Broadband Breakfast reports...

The Supreme Court on Friday overturned a Fifth Circuit decision that found the $9 billion-per-year Universal Service Fund unconstitutional.

The Federal Communications Commission program supports rural broadband networks, plus internet discounts for low-income households, schools and libraries and healthcare centers. It’s been funded since the 1990s by fees on interstate voice revenue, with the accounting work delegated to the Universal Service Administrative Company, which the FCC set up for the purpose.

Conservative nonprofit Consumers’ Research had alleged the fund was unconstitutional, arguing Congress didn’t put enough guardrails on the FCC’s ability to collect fees as part of the fund, and that the agency improperly delegated authority to USAC. The Fifth Circuit had ruled the combination of the two illegally took taxing power away from the legislature.