FCC’s $8 Billion Phone Subsidy Survives Supreme Court Challenge

The US Supreme Court declined to question the $8 billion annual subsidy that helps cover the cost of telecom services for poor people and residents of rural areas, turning away two appeals that sought to rein in federal regulatory power. The rebuff, which came without comment, leaves intact the decades-old Universal Service Fund, which uses a charge imposed on monthly phone bills to help more than 8 million people afford service. A group led by the conservative advocacy organization Consumers’ Research challenged the program as giving too much power to the Federal Communications Commission and the private entity that administers the fund. The Biden administration urged the Supreme Court to reject the appeals without a hearing. The broadband industry supported the Universal Service program during the court fight, saying companies have made major investments in hard-to-reach areas in reliance on the subsidies. Telecommunications providers such as AT&T and Verizon collect the fees from customers and funnel the money back into the program.