Supreme Court to Review Delegation of Powers to FCC for Universal Service Fund

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ICARO Media Group
Politics
22/11/2024 23h07

**Supreme Court to Address Delegation of Powers to Federal Agencies**

The Supreme Court announced on Friday that it will delve into a significant legal dispute concerning Congress' capacity to delegate authority to federal agencies. This development signifies another step in the long-standing endeavor by conservatives and business interests to curtail the power of the federal government.

The case, brought forth by the Biden administration, follows a major ruling from the Supreme Court earlier this year. That decision restricted the ability of federal agencies to interpret ambiguous federal statutes related to workplace conditions, environmental safeguards, and consumer protections.

Central to the new case is the funding mechanism for the Universal Service Fund, which is managed by the Federal Communications Commission (FCC). This fund offers subsidized phone and internet services to rural schools, low-income families, and other groups. The upcoming decision of the high court, anticipated by June, could have far-reaching implications, potentially affecting the scope of power Congress delegates to various agencies.

The Supreme Court has agreed to hear two related appeals — one from the Biden administration and another from a coalition of schools and libraries potentially impacted by the decision. Additionally, the court has requested that parties involved address whether the case may be moot due to prior proceedings in lower courts.

Enacted by Congress in 1996, the Universal Service Fund mandates contributions from telecommunications companies, with these costs typically passed on to consumers. Critics argue that this arrangement functions like a tax and claim that the legislation oversteps constitutional boundaries by bestowing Congress' taxing powers upon the FCC. Moreover, the appeal challenges the legality of the FCC’s practice of allowing a private entity to manage the fund.

This case adds to a series of initiatives aimed at redistributing power between Congress and the presidency—a trend that has often seen success in recent years. The Supreme Court is expected to make its ruling by June, which will follow the commencement of President-elect Donald Trump’s second term.

The FCC's funding strategy has faced legal challenges from a nonprofit "consumer awareness group" and other entities in multiple federal courts. While these challengers faced setbacks in the Cincinnati-based 6th Circuit and the Atlanta-based 11th Circuit, they secured a victory in the New Orleans-based 5th Circuit. The 5th Circuit's ruling against the government spurred the Biden administration to escalate the matter to the Supreme Court after it initially declined to review the issue.

Historically, the Supreme Court last invoked the "nondelegation doctrine" in the 1930s but has allowed Congress to delegate authority under specific conditions since then. Conservative groups have contended that this leniency undermines the separation-of-powers doctrine, enabling government agencies to make critical decisions that they argue should be reserved for elected officials.

Earlier this year, the Supreme Court decided on several pivotal cases challenging the power of what opponents term the "administrative state." One notable ruling overturned a precedent that required lower courts to defer to federal agencies when interpreting vague laws, sparking a surge of challenges to other federal regulations.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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