Supreme Court Backs FCC's Broadband Funding Framework

The U.S. Supreme Court endorsed the FCC's funding mechanism for expanding broadband access through the Universal Service Fund. Overturning a previous ruling, it supports mandatory telecom contributions, upholding the fund's $9 billion annual collection supporting low-income and rural areas. Critics had challenged the delegation of authority to the FCC.

In a significant judicial decision, the U.S. Supreme Court, on Friday, supported the Federal Communications Commission's funding strategy for its Universal Service Fund. The $9 billion initiative is aimed at enhancing phone and broadband access for low-income and rural Americans.

The 6-3 decision, penned by Justice Elena Kagan, overturned a lower court's ruling that criticized the FCC's funding model as an unconstitutional tax on consumers. The endorsement ensures continuous support for beneficiaries including schools, libraries, and rural communities.

The ruling comes amidst scrutiny over congressional power delegation to federal agencies like the FCC. While the FCC's methods were challenged for over-empowerment, the Supreme Court's backing allows the continuation of vital telecommunications services for underserved communities.

(With inputs from agencies.)