The U.S. Supreme Court issued a unanimous but narrow opinion Friday that reimbursement requests submitted to the E-rate program, administered by the Universal Service Administrative Co., can be considered “claims” under the False Claims Act (FCA). The decision in Wisconsin Bell v. U.S. reaffirmed the ruling of the 7th Circuit Court of Appeals. Elena Kagan, one of three justices appointed by a Democratic president, wrote the opinion.
WTA members are concerned about the uncertainty stemming from the U.S. Supreme Court review of FCC v. Consumers' Research, a case that could invalidate how the USF program is funded (see 2501090045), as well as the future of the enhanced alternative connect America cost model program, representatives from the group said in a meeting with aides to FCC Chairman Brendan Carr. WTA members also “raised the need for addressing both USF contribution and distribution reform,” said a filing posted Wednesday in docket 10-90. “The current contribution factor is above 36% and is unsustainable, and therefore the Commission should look to assess [broadband internet access service] providers and work with Congress to have edge providers and others who should be contributing to USF do so in order to bring the contribution factor down and be spread equitably among all users.” The WTA members also reported on meetings with aides to Commissioners Nathan Simington and Anna Gomez.
The National Federation of Independent Business’ Small Business Legal Center joined Consumers’ Research in asking the U.S. Supreme Court to reject how the FCC handles USF. FCC v. Consumers' Research, which SCOTUS will hear March 26, challenges the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating how the USF program is funded (see 2501090045).
Communications Daily is tracking the lawsuits below involving appeals of FCC actions.
Consumers’ Research is getting support from other right-of-center groups as it pushes a legal theory at the U.S. Supreme Court that poses a challenge to the USF's future. SCOTUS will hear FCC v. Consumers' Research on March 26, challenging the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating how the USF program is funded (see 2501090045).
Consumers’ Research, the conservative group that is a self-described opponent of “woke” culture, told the U.S. Supreme Court that the way the FCC assesses payments for the USF is “a historic anomaly at odds with 600 years of Anglo-American practice.” SCOTUS will hear FCC v. Consumers' Research March 26, challenging the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program (see 2501090045), in part because the FCC delegated authority for overseeing the program to the Universal Service Administrative Co.
Acting U.S. Solicitor General Sarah Harris told Senate Judiciary Committee ranking member Dick Durbin, D-Ill., on Wednesday that DOJ plans to stop defending tenure protections that bar a president from firing a commissioner from an independent agency at will, including FTC commissioners. Harris said she plans to ask the U.S. Supreme Court to overturn that precedent, established in its 1935 Humphrey’s Executor v. U.S. ruling, a shift that would also affect the FCC. DOJ “has determined that certain for-cause removal provisions that apply to members of multi-member regulatory commissions are unconstitutional,” Harris said in a letter to Durbin. The high court has held that Humphrey’s Executor “applies only to administrative bodies that do not exercise ‘substantial executive power’” and has explained it “misapprehended the powers of the ‘New Deal-era FTC’ and misclassified those powers as primarily legislative and judicial.” She said the precedent “thus does not fit the principal officers who head” the FTC and two other agencies: the National Labor Relations Board and Consumer Product Safety Commission. The U.S. Chamber of Commerce and other conservative groups asked SCOTUS in July to overturn Humphrey’s Executor in Consumers' Research et al. v. Consumer Product Safety Commission (see 2407290027).
Communications Daily is tracking the lawsuits below involving appeals of FCC actions. New lawsuits since the last update are marked with an *.
Three conservative groups on Tuesday urged the U.S. Supreme Court to use its upcoming decision in FCC v. Consumers' Research to provide clarity on when agencies can delegate authority to private companies. SCOTUS will consider the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program (see 2501090045), in part because the FCC delegated authority for overseeing the program to the Universal Service Administrative Co. (see 2412100060).
The U.S. Supreme Court on Monday scheduled oral argument for March 26 in the government’s challenge of the 5th U.S. Circuit Court of Appeals' 9-7 en banc decision last year that sided with Consumers' Research and found that the USF contribution factor is a "misbegotten tax.” SCOTUS agreed in November to hear what some see as the most consequential FCC case in years (see 2412100060). Members of Congress, former FCC commissioners, ISPs and public interest groups are among those urging SCOTUS to overturn the 5th Circuit decision.