Comment on 5th Circuit court upends FCC Universal Service Fund, ruling it an illegal tax

5th Circuit court upends FCC Universal Service Fund, ruling it an illegal tax

Enlarge / FCC Chairwoman Jessica Rosenworcel testifies during a House hearing on March 31, 2022, in Washington, DC. (credit: Getty Images | Kevin Dietsch ) A US appeals court ruled that the Federal Communications Commission's Universal Service Fund is unconstitutional, finding Universal Service fees on phone bills to be a "misbegotten tax." If not overturned, the ruling would upend the $8 billion-a-year system that is used to expand telecom networks and make access more affordable through programs such as Lifeline discounts and deployment grants for Internet service providers. But the FCC program could survive in the end as the case appears ripe for Supreme Court review, with yesterday's ruling creating a circuit split.

 

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