The US Supreme Court will hear appeals of a 5th Circuit ruling that called Universal Service fees on phone bills an illegal tax.
The US Court of Appeals for the 5th Circuit ruled in July that the Federal Communications Commission’s Universal Service Fund is unconstitutional and that the fees on phone bills are a “misbegotten tax.” The FCC and several non-government groups challenged the ruling, and the Supreme Court agreed to take up the case on Friday.
The Universal Service Fund is an $8 billion-a-year system that subsidizes the expansion of telecom networks with grants to Internet service providers and makes access more affordable through programs such as Lifeline discounts. The FCC program has faced several court challenges filed by Consumers’ Research, a nonprofit that fights “woke corporations,” and a mobile virtual network operator called Cause Based Commerce.