Supreme Court to Rule on FCC's Telecommunications Fund Legality

The U.S. Supreme Court will decide on the legality of the FCC-managed Universal Service Fund used to expand telecommunications access. The case challenges Congress's delegation of authority to the FCC, arguing it breaches the Constitution. A ruling is anticipated by June.

The U.S. Supreme Court has agreed to review the legality of the Universal Service Fund, operated by the Federal Communications Commission, that aims to expand telecommunications access. The case challenges Congress's delegation of authority, which plaintiffs argue violates constitutional provisions.

Established under the Telecommunications Act of 1996, the fund, drawing about $9 billion annually from all telecom carriers, supports service expansion in rural areas, subsidy programs for low-income Americans, and enhancements in Native American regions, schools, and libraries.

The Supreme Court's decision will follow a contentious ruling by the 5th U.S. Circuit Court of Appeals. Industry groups welcome further legal scrutiny, underlining the program's role in ensuring affordable access to crucial communications services.

(With inputs from agencies.)