In a 6-3 decision, the U.S. Supreme Court has upheld the constitutionality of the Universal Service Fund (USF) and affirmed the Federal Communications Commission’s (FCC) authority to delegate the administration of the USF to the Universal Service Administrative Company (USAC). The Court’s decision reverses a decision of the U.S. Court of Appeals for the Fifth Circuit (Fifth Circuit) which held that the delegation to USAC violated the nondelegation doctrine in Article 1 of the U.S. Constitution. The ruling eliminates uncertainty that has been hanging over the program since the Fifth Circuit’s decision.
