The U.S. Supreme Court declined Monday to review whether the country’s fee-based telecom subsidy system unlawfully delegates taxing powers from Congress to the Federal Communications Commission and a privately run administrator.
High Court Won’t Review FCC’s Universal Service Fund : Justices Reject Petition
The justices rejected a free-market litigation group’s petition to consider whether the Universal Service Fund (USF) violates the Constitution by transferring authority reserved for lawmakers. The decision, part of an order list, does not explain the court’s reasoning.
Litigants Argue for Review
Consumers’ Research and other litigants asked the high court to review the case due to a potential circuit split. The Sixth Circuit and Eleventh Circuit have sided with the FCC’s position that Congress provided adequate direction to the agency when it created the universal service programs. The Fifth Circuit panel, like the other courts, also upheld the FCC’s subsidy system. However, the full Fifth Circuit is currently reviewing that panel’s decision and has not yet decided the issue.
