Consumers Research Leads Another Appeal of USF Mechanism

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Consumers’ Research, Cause Based Commerce, Inc., and 16 individuals have petitioned the U.S. Court of Appeals for the Fifth Circuit to review the FCC’s recent approval of the Universal Service Fund contribution factor for Q4 of 2025.  The petition follows a recent Supreme Court decision rejecting a broader constitutional challenge to the USF mechanism.  The petitioners argue that no court has addressed the validity of this particular USF contribution factor approval, and that the approval exceeds the agency’s statutory authority and violates constitutional principles, including the nondelegation doctrine.  The petitioners also challenge the role of the Universal Service Administrative Company, alleging that it unlawfully exercises executive powers and violates federal laws such as the Government Corporation Control Act.  The petition seeks to vacate the FCC’s approval, halt implementation, and obtain refunds of legal fees.

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