The Fifth Circuit Court ruled that the FCC cannot use the Universal Service Fund. It is to pay for FCC programs that help provide cheap internet to low-income families.
The Universal Service Fund allows the FCC to use the money for the internet.
Many people believe that when they created the fund, they intended it for phone service. The FCC has now changed it for internet use. Many argue that people shouldn’t have to pay this fee on their phone plans. The FCC now uses it for internet, not phone service.
The court issued the ruling this week. It said, “The Telecommunications Act of 1996 gave Congress the power to tax the FCC.” The FCC then gave the power to a private company. That private corporation relied on for-profit telecoms. They set the ‘universal service’ tax on cell phone bills for all Americans. We hold this misbegotten tax violates Article I, § 1 of the Constitution.”
It is likely that this ruling will send this case to the Supreme Court for a final decision. As that occurs, the phone bill and the FCC-discounted plans will likely stay the same. They will stay the same until a final ruling. But the ruling could take a long time.