Supreme Court upholds phone and internet subsidy program for underserved areas

The Supreme Court rejected a challenge to a Federal Communications Commission program that subsidizes phone and internet services in underserved parts of the country.

WASHINGTON — The Supreme Court on Friday rejected a challenge to a Federal Communications Commission program that subsidizes phone and internet services in underserved parts of the country.

In a decision written by Justice Elena Kagan, the court ruled that Congress did not exceed its authority when it enacted a 1996 law that set up the Universal Service Fund, which requires telecommunications services to submit payments to subsidize “universal service.”

The court also said the FCC could delegate its authority to a private corporation called the Universal Service Administrative Company to administer the fund.

"Nothing in these arrangements, either separately or together, violates the Constitution," Kagan wrote.

The justices were divided 6-3, with three conservative justices dissenting.