Supreme Court to Rule on FCC's Controversial Funding Mechanism

The U.S. Supreme Court will review the FCC's defense of its funding mechanism for expanding internet access. The case challenges Congress's delegation of revenue-raising authority to the FCC. A Court decision is expected by June, amid differing appellate rulings on the issue.

The U.S. Supreme Court is set to hear a pivotal case concerning the Federal Communications Commission's funding mechanism for expanding broadband and phone access to low-income and rural Americans. The case involves a legal principle that questions Congress's authority in delegating powers to federal agencies.

The controversy stems from the FCC's reliance on a multi-billion dollar Universal Service Fund, funded by telecommunications companies but effectively financed by consumers, which a lower court ruled violated constitutional provisions by imposing a 'misbegotten tax'. A coalition of parties is challenging the FCC's authority, questioning both the delegation of legislative power and the private company's role in administering the fund.

As federal appellate courts remain divided on the issue, the Supreme Court's decision—expected by June—could have significant implications for the scope of agency power in the U.S. legal system, especially concerning the non-delegation doctrine.

(With inputs from agencies.)