Federal Communications Commission v. Consumers’ Research

Supreme Court Upholds E-Rate Funding Program

In a 6-3 decision, the U.S. Supreme Court upheld the FCC’s E-rate program, which supports internet access for schools and millions of students across the country.  Consumers’ Research, an advocacy group, challenged the constitutionality of the funding mechanism for the E-rate program. The group claimed, in part, that Congress had improperly delegated its taxing power because the FCC uses a private entity, the Universal Service Administrative Co., to recommend contribution rates and collect fees that fund the program. The Court found that the FCC was properly exercising its authority to implement the E-rate law, which directs the FCC to collect contributions that are “sufficient” to support the program.