Supreme Court hears FCC case that could weaken power of federal agencies

A case about a Federal Communications Commission program that subsidizes telecommunications in underserved areas raises big legal questions for other agencies.
WASHINGTON — The latest attempt by conservatives to undermine the federal bureaucracy reaches the Supreme Court on Wednesday as the justices consider whether the Federal Communications Commission unlawfully wields power via a program that subsidizes telecommunications services in underserved regions.
The court has a 6-3 conservative majority that has in a series of recent decisions undercut the authority of government agencies and advanced a deregulatory agenda largely favored by business interests and Republicans.
The case concerns whether Congress in a 1996 law exceeded its authority in setting up the Universal Service Fund, which requires telecommunications services to submit payments to subsidize “universal service” in low-income and rural areas.
The fees, which are passed on to customers, raise billions of dollars a year that are spent on providing phone and internet services, including for schools, libraries and hospitals.
A second, connected legal question is whether the FCC could delegate its own authority to a private corporation it set up called the Universal Service Administrative Company to administer the fund.
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