A Supreme Court case set for argument on Wednesday could have far-reaching consequences for schools, libraries, and hospitals across the United States that rely on federal funding for internet access. The case challenges the legality of the $7 billion Universal Service Fund (USF), a program established by Congress in 1996 to subsidize telecommunications services for low-income communities.
Libraries such as the Bullitt County Public Library in Kentucky depend on these funds to provide high-speed internet to students and residents. When severe flooding shut down schools in the area last month, students flocked to the library to access online learning resources. However, a conservative advocacy group is now questioning the constitutionality of the USF, arguing that it imposes an indirect tax on consumers without congressional approval.
Legal Challenge to Internet Funding
The lawsuit, FCC v. Consumers’ Research, asserts that the Federal Communications Commission (FCC), which oversees the USF, lacks the authority to require telecommunications companies to contribute to the fund. Opponents argue that this violates the nondelegation doctrine, which prohibits Congress from transferring its legislative powers to federal agencies or private entities. The fund’s administration by a third-party organization further complicates the issue, with critics calling it a “bureaucrat’s dream” and a “nightmare for the Constitution.”
Attorney Trent McCotter, representing the challengers, argues that funding internet access through annual congressional appropriations would be a more transparent and constitutional approach. “The Universal Service Fund is facing a widely recognized death spiral of ever-higher rates with dwindling returns,” McCotter said. “It will soon implode if left unchecked.”
Potential Impact on Schools and Libraries
Education and community leaders warn that eliminating the USF could be devastating, particularly for rural and low-income areas. The E-Rate program, which helps schools and libraries afford broadband access, provided $3.26 billion in funding in 2024 alone. More than 106,000 schools have benefited in the past two years, often using the funds to maintain security systems and other critical infrastructure in addition to internet access.
Chase Christensen, superintendent of the Sheridan County School District #3 in Wyoming, emphasized the importance of these subsidies. “Without this support, we would have to divert funds away from classrooms just to keep our schools connected,” he said.
A Broader Battle Over Federal Authority
The Supreme Court’s conservative majority has recently curtailed the power of federal agencies, ruling in favor of stricter congressional oversight in cases involving environmental regulations, student loan forgiveness, and COVID-19 restrictions. A ruling against the FCC in this case could significantly limit federal agencies’ ability to manage complex regulatory programs without explicit legislative authorization.
Advocates fear that if the USF is struck down, Congress may struggle to find alternative funding, as demonstrated by last year’s lapse in funding for the Affordable Connectivity Program, which provided similar subsidies.
With a ruling expected by the end of June, millions of Americans, especially those in underserved communities, face uncertainty over their continued access to affordable internet services.
