FOR IMMEDIATE RELEASE: Supreme Court Upholds Constitutionality of the Universal Service Fund

In a 6-3 vote, the United States Supreme Court issued a ruling holding that the universal-service contribution scheme does not violate the nondelegation doctrine.

Media Contact: Greg Guice - greg@vernonburggroup.com

WASHINGTON, June 27, 2025 - Today, by a 6-3 vote, the United States Supreme Court issued a ruling that upheld the constitutionality of the Federal Communications Commission Universal Service Fund contribution mechanism and the appointment of the Universal Service Administrative Company (USAC) to manage the daily functioning of the program.

The following is attributed to Greg Guice, Chief Policy Officer of Vernonburg Group and President of the Affordable Broadband Campaign.

“The Court correctly decided that Congress appropriately gave the FCC the power to collect Universal Service Fund fees to fulfill its statutory mandate “to make available, so far as possible, to all the people of the United States, a rapid, efficient, Nationwide, and world-wide wire and radio communication service with adequate facilities at reasonable charges.” The Court decided that “[u]nder the usual intelligible-principle test, the universal-service contribution scheme clears the nondelegation bar.” And that “the Consumers’ Research position [would produce] absurd results, divorced from any reasonable understanding of constitutional values.”

While it is really good news that the Supreme Court has upheld the constitutionality of the Fund and USAC’s role in administering it, the Court’s decision today does not fix the fact that the Fund is in desperate need of reform to ensure its long-term health and mission. There are too few contributors to a fund that is more important today than it has ever been, and the low-income subsidy in particular is far too meager to ensure that the most vulnerable are connected to a tool that is essential for full participation in society and the economy. This decision is a call to action.

We are heartened to see that the Universal Service Fund Working Group has been reconstituted, but there is no time waste. The Affordable Broadband Campaign looks forward to working with the Working Group and the broad group of stakeholders that we have assembled to ensure that the Universal Service Fund meets the connectivity needs of US households now and in the future.”

***The Affordable Broadband Campaign is a 501(c)(4) dedicated to helping secure long-term funding for low-income families so they can afford to get and stay connected to broadband service.***