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.
FCC Chairman Brendan Carr's criticism of how the 5G Fund was structured under former Chairwoman Rosenworcel is “legitimate,” New Street’s Blair Levin said in an email (see 2502100056). “Congress asked Rosenworcel to lay out an analysis of the future of USF post-BEAD in order to have the data Congress and the public would need to evaluate what needs to be done now and what should await the implementation of BEAD,” Levin said. “Rosenworcel's efforts did not accomplish that (or anything else) which is unfortunate.” While some parts of the fund could be done now, “others, no doubt, would benefit from knowing how the states' plans affect future deployment efforts,” he said.
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).
Expect big changes to BEAD, with the Donald Trump administration and congressional Republicans rewriting the rules and putting more emphasis on efficient use of funding, tech policy experts said Tuesday at the annual State of the Net conference. Consultant Mike O'Rielly, a former FCC commissioner, said NTIA isn't likely to process any state's final proposals in the near term as it awaits where the administration and Congress take BEAD. States must be flexible and ready to pivot once that new direction becomes clear, he added.
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.
In an FCC filing on its proposed buy of Frontier, Verizon committed to comply with all USF requirements and related rules if regulators approve the deal. Verizon agreed to buy Frontier in a $20 billion all-cash deal announced in September (see 2409050010). “Verizon will, consistent with the continuation of Authorized Parties’ USF-related obligations post-transaction, assume all risks and consequences of noncompliance with program requirements, regardless of whether such noncompliance pre-dates or post-dates the consummation of the transaction, including default recovery of support and potential forfeiture penalties, in all supported areas,” said the filing, posted Friday in docket 24-445. Verizon said it will comply "regardless of any preexisting or reasonably foreseeable conditions that could impact the relevant Authorized Parties’ ability to meet USF-related obligations, including technical, marketplace, and on-the-ground conditions." It filed the commitments at the request of FCC Wireline Bureau staff, Verizon added.
With the Affordable Connectivity Program (ACP) out of the picture, Lifeline's monthly benefits aren't covering the growing broadband affordability gap, the National Lifeline Association said in a letter to FCC Chairman Brendan Carr posted Wednesday (docket 21-450). NaLA said its most recent survey of more than 68,000 consumers found that 40% of respondents reduced their food spending to afford the monthly internet bill, 20% indicated they were unable to work remotely or accept shift work, and nearly 20% said their children were having difficulty completing homework. In addition, 36% reported having discontinued telehealth after ACP ended in 2024, and 70% said they relied on ACP and/or Lifeline benefits to access healthcare services, including telehealth. Lifeline’s $9.25 monthly subsidy “comes nowhere close to making basic retail internet service offerings affordable,” NaLA said, since most prepaid mobile broadband plans with at least 5GB of data and mobile hot spot cost $30 or more, and none offer a free smartphone. NaLA said it pushed for interim funding for a reformed ACP, and it supports long-term funding for a single low-income support program inside the USF.
EchoStar, the Rural Wireless Association (RWA), Communications Workers of America and other parties countered arguments that T-Mobile and UScellular made as the two battled opponents of their proposed deal (see 2501100036). The companies announced in May an agreement where T-Mobile will buy “substantially all” of the smaller carrier’s wireless operations, including some of its spectrum, in a deal valued at about $4.4 billion, including $2 billion in assumed debt (see 2405280047).
If the U.S. Supreme Court uses the FCC USF case as a route for establishing a judicial test about the nondelegation of power, that test should consider the nature of the power being delegated, legal academics say. A Federalist Society panel discussion about the 5th U.S. Circuit Court of Appeals’ 9-7 en banc decision invalidating part of the USF program and subsequent SCOTUS appeal (see 2411220050) saw speakers discussing how courts have looked at Congress' delegation of its powers to other branches or agencies and the high court's available options.
The U.S. District Court for the District of Columbia granted an administrative stay late Tuesday afternoon that temporarily blocked a White House OMB memo, which called for a freeze on most federal grants and loans, from going into effect. The Trump administration memo already faced an array of legal challenges, including a planned lawsuit from a coalition of Democratic attorneys general from New York, California, Illinois, Massachusetts, New Jersey and Rhode Island. Broadband officials and industry advocates raised questions about the memo's constitutionality and the future of certain FCC programs, such as Lifeline. Others warned the freeze could have serious implications for NTIA's BEAD program.