TheHigh CourtHears arguments on Wednesday in a big legal struggle for $ 8 billion a year that the federal government spendsSubsidies of telephone and internet servicesIn schools, libraries and rural areas in the new test of federal regulatory power.
Justice reviews the appealrulingthat have planted as unconstitutional Universal Service fund, tax that has been added to phone accounts for almost 30 years.
Tens of millions of Americans benefit from the programs that receive money from the fund, and its elimination “would cause serious disruption”, the lawyers wrote for the Association of Telecommunications Companies.
Federal CommissionHe collects money from telecommunications providers who then pass on their customers.
Conservative lawyer group, consumer research, questioned this practice. The judges have previously denied two consumer research appeal after the Federal appeal program confirmed the program. However, the entire Court of Appeal for the US District Court, among the most conservative nation, decided 9-7 that the funding method is unconstitutional.
The fifth district decided that Congress gave FCC too much powers and the agency advanced too much power to a private entity or administrator.
The last time the Supreme Court referred to what is called the doctrine without a delegation that strikes the federal law in 1935.
The Conservative Court has also reinforced in federal agencies in high -ranking decisions in recent years. Last year the courtturned a 40 -year -old caseThis was used thousands of times to comply with federal regulations. In 2022, the court ruled that Congress had to deal with a specificity before the agencies can deal with“Main questions,”In a decision that limited the ability of the Agency for Environmental Protection to fight climate change.
Trump's administration, which has moved aggressively to limit administrative agencies in other areas, defends the FCC program. The appeal was originally filed by Biden.
“Neither the congress of the FCC authority, the FCC dependence on the advice of the administrator or the combination of these two violates the constitution,” wrote Sarah Harris, a short court.
Consumer research calls the “Scenario of Nightmares” the situation in which Congress has set no restrictions on how much the FCC can increase for the financing of the program. “The USF tax rate increased sharply. In 1998 it was below 4%, but now 37%is approaching,” the lawyers wrote.
They said there was an easy repair: Congress can make suitable money for the program, or at least set the maximum rate.
Last year, howeverAffordable Connection ProgramAnd FCC moved to fill the gap by providing money from the e-Orate program, one of the few funded by the Universal Service Fund.
Congress created the Universal Service Fund within its 1996 General General, aimed at promoting competition and removing monopolies. Subsidies for rural and low incomes were to ensure that telephone and internet services remain available.
The decision is expected by the end of June.
This story was originally listed on Fortune.com
