The U.S. Supreme Court ruled 6-3 on Friday in Consumers’ Research v. FCC that the USF's contribution scheme doesn’t violate the non-delegation doctrine. The decision overturned an en banc ruling from the 5th U.S. Circuit Court of Appeals. Justice Elena Kagan wrote the majority opinion, while Justice Neil Gorsuch wrote a dissent, which was joined by Samuel Alito and Clarence Thomas.
Consumers’ Research and other conservative interests are once again asking the FCC to zero out the USF contribution factor, this time for Q3 2025. The group filed the day after the FCC Office of Managing Director proposed a contribution factor of 36% for Q3 (see 2506110058). The U.S. Supreme Court is expected to rule in coming days on an appeal of a 5th Circuit en banc decision last summer, which found that the USF contribution factor is a "misbegotten tax.” Justices heard oral argument in that case in March (see 2503260061).
The leaders of the House and Senate Communications subcommittees said Thursday they're reviving the bicameral USF revamp working group, which had paused its work on legislative recommendations last year amid uncertainty following the 5th U.S. Circuit Court of Appeals’ ruling in the Consumers' Research lawsuit against the program’s funding mechanism (see 2407300053). The Supreme Court heard oral arguments for its review of the case in March (see 2503260061). Working group members had considered melding the FCC’s lapsed affordable connectivity program with USF’s Lifeline program and keeping the latter’s narrower eligibility rules (see 2404170066).
Competitive Carriers Association CEO Tim Donovan said he remains worried about what the U.S. Supreme Court will decide on the USF's constitutionality, though he also expressed optimism that the program will survive the Consumers' Research challenge (see 2504140039). Donovan spoke during a Free State Foundation webcast this week, hosted by former FCC Commissioner Mike O’Rielly.
A decision by the U.S. Supreme Court is expected in a matter of weeks in the Consumers' Research case challenging the USF contribution factor and the USF generally, even as SCOTUS wades through numerous emergency petitions from the Trump administration, industry experts said Wednesday during a Broadband Breakfast webinar. USF likely needs an overhaul, they added, but that could be difficult if the FCC loses at SCOTUS, which typically issues several high-profile decisions in June.
Making cloud services pay into the USF would increase the price of the services, drive down adoption and negatively affect the economy, according to a new study from the Computer & Communications Industry Association. The study was written by Raul Katz, director-business strategy research at the Columbia Institute for Tele-Information at Columbia Business School and funded by Amazon Web Services. Ruiz discussed the results Tuesday on a webcast with Trevor Wagener, CCIA's research center director and chief economist.
Industry attorneys expect USF reform and think BEAD efforts will soon speed up, they said in a webinar Thursday hosted by Incompas CEO Chip Pickering. The panel also discussed convergence between wired and wireless broadband and the movement of power away from the FCC in the wake of recent U.S. Supreme Court rulings against agency authority. “From Incompas’ perspective ... we think a lot will shift to Congress, to the administration and to the states,” said Pickering.
Two top Senate Commerce Committee Democrats are voicing concerns that speculation that President Donald Trump may move to fire FCC Commissioner Anna Gomez (see 2503200057) will scare off potential Democratic candidates to replace retiring Commissioner Geoffrey Starks. Democratic FCC stakeholders began worrying about Gomez’s fate after Trump’s unprecedented March firings of Democratic FTC Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter (see 2503190057). Legal experts said during a Broadband Breakfast webinar Wednesday that the U.S. Supreme Court appears likely to overturn Humphrey’s Executor v. U.S., a 1935 decision stopping the president from firing FTC commissioners without cause, which has implications for the FCC and other independent agencies.
The USF's future is one of the biggest issues for Competitive Carriers Association members, CEO and President Tim Donovan said in an interview. The organization is “cautiously optimistic” following U.S. Supreme Court arguments in the Consumers' Research case (see 2503260061), he said.
Some Senate Commerce Committee Democrats gave Republican FCC nominee Olivia Trusty a more positive reception during her Wednesday confirmation hearing than observers were expecting, though they used questions to hammer Chairman Brendan Carr’s actions since taking the gavel Jan. 20 and voice concerns about the agency's loss of independence during the Trump administration (see 2504080066). Panel Democrats delivered a harsher verdict to NTIA administrator nominee Arielle Roth, who advanced Wednesday on a nearly party-line vote of 16-12, as expected (see 2504080059). Sen. John Fetterman of Pennsylvania was the only Democrat to buck his party's opposition (see 2504090037).