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John Eggerton

Second Court Upholds FCC’s Broadband Subsidy Delegation

A closeup of U.S. money

A second U.S. Appeals Court has concluded the Federal Communications Commission is on sound constitutional footing when it comes to delegating oversight of the billions of dollars in government advanced telecommunications subsidy money it hands out annually with a big assist from the Universal Service  Administrative Co. (USAC).

The 6th U.S. Circuit Court of Appeals, in a unanimous decision handed down Thursday (May 4), said, “USAC’s role in handling the administrative functions of billing the contributing carriers and disbursing the universal-service funds, is permissible ministerial support and, further, reflects its subordination to the FCC.”

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