Fifth Circuit Court Rules 9 to 7 FCC's Universal Service Fund Unconstitutional

Jul 24, 2024, 06:25 PM

The en banc Fifth Circuit Court has ruled that the Federal Communications Commission's (FCC) Universal Service Fund is unconstitutional. The court held that the FCC's delegation of the administration of this fund to the Universal Service Administrative Company (USAC), a private entity, violates the nondelegation doctrine. The ruling, delivered by Judge Andrew Oldham, concluded that American telecommunications consumers are subjected to a multibillion-dollar tax that was not voted on, effectively determined by a private company. The fund was intended to subsidize telecommunications services for rural and low-income users. The decision was made with a narrow vote of 9 to 7.