Universal Service Administrative Company

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In a 6-3 decision, the Supreme Court held that the Federal Communications Commission (FCC)’s Universal Service Program (USP) does not violate the nondelegation doctrine. Justice Kagan wrote the majority opinion in FCC v. Consumers’ Research and Schools, Health & Libraries Broadband Coalition v. Consumers’ Research, with Justices Kavanaugh and Jackson filing separate concurrences. Justice Gorsuch dissented, joined by Justices Thomas and Alito.

Continue Reading Decision Alert: Supreme Court Rejects Nondelegation Challenge to FCC’s Universal Service Program

In a case with potentially sweeping implications for administrative and constitutional law, the Supreme Court is weighing whether the Federal Communications Commission’s (FCC) administration of universal telecommunications services violates the nondelegation doctrine—a principle that limits Congress’s ability to transfer legislative authority to agencies or private entities.

Continue Reading Supreme Court Considers Nondelegation Challenge to FCC’s Universal Service Program

Congress authorized the Federal Communications Commission (FCC) to establish and implement universal service subsidy programs to promote affordable and reliable nationwide communications services funded by mandatory contributions from telecommunications carriers. 47 U.S.C. § 254. As part of the regulatory scheme to implement its programs, the FCC appointed the Universal Service Administrative Company (USAC), a private company, to administer the programs. Among its tasks, the USAC calculates projections used in computing universal service contribution rates (a tax determined by a private entity according to the Fifth Circuit), which the FCC may adopt.

Continue Reading Grant Alert: The Court Continues To Scrutinize the Administrative State but Questions the Claimed Procedural Laxity of Challenges to Agency Action