This is a landmark decision for rural Americans, including hundreds of thousands in Illinois, and a major victory for the federal agencies working to expand opportunity and improve lives across the country.https://t.co/5YyeOH16JT
— Congressman Raja Krishnamoorthi (@CongressmanRaja) June 30, 2025
The Supreme Court has upheld a federal program that provides subsidized internet and phone service to underserved communities across the United States. In a 6-3 decision, the court secured the continuation of the Universal Service Fund, a crucial initiative managed by the Federal Communications Commission (FCC). Conservative groups had challenged the program, arguing that Congress overstepped its authority by delegating its legislative powers to the FCC.
Rural & low-income communities notched a win today with today's SCOTUS decision preserving USF funding that ensures affordable phone & internet. Now, 'Congress must act to ensure adequate funding for broadband for all communities,' says NCLC's Rich Dubois https://t.co/5Nkpu7pRdL
— NCLC (@NCLC4consumers) June 27, 2025
They contended that the Universal Service Fund, which subsidizes services for rural healthcare providers, schools, libraries, and low-income households, should be considered a tax, a power constitutionally reserved for Congress alone. Justice Elena Kagan, writing for the court majority, stated that Congress’s delegation to the FCC did not violate the Constitution. She emphasized that the FCC has been effectively managing the program for years under clear legislative guidance.
The case revolved around Article I, Section I of the Constitution, which vests all legislative powers in Congress.
"It’s also a rare win at the Supreme Court for agency power…"https://t.co/KC0MFFwgqD
— Nancy Scola (@nancyscola) June 27, 2025
While this clause does not explicitly address whether Congress can delegate its powers, some conservatives have long argued against any form of delegation. Congress established the FCC 90 years ago to regulate and ensure the provision of reliable and affordable telecommunications services nationwide.
Today's Supreme Court nondelegation decision probably reached wrong result. But it contains valuable resources for those of us who want stronger enforcement of nondelegation constraints on executive power – including on tariffs. See my discussion here: https://t.co/GEa5FCSt5f
— Ilya Somin (@IlyaSomin) June 27, 2025
The court supports Universal Service Fund
As technology evolved, the Communications Act of 1996 was enacted, incorporating the Universal Service Fund to ensure high-quality telephone and internet access for rural areas. Telecommunications companies contribute to the fund, which now amounts to $8 billion, to support these services.
Justice Neil Gorsuch, along with Justices Samuel Alito and Clarence Thomas, dissented. Gorsuch argued that the Constitution grants only elected representatives the power to determine tax collection and rates, aligning with the challengers’ views. The FCC defended the program, asserting that the Universal Service Fund is not a tax and that Congress provided adequate guidelines for its management.
“Somebody’s got to run the program,” said former Republican FCC chairman Richard Wiley. “Congress can’t manage the program once it’s set up.
A previous ruling by the conservative Fifth Circuit sided with the challengers, declaring that Congress unlawfully delegated its taxing power to the FCC and invalidating the Universal Service Fund. However, the Supreme Court has now reversed that decision, ensuring continued access to vital telecommunications services for rural and underserved communities nationwide.
This ruling reinforces the structure of the Universal Service Fund, thwarting efforts to limit Congressional delegation of powers, and maintaining essential internet and phone service access for millions of Americans.
Senior Software Engineer with a passion for building practical, user-centric applications. He specializes in full-stack development with a strong focus on crafting elegant, performant interfaces and scalable backend solutions. With experience leading teams and delivering robust, end-to-end products, he thrives on solving complex problems through clean and efficient code.
