Supreme Court takes up $8B phone and internet subsidy for rural areas
Published on: 2025-05-29 06:24:28
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WASHINGTON (AP) — The Supreme Court on Wednesday seemed likely to preserve the $8 billion a year the government spends to subsidize phone and internet services in schools, libraries and rural areas.
The justices heard nearly three hours of arguments in a new test of federal regulatory power, reviewing an appellate ruling that struck down as unconstitutional the Universal Service Fund, the tax that has been added to phone bills for nearly 30 years.
Liberal and conservative justices alike said they were concerned about the potentially devastating consequences of eliminating the fund that has benefited tens of millions of Americans.
The Federal Communications Commission collects the money from telecommunications providers, which pass the cost on to their customers.
A conservative advocacy group, Consumer Research, challenged the practice. The justices had previously denied two appeals from Consumer Research after
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