Attorney General Kwame Raoul has joined a bipartisan effort urging the U.S. Supreme Court to maintain the Universal Service Fund (USF). The USF was established by Congress in 1996 to promote nationwide communications services, including internet and phone service, to rural communities, schools, and low-income users. Raoul and officials from other states argue that the USF has been critical in realizing the benefits envisioned by Congress.
They urge the Supreme Court not to declare the federal law establishing the USF unconstitutional. “Access to internet and phone services is crucial for the economic security and well-being of rural communities in Illinois,” Raoul stated. The plaintiffs in this case argue that the federal statute establishing the USF gives too much power to the Federal Communications Commission (FCC).
While courts have consistently rejected such claims, the U.S. Court of Appeals for the 5th Circuit recently ruled that the statute is unconstitutional. Raoul and his coalition note that the administration of the fund has been cost-effective for program participants and has helped bring rural areas the same telephone, internet, education, and health benefits available in urban areas. Illinois consumers in rural areas benefit from the High Cost program, which makes both telephone and internet service available at reasonable rates.
The Lifeline program assists low-income residents by providing low-cost telephone and internet services and supports rural education and healthcare initiatives. Joining Raoul in filing the brief are attorneys general from Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Dakota, Vermont, Wisconsin, and Wyoming. A bipartisan group of nearly 30 lawmakers from both chambers of Congress also urged the Supreme Court to uphold the USF last week.
Raoul supports universal service fund
The $8.1 billion USF supports rural broadband networks and provides internet discounts for low-income households, schools, libraries, and healthcare centers. It has been funded since the 1990s by fees on interstate voice revenue, which are calculated and collected by the Universal Service Administrative Company (USAC), a nonprofit created by the FCC.
After a series of unsuccessful legal challenges to the fund by conservative nonprofit Consumers’ Research, the Fifth Circuit Court of Appeals broke with other federal courts and ruled the fund unconstitutional in July. The case is now before the Supreme Court following an FCC appeal. Widespread support for the USF was evident as 19 amicus briefs were filed Thursday by a broad array of entities including national telecom industry groups, state governments, rural businesses and community groups, and consumer advocates.
All but one urged justices to reverse the Fifth Circuit ruling. FCC commissioners and USAC leadership were also among the supporters. The commissioners come from both parties and include Mignon Clyburn, Tom Wheeler, and Richard Wiley.
They argued that the agency had interpreted the Communications Act as limiting its ability to fund certain efforts through USF and had exercised close control over USAC. The future of the E-rate program, which helps a majority of U.S. public libraries and schools obtain affordable, high-speed broadband, is also uncertain as the Supreme Court will decide its fate this year. E-rate has enabled libraries to offer essential services to their communities, such as providing Wi-Fi access during storms and serving as remote worker hubs.
The American Library Association has filed an amicus brief with the Supreme Court detailing the vital importance of universal service and the E-rate program for libraries and the communities they serve. Without universal service and E-rate, many libraries would no longer be able to afford high-speed broadband connections and may need to limit their collections and reduce hours.
