Maurine and Matthew Molak filed a petition Thursday seeking review of a July FCC order that lets schools and libraries use E-rate support for off-premises Wi-Fi hot spots and wireless internet services (see 2407180024), in the 5th U.S. Circuit Court of Appeals. The Molaks previously sought reconsideration of the July order, which three public interest groups and T-Mobile opposed last week (see 2408280029).
The 5th U.S. Circuit Court of Appeals granted the FCC's unopposed motion to stay its ruling in favor of Consumers' Research's USF contributions challenge pending the commission's petition for a writ of certiorari before the U.S. Supreme Court in an order Monday (docket 22-60008). The stay will expire Oct. 1, the order said. The FCC said in its motion that the Solicitor General "recently authorized the filing of a petition," adding that the decision "threatens to disrupt the operation of a multi-billion-dollar subsidy program."
Senate Commerce Committee ranking member Ted Cruz, R-Texas, latched on to a new Government Accountability Office report about the Universal Service Administrative Company’s handling of the Universal Service Fund to criticize the program’s spending and repeat his call for Congress to make USF subject to the federal appropriations process (see 2403060090). Democratic FCC Commissioner Anna Gomez, meanwhile, told us earlier this month that Congress must prioritize a legislative fix for the USF contribution mechanism after the 5th U.S. Circuit Court of Appeals' recent ruling that the current funding factor is unconstitutional (see 2407240043).
The objective of Consumers' Research was getting a case about the Universal Service Fund contribution methodology before the U.S. Supreme Court. That case resulted in the 5th U.S. Circuit Court of Appeals' recent 9-7 en banc decision that found the contribution factor is a "misbegotten tax," legal experts said during a Schools, Health & Libraries Broadband Coalition webinar Wednesday. The 5th Circuit remanded the contribution factor for Q1 2022 to the FCC for further work.
Members of the congressional Universal Service Fund revamp working group are considering whether, and how much, the 5th U.S. Circuit Court of Appeals' ruling will affect their rollout of a framework for overhauling the program. The court ruled last week that the FCC's USF contribution factor is unconstitutional (see 2407240043). Experts believe lawmakers will likely factor the ruling into the framework, but it could be moot should the U.S. Supreme Court reverse the decision on appeal (see 2407260044). Uncertainty about USF’s future will likely extend the working group’s already lengthy process, lobbyists told us.
The 5th U.S. Circuit Court of Appeals' ruling Wednesday against the FCC's Universal Service Fund contribution factor for the first quarter of 2022 will likely have little to no immediate impact on the commission's USF-funded programs and providers contributing to the fund, trade groups and legal experts told us (see 2407240043). It's uncertain how the U.S. Supreme Court would interpret conflicting rulings of the 5th, 6th and 11th circuits. Consumers' Research asked SCOTUS in a supplemental brief filed Thursday (docket 23-456) to grant rehearing as a result of the circuit split.
The 5th U.S. Circuit Court of Appeals in a 9-7 decision sided with Consumers' Research following an en banc rehearing of the group's challenge of the FCC's Universal Service Fund contribution methodology. Calling the contribution factor a "misbegotten tax," the court in a Wednesday ruling in docket 22-60008 held that as a "practical matter," the Universal Service Administrative Co. "sets the USF tax" that's "subject only to FCC's rubber stamp" (see 2406180055). In a statement, Chairwoman Jessica Rosenworcel said the agency will "pursue all available avenues for review."
The FCC asked the 5th U.S. Circuit Court of Appeals to dismiss Consumers' Research's challenge of the agency's USF contributions methodology. Consumers' Research "made the same arguments before the Sixth and Eleventh Circuits," the agency said in a petition filed Monday (docket 22-60008), adding the U.S. Supreme Court declined to review the decisions (see 2406110008). "Those decisions are thus final and not subject to further review," the FCC said, and "petitioners are precluded from raising the same claims here." Also, Consumers' Research filed a motion for the D.C. Circuit for a voluntary dismissal regarding one of its challenges to the USF contribution factor.
The FCC asked the 5th U.S. Circuit Court of Appeals to dismiss Consumers' Research's challenge of the agency's USF contributions methodology. Consumers' Research "made the same arguments before the Sixth and Eleventh Circuits," the agency said in a petition filed Monday (docket 22-60008), adding the U.S. Supreme Court declined to review the decisions (see 2406110008). "Those decisions are thus final and not subject to further review," the FCC said, and "petitioners are precluded from raising the same claims here." Also, Consumers' Research filed a motion for the D.C. Circuit for a voluntary dismissal regarding one of its challenges to the USF contribution factor.
The U.S. Supreme Court denied the Jan. 5 cert petition of Consumers’ Research challenging the FCC's method for determining the USF quarterly contribution factor (see 2401100044), a docket entry Monday said (docket 23-743). The petition asked SCOTUS to review a Dec. 14 decision of the 11th U.S. Circuit Court of Appeals upholding the Q4 2022 contribution factor (see 2312140058).