Universal Service Fund

How much power may Congress hand off to the Washington bureaucracy? That’s a live question, so grab the popcorn to read a decision by the Fifth Circuit Court of Appeals. In a 9-7 en banc ruling, it invalidated a “universal service” surcharge added to cellphone bills.

Sen Josh Hawley (R-MO) introduced new legislation to help deliver reliable internet to more rural Americans by returning dormant federal funding back to the state it was intended for. The Federal Communications Commission’s current funding structure favors large companies that reap billions in federal government contracts meant to provide high-speed internet access to rural communities.

Perkins Coie Partner Marc Martin, a lawyer who helps companies understand Federal Communications Commission rules, expects multiple FCC cases to go before the Supreme Court. Martin called the recent Fifth Circuit Court of Appeals decision about the Universal Service Fund (USF)—ruling that the framework through which the FCC created the USF is unconstitutional—“a shock to the industry.” He referred to the Fifth Circuit Court as a “forum-shopping pla

An appeals court ruled the current structure of the Universal Service Fund is unconstitutional. This decision puts at risk the high-speed connectivity of millions of rural and low-income Americans and the future trajectory of U.S. economic growth and global competitiveness. Now it’s Congress’s duty to promptly and decisively make clear the nation’s unwavering commitment to affordable, universal connectivity. The court’s fundamentally flawed decision hands Congress an enormously important opportunity to seize the initiative and ensure our nation’s abiding commitment to universal service.

The Federal Communications Commission's Wireline Competition Bureau (Bureau) announced updated minimum service standards for Lifeline-supported services as required by the 2016 Lifeline Order. The 2016 Lifeline Order established minimum service standards for certain Lifeline-supported services and established annual increases in those standards either in the FCC’s rules or pursuant to calculations set out in the Order and the FCC’s rules.  Accordingly, the Bureau announced the newly calculated minimum service standard for fixed broadband data usage allowance, which is the same as the curren

The death of the US government's Affordable Connectivity Program (ACP) is starting to result in disconnection of Internet service for Americans with low incomes. Charter Communications reported a net loss of 154,000 Internet subscribers that it said was mostly driven by customers canceling after losing the federal discount.

For several years now, a well-funded litigation group has sought an appellate court decision deeming the current method of funding the Federal Communications Commission's Universal Service Fund unconstitutional. The litigants finally hit paydirt in an enbanc appeal to the Fifth Circuit Court of Appeals that ruled in their favor on a 9-7 vote. The litigants ostensibly expressed concerns about constitutional rights, economic freedom, what constitutes a tax, how specific a congressional delegation of authority has to be, and the extent to which the FCC could lawfully delegate administration of

In a ruling that quickly caused shock waves in the U.S. telecommunications industry, the Fifth Circuit Court of Appeals ruled, 9-7, that the Universal Service Fund (USF) is unconstitutional as currently administered. The Court explained its ruling by saying that the USF is a “misbegotten tax” that violates Article I, § 1 of the Constitution, which states that all legislative powers are given to Congress, which is made up of the Senate and the House of Representatives.

Sen Chris Van Hollen (D-MD), Baltimore City Mayor Brandon Scott (D-MD), and Federal Communications Commission Chairwoman Jessica Rosenworcel spoke about plans to expand internet connectivity in Baltimore. The Enoch Pratt Free Library currently has about 2,000 hotspots in circulation. According to Meghan McCorkell, Enoch Pratt Free Library’s chief of marketing, communications and strategy, about 969 people are waiting for a hotspot.

After the Fifth Circuit ruled, 9-7, that the Universal Service Fund is unconstitutional as currently administered, we've seen the following responses.