The Supreme Court on June 27 issued a 6-3 ruling that upholds the constitutionality of the Federal Communications Commission’s (FCC) Universal Service Fund (USF).
The USF was created in 1997 with the goal of making telecommunications services – including internet services – more accessible and affordable for all Americans, especially those in rural, low-income, and high-cost areas. USF collects money from telecom service providers to fund that effort.
The program also provides funding for E-Rate, which helps schools and libraries get affordable internet access.
“For nearly three decades, the work of Congress and the Commission in establishing universal-service programs has led to a more fully connected country. And it has done so while leaving fully intact the separation of powers integral to our Constitution,” Justice Elena Kagan wrote in the majority opinion.
Three liberal justices and three conservatives formed the court’s majority. Three other conservatives – Justices Clarence Thomas, Samuel Alito, and Neil Gorsuch – dissented.
The court’s ruling is a win for those who rely on USF to help pay for their internet bills. The decision was celebrated by lawmakers on both sides of the aisle, as well as the FCC.
“Universal service is the cornerstone of the FCC’s mission. I welcome the Supreme Court’s decision and 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 Commissioner Olivia Trusty said in a statement.
“Reliable, high-speed broadband access is no longer a luxury – it’s a fundamental pillar of modern life. The Universal Service Fund has been a savior for millions of Americans, expanding broadband access for our schools, libraries, rural hospitals, and underserved communities across the nation,” said Rep. Doris Matsui, D-Calif. “The Supreme Court rightfully upheld the constitutionality of this critical program.”
House Energy and Commerce Committee Chairman Brett Guthrie, R-Ky., and Subcommittee on Communications and Technology Chairman Richard Hudson, R-N.C., also issued a joint statement celebrating the high court’s decision.
“We are glad to see the Supreme Court uphold the constitutionality of the Universal Service Fund, which is critical for expanding reliable internet access to rural and low-income Americans, schools, libraries, and rural health centers,” said Reps. Guthrie and Hudson. “The Committee on Energy and Commerce can now turn its attention to reforming the USF so it can continue to provide every American with access to the connectivity they need to participate in the 21st century economy.”
Notably, lawmakers announced the reconstitution of the Universal Service Fund (USF) Working Group earlier this month.
The bipartisan, bicameral working group – originally launched in 2023 – aims to evaluate and propose potential reforms to the USF, with the goal of developing a bipartisan forum to guide education and policymaking.