unlawfully delegating its authority to an independent federal agency, Reuters reported.
The Justices took up an appeal by the FCC and a coalition of interest groups and telecommunications firms of a lower court’s decision that found Congress violated the U.S. Constitution by empowering the FCC to manage the fund. The court is expected to hear arguments in the case and issue a ruling by the end of June.
Congress, in a federal law called the Telecommunications Act of 1996 authorized the FCC to operate the Universal Service Fund to promote broad access to services such as phone and broadband internet.
All telecommunications carriers contribute to the fund, which draws around $9 billion annually. The fund helps to extend service to people in rural areas, provides subsidies for low-income Americans, expands services Native American tribal lands and assists schools and libraries.
A group of challengers including the conservative group Consumers’ Research filed lawsuits against the FCC and the U.S. government, arguing that Congress delegated its revenue-raising function to the FCC in violation of the Constitution. The challengers also argued that the FCC unlawful transferred its authority to the Universal Service Administration Company, a private, nonprofit that helps the agency administer the fund.
CBS News reported: The Supreme Court on Friday said it will consider the constitutionality of the Federal Communications Commission’s Universal Service Fund, agreeing to review a lower court decision that upended the mechanism for funding programs that provide communications services to rural areas, low-income communities, and schools, libraries and hospitals.
The dispute is the latest in which the high court will consider the power of federal agencies. Among the issues in the case is whether Congress delegated too much authority to the FCC when it tasked the agency with determining how much telecommunications providers must contribute to the Universal Service Fund.
The court also asked the lawyers involved in the case to argue whether it is moot because the challengers did not seek preliminary relief before the court.
The Supreme Court’s conservative majority has in a string of recent decisions taken aim at federal regulatory power amid efforts by the conservative legal movement to rein in the so-called administrative state.
NBC News reported The Supreme Court could further weaken the power of federal agencies by agreeing on Friday to hear a dispute over a Federal Communications Commission program that requires companies to subsidize telecommunications services in underserved areas.
The case marks the latest opportunity for business interests to hobble regulators at a court with a 6-3 conservative majority sympathetic to their arguments.
The court left open the possibility of sidestepping a ruling in the case by asking the lawyers to argue whether the legal dispute might be moot.
In my opinion, we will have to wait and see what the Supreme Court Justices decide about the FCC Commissions fund. It sounds like the Justices will provide a decision June.