Supreme Court Steps Into Fight Over FCC’s $8 Billion Subsidies for Internet and Phone Services

STUTTGART, GERMANY – Jun 01, 2021: Person holding cellpohone with seal of American agency Federal Communications Commission (FCC) on screen in front of website. Focus on phone display.

WASHINGTON (AP) — The Supreme Court has stepped into a major legal fight over the $8 billion a year the federal government spends to subsidize phone and internet services in schools, libraries and rural areas, in a new test of federal regulatory power. The justices on Friday agreed to review an appellate ruling that struck down as unconstitutional the Universal Service Fund. The Federal Communications Commission collects money from telecommunications providers, who then pass the cost on to their customers. The Biden administration appealed the lower court ruling, but the case probably won’t be argued until late March. At that point, the Trump administration will be in place and it is not clear whether it will take a different view of the issue.

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