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Supreme Court case may eliminate monthly phone, internet and cable fee

The Supreme Court is reviewing the legality of the Universal Service Fund (USF), used to fund phone and internet services in schools, libraries and rural areas.

Supreme Court case may eliminate monthly phone, internet and cable fee

The Supreme Court is reviewing the legality of the Universal Service Fund (USF), used to fund phone and internet services in schools, libraries and rural areas.

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Supreme Court case may eliminate monthly phone, internet and cable fee

The Supreme Court is reviewing the legality of the Universal Service Fund (USF), used to fund phone and internet services in schools, libraries and rural areas.

The Supreme Court is reviewing a case that could eliminate what's known as the Universal Service Fund (USF), a monthly charge that adds up to a few dollars a month on phone, internet, and cable bills.Congress instructed the Federal Communications Commission to establish the USF, delegating the task to an outside nonprofit, which sets the rates and rules to collect fees from telecommunications providers. Challengers argue the fee structure is illegal. But advocates highlight the bipartisan popularity of the $8 billion per year fund, which has reliably paid for phone and internet services in schools, libraries and rural areas for nearly three decades."Funding needs to be predictable, sustainable, and long-term," Joey Wender, executive director of the Schools, Health & Libraries Broadband Coalition, said. "That's why you need a dedicated fund devoted solely to ensuring all Americans are connected to the internet."It is the latest case the court has taken up examining if executive branch agencies have too much power."The existing non-delegation doctrine has allowed agencies to get stronger and stronger, and that's allowed Congress to atrophy," Boston College Law School's Daniel Lyons said. "Congress is no longer making the big decisions."The FCC directly funds four programs with the USF fees. First, the E-Rate program, which helps more than 50 million kids get online at school. A second, similar initiative helps health care providers. Third, it funds work for telecommunications companies building networks in rural areas, and fourth, it discounts cell phone service for low-income individuals.The programs are separate from the $42 billion allocated by Congress for the Biden administration's Bipartisan Infrastructure Law, providing high-speed internet across the country. Republicans and the Trump administration are currently proposing changes and cuts to the program.An appeals court in Louisiana ruled the fee structure was unconstitutional, leading to Wednesday's Supreme Court arguments. A ruling on the case is expected in late spring or early summer.

The Supreme Court is reviewing a case that could eliminate what's known as the Universal Service Fund (USF), a monthly charge that adds up to a few dollars a month on phone, internet, and cable bills.

Congress instructed the Federal Communications Commission to establish the USF, delegating the task to an outside nonprofit, which sets the rates and rules to collect fees from telecommunications providers.

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Challengers argue the fee structure is illegal. But advocates highlight the bipartisan popularity of the $8 billion per year fund, which has reliably paid for phone and internet services in schools, libraries and rural areas for nearly three decades.

"Funding needs to be predictable, sustainable, and long-term," Joey Wender, executive director of the Schools, Health & Libraries Broadband Coalition, said. "That's why you need a dedicated fund devoted solely to ensuring all Americans are connected to the internet."

It is the latest case the court has taken up examining if executive branch agencies have too much power.

"The existing non-delegation doctrine has allowed agencies to get stronger and stronger, and that's allowed Congress to atrophy," Boston College Law School's Daniel Lyons said. "Congress is no longer making the big decisions."

The FCC directly funds four programs with the USF fees. First, the E-Rate program, which helps more than 50 million kids get online at school. A second, similar initiative helps health care providers. Third, it funds work for telecommunications companies building networks in rural areas, and fourth, it discounts cell phone service for low-income individuals.

The programs are separate from the $42 billion allocated by Congress for the Biden administration's Bipartisan Infrastructure Law, providing high-speed internet across the country. Republicans and the Trump administration are currently proposing changes and cuts to the program.

An appeals court in Louisiana ruled the fee structure was unconstitutional, leading to Wednesday's Supreme Court arguments. A ruling on the case is expected in late spring or early summer.