Federal Communications Commission v. Consumers’ Research
Issues
Did Congress violate the nondelegation clause when it authorized the Federal Communications Commission (“FCC”) to regulate revenue for the Universal Service Fund, which exists to subsidize access to telecommunications; and, did the FCC unconstitutionally delegate authority to a private entity in the implementation of the Universal Service Fund?
This case asks the Court to determine if Congress’ delegation of authority to the FCC under 47 U.S.C. § 254 was unconstitutional, and whether the FCC’s delegation to a private entity to implement some § 254 provisions was unconstitutional. The FCC argues that the delegation was not unconstitutional because Congress gave the FCC an “intelligible principle” with which to execute the statute. The FCC further contends that it only used a private entity for advice and maintained ultimate authority when it came to the implementation of the statute. Consumers’ Research argues that the statute only announces vague aspirational policy goals and gives too much legislative power to the FCC. Additionally, Consumers’ Research posits that the private entity’s involvement in the implementation of the statute went beyond advice and amounted to private creation of federal law. This case involves questions regarding the separation of powers and how much leeway agencies have in implementing policy.
Questions as Framed for the Court by the Parties
(1) Whether Congress violated the nondelegation doctrine by authorizing the Federal Communications Commission to determine, within the limits set forth in 47 U.S.C. § 254, the amount that providers must contribute to the Universal Service Fund; (2) whether the FCC violated the nondelegation doctrine by using the financial projections of the private company appointed as the fund's administrator in computing universal service contribution rates; (3) whether the combination of Congress’s conferral of authority on the FCC and the FCC’s delegation of administrative responsibilities to the administrator violates the nondelegation doctrine; and (4) whether this case is moot in light of the challengers' failure to seek preliminary relief before the 5th Circuit.
It has been a longstanding congressional policy to ensure that all Americans have access to telecommunications services. Consumers’ Research v. FCC at 2. For many years, Congress achieved this policy by allowing AT&T, which once held a regulated monopoly over the telecommunications industry, to charge urban customers high rates.
Additional Resources
- Anna Merod, Why E-rate’s future is now in the hands of the Supreme Court, K-12 Dive (Nov. 28, 2024).
- Seamus Dowdall and Emma Conover, Courts ponder the constitutionality of the Universal Service Fund, National Association of Counties (Oct. 2, 2024).
- Masha Abarinova, Policy expert Blair Levin: We need to look beyond the rural access divide, Fierce Network (Mar 6, 2025).