The Supreme Court is poised to hear a case that could further limit the power of federal agencies by reviewing a dispute over a Federal Communications Commission (FCC) program that requires companies to subsidize telecommunications services in underserved areas.
The case represents another opportunity for business interests to challenge regulatory power at a court dominated by a 6-3 conservative majority. The central issue is whether Congress granted excessive authority to the FCC to determine the subsidy amounts, which currently reach billions of dollars.
The court could invoke the “nondelegation doctrine,” a legal principle that restricts Congress’s ability to delegate broad authority to agencies, potentially affecting how the federal government regulates various sectors, including banking and the environment.
The FCC is seeking Supreme Court review after the 5th U.S. Circuit Court of Appeals ruled against the agency. The case stems from a 1996 law that established the Universal Service Fund, which requires telecommunications companies to contribute to subsidize “universal service” in low-income and rural areas.
The FCC created a private entity, the Universal Service Administrative Company, to manage the fund. The case also raises questions about whether Congress exceeded its constitutional powers and whether the FCC improperly delegated its authority to set payment amounts to a private company.
The court’s decision could have significant implications, potentially limiting executive branch powers and affecting future regulatory actions, including those of President Donald Trump, who has indicated plans to use executive power aggressively in his second term.
Peoplesmind
