Consumers’ Research and its allies objected Friday to the proposed USF contribution factor for Q4, citing unanswered questions from the group’s unsuccessful challenge in the U.S. Supreme Court in late June. The factor is projected to increase from 36% in Q3 to 39.3% in Q4, based on the latest projections from the Universal Service Administrative Co. (see 2508040049).
The recently relaunched bipartisan congressional working group studying a USF legislative revamp is seeking a new round of stakeholder comments about how to proceed and has opened a portal for submissions, Senate Communications Subcommittee Chair Deb Fischer, R-Neb., said Friday. Meanwhile, the Digital Progress Institute said in a white paper Thursday that USF's current contribution mechanism is “unsustainable” and “horrendously inefficient.”
A mobile billboard truck condemning Dish Network as being “woke” was parked near FCC headquarters Thursday morning in the hours before the agency’s open meeting. Conservative group Consumers’ Research was labeled as the billboard’s sponsor. “Woke Alert. Dish Network is Pushing a Woke Agenda while Asking Conservatives for Favors,” the sign read, directing readers to WokeDishNetwork.com. The URL goes to a page on Consumers’ Research’s website, where it condemns Dish for the company’s diversity policies and CEO Charlie Ergen’s donations to Democratic Party campaigns. The FCC is currently investigating Dish’s parent company EchoStar over its use of spectrum and failure to fulfill buildout promises to the agency. In June, President Donald Trump reportedly interceded with FCC Chairman Brendan Carr on Ergen’s behalf (see 2506160039). Asked about the investigation Thursday, Carr said he “is still open-minded on a path forward” but the status quo is “unacceptable.” Dish is “sitting on” a “tremendous amount of spectrum” that isn’t being effectively utilized, Carr said. Consumers’ Research is known for litigating for conservative causes and has repeatedly challenged the legality of the FCC’s USF fund. The organization doesn’t disclose its donors, but DonorsTrust in 2022 named Consumers’ Research as among recipients of its grants totaling $242 million. DonorsTrust is a donor-advised funding provider that supports conservative groups. “We share your commitment to protecting our nation’s constitutional liberties and strengthening civil society through private institutions rather than with government programs,” said its website.
Consumers’ Research said the 5th U.S. Circuit Court of Appeals should look more closely at an issue raised in the dissent and a footnote in the majority opinion of the Supreme Court’s decision in June upholding the legality of the USF. The FCC and DOJ last week asked the 5th Circuit not to require further briefing but close the case (see 2507170063).
The FCC and DOJ on Thursday asked the 5th U.S. Circuit Court of Appeals not to require a briefing on a potential remaining issue after the U.S. Supreme Court last month rejected a Consumers’ Research challenge to the way the FCC manages the USF (see 2507020049). The problem for the FCC has been a footnote in the majority opinion, which noted that several provisions in Section 254 of the Communications Act weren't challenged and which expressed no opinion about whether those posed any additional problems for the program (see 2507150081).
The FCC avoided a potentially disastrous result when the U.S. Supreme Court upheld the USF contribution factor in its Consumers’ Research decision last month (see 2507020049), HWG’s Chris Wright said during a practitioners panel that was part of an FCBA CLE Tuesday (see 2507150081). “If the case had gone the other way” it would have “called into question almost everything in the Communications Act,” said Wright, a former FCC general counsel.
The U.S. Supreme Court’s decision last month upholding the USF in the Consumers’ Research case was a win for the FCC (see 2507020049), but the fight isn’t over, Jacob Lewis, FCC associate general counsel, said during an FCBA CLE on Tuesday. Lewis warned that Consumers’ Research has already renewed its challenge in the 5th U.S. Circuit Court of Appeals, making a different argument for overturning parts of the fund.
Lawyers for the Schools, Health & Libraries Broadband Coalition and the Benton Institute for Broadband & Society said Monday that the U.S. Supreme Court’s decision last month upholding the USF was a clean win for the program and the FCC (see 2507020049). By rejecting the challenge -- brought by Consumers’ Research, a right-wing group -- SCOTUS lifted a cloud that has loomed over the USF for years, the lawyers said during an SHLB webinar.
Leaders of the House and Senate Commerce committees who are spearheading the bipartisan congressional working group on a USF legislative revamp, which relaunched in June (see 2506120091), told us they plan to begin meeting again this month. But they said they feel less pressure to quickly reach an agreement on legislative recommendations since the U.S. Supreme Court's recent ruling in Consumers’ Research v. FCC, which found that USF’s funding mechanism is constitutional (see 2506270054). Sens. Ben Ray Lujan, D-N.M., and John Thune, R-S.D., formed the working group in 2023 as Communications Subcommittee chairman and ranking member, respectively (see 2305110066).
The U.S. Supreme Court upheld the FCC’s USF contribution scheme in a 6-3 opinion Friday in Consumers’ Research v. FCC, but dissenting and concurring opinions from several conservative justices appeared to invite future challenges, attorneys told us.