Sixth Circuit Agrees with Fifth Circuit and Upholds USF Contribution Mechanism

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The Sixth Circuit U.S. Court of Appeals has rejected a challenge to the FCC’s Universal Service Fund stating that Congress provided the FCC with an intelligence principle that offers nuanced guidance and discretion to the FCC and thus the nondelegation doctrine was not violated in raising contributions from telecommunications service providers via the USF.  The Sixth Circuit added that the FCC’s delegation of duties to USAC does not violate the private nondelegation doctrine given USAC’s subordination to the FCC.

The Fifth Circuit rejected a similar challenge to the USF in March and a third similar case remains pending in the Eleventh Circuit.

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