Supreme Court Upholds Universal Service Fund
In a 6-3 decision, the United States Supreme Court has upheld the constitutionality of the Universal Service Fund, the primary funding source behind the E-Rate program.
E-Rate is one of four USF-funded mechanisms created to help ensure all Americans have access to "rapid, efficient, nationwide communications service with adequate facilities at reasonable charges":
- High Cost Support Mechanism, which provides support to qualifying telephone companies that serve high-cost areas, in order to make phone service in those regions more affordable;
- Low Income Support Mechanism, which helps low-income customers pay for telephone service;
- Rural Health Care Support Mechanism, which allows rural health care providers to pay for telecommunications services at rates similar to their urban counterparts; and
- Schools and Libraries Support Mechanism (a.k.a. "E-Rate"), which funds telecommunications services, internet access, and internal connections to eligible schools and libraries.
The primary arguments against the USF claimed that the USF contribution factor is a "misbegotten tax," that Congress improperly delegated its taxing authority to the FCC, and that the FCC improperly delegated administration of the fund to the Universal Service Administrative Company.
The Supreme Court decision rejects these arguments, emphasizing that at its essence, the USF contribution scheme ensures that everyone "has access to a communications service that is both affordable and essential to modern life."
"For years, the FCC's universal service program has played a key role in expanding connectivity and Internet service to Americans in communities across the country," commented FCC Chairman Brendan Carr, in a statement. "In my time on the Commission, I have had the opportunity to see firsthand the benefits that have come with the connections powered by the agency's USF program. I am glad to see the Court's decision today and welcome it as an opportunity to turn the FCC's focus towards the types of reforms necessary to ensure that all Americans have a fair shot at next-generation connectivity."
About the Author
Rhea Kelly is editor in chief for Campus Technology, THE Journal, and Spaces4Learning. She can be reached at [email protected].