July 13, 2025

Account

The Actual News

Just the Facts, from multiple news sources.

Supreme Court OKs fee that subsidizes phone, internet services in schools, libraries and rural areas

Supreme Court OKs fee that subsidizes phone, internet services in schools, libraries and rural areas

Summary

The Supreme Court upheld a fee added to phone bills that funds phone and internet services for schools, libraries, and rural areas. By a 6-3 vote, the justices overturned a lower court's decision that the funding method was unconstitutional. The fee, part of the Universal Service Fund, has been used for nearly 30 years to help many Americans get online access.

Key Facts

  • The Supreme Court decided in a 6-3 vote to keep a fee on phone bills that helps provide internet and phone services in certain areas.
  • The Universal Service Fund collects this fee and has been in place for almost 30 years.
  • The Federal Communications Commission (FCC) gets the money from telecom companies, which pass the cost to customers.
  • A conservative group, Consumers’ Research, argued against the fee, saying it was unconstitutional.
  • The appeals court had ruled that the way the fee was implemented gave too much power to the FCC and a private administrator.
  • The Supreme Court disagreed with the appeals court and decided the fee could stay.
  • This decision comes amid discussions on limiting the power of federal agencies.
  • The case highlights how federal regulations have been supported and challenged over the years.

Source Information