Summary

The U.S. Supreme Court will hear a case challenging the legality of the FCC’s Universal Service Fund, which raises $9 billion annually to expand phone and internet access.

The 5th Circuit Court previously ruled the fund unconstitutional.

It held that Congress improperly delegated legislative power to the FCC and that the FCC unlawfully transferred authority to a private company, the Universal Service Administrative Company.

The FCC defends the fund as lawful, citing congressional authorization. A decision is expected by June, amid heightened scrutiny of federal agency powers.