June 27, 2025
Supreme Court saves $8 billion rural broadband fund in 6-3 ruling
Supreme Court preserves $8 billion in rural broadband subsidies.
🚇Infrastructure📜Constitutional Law💡Technology
In a 6-3 decision, the Supreme Court ruled that the Universal Service Fund's contribution mechanism does not violate the Constitution's nondelegation doctrine, with Justice Elena Kagan writing for a bipartisan majority that preserves $8 billion annually in subsidies for rural, low-income, and institutional broadband access.
On June 27, 2025, the Supreme Court ruled 6–3 to uphold the Universal Service Fund’s contribution mechanism against a nondelegation challenge.
The Fund distributes $8 billion each year across four programs: high-cost rural broadband and phone service, Lifeline for low-income households, E-rate for schools and libraries, and Rural Health Care support.
About 21 million rural Americans receive broadband service, 9 million low-income households get discounted internet, and 100,000 schools and libraries are connected—serving roughly 30 million people total.
The Fund is financed by quarterly FCC-determined contributions from telecommunications companies (shown as line-item charges on consumer bills), not by direct congressional appropriations.
A three-way circuit split prompted Supreme Court review: the Fifth Circuit invalidated the Fund in a 9–7 decision, while the Sixth and Eleventh Circuits had upheld it.
The Rural Health Care program alone provides $468.2 million for telemedicine, electronic health records and connectivity in rural hospitals and clinics.
The Universal Service Administrative Company (USAC), a private nonprofit operating under FCC oversight, administers the Fund’s day-to-day operations.
This case was the first serious nondelegation challenge since 1935; the Court found that Congress’s statutory guidelines for the Fund satisfied the “intelligible principle” standard.
🚇Infrastructure📜Constitutional Law💡Technology
People, bills, and sources
What You Can Do
1
Track legislation and budget provisions on congress.gov by searching for “Universal Service Fund” or related appropriations bills.
2
Visit the FCC’s website (fcc.gov) to review quarterly contribution rate filings and submit comments during open dockets.
3
Use the official congressional directory (via house.gov and senate.gov) to contact your U.S. Representative and Senators about rural broadband priorities.
4
Consult the Supreme Court’s website (supremecourt.gov) for full opinions and to follow how doctrines like nondelegation evolve.
5
Explore usac.org for details on program eligibility, service maps and local implementation of USF-supported broadband projects.
6
Learn more about constitutional doctrines and agency authority through resources like aclu.org or OLC opinions available in the Federal Register.
7
Engage with your state broadband office or local library to understand how USF funds are applied in your community and provide feedback.