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.

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).

Former FCC Commissioner Mike O’Rielly said Wednesday that while he has long been a critic of the USF, he was relieved that the U.S. Supreme Court last week didn’t overturn the program (see 2506270054). Cutting off support that USF recipients need would be “a terrible outcome,” O’Rielly said during a Broadband Breakfast webinar.

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.

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).

Two Texas associations this week petitioned the 5th Circuit U.S. Court of Appeals asking it to overturn a January declaratory ruling by the FCC in response to the Salt Typhoon cyberattacks. CTIA, NCTA and USTelecom previously asked the FCC to reconsider the ruling (see 2502190081), which now-Chairman Brendan Carr had opposed (see 2501160041). Commissioners approved it 3-2 in the final days of the Biden administration.

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.

The Competitive Carriers Association supported petitions for reconsideration of the FCC’s August order launching a 5G Fund filed by the Coalition of Rural Wireless Carriers (CWRC) and the Rural Wireless Association (see 2501140056). CCA agrees that “several aspects” of the order “require prompt reconsideration,” said a filing posted Friday in docket 20-32.

Consumers’ Research has filed another challenge to the legality of the FCC’s USF contribution factor, this time for Q2 of this year, at the 5th U.S. Circuit Court of Appeals. The group chose what's likely the friendliest circuit for an appeal; the U.S. Supreme Court is currently considering 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 arguments in that case last week (see 2503260061).

Consumers' Research Executive Director Will Hild expressed confidence after the U.S. Supreme Court heard the group’s challenge of the USF contribution factor in lengthy oral arguments Wednesday (see 2503260061).