Supreme Court Weighs Fate of $8 Billion Telecom Subsidy
2025-03-26
The Supreme Court is hearing a case that could determine the fate of an $8 billion annual subsidy for phone and internet services in schools, libraries, and rural areas. The Universal Service Fund, which is funded by a tax on phone bills, is challenged on constitutional grounds. While both liberal and conservative justices expressed concern over the potential consequences of eliminating the fund, some justices questioned the level of authority delegated to the FCC and its reliance on a private administrator. A decision is expected by late June, with significant implications for tens of millions of Americans.