March 31, 2025
The Supreme Court last week seemed poised to uphold the federal program that provides schools, libraries, and underserved areas with access to affordable telephone and high-speed internet services. A conservative consumer advocacy group challenged the program, arguing it violated the Constitution by outsourcing Congress’s power to the Federal Communications Commission and a private nonprofit corporation that helps to administer the program. But after nearly three hours of oral arguments, justices across the bench were skeptical of the group’s claims. Congress created the Universal Service Fund as part of the Telecommunications Act of 1996 to ensure that all U.S. residents and businesses – including schools, libraries, and rural health care providers – have access to the same kinds of telephone and internet services at roughly the same rate. The Universal Service Administrative Company, a nonprofit created by the FCC, helps to administer the fund. Contributions by telecommunications carriers to the fund are calculated each quarter, and the carriers pass those costs on to their customers.