The U.S. Fifth Circuit just threatened how rural and low-income Americans and schools stay connected to the world. Credit: Stanisic Vladimir/Adobe Stock Deeply Divided Court: Judges Disagree on Telecom Subsidies in FCC Case
In Consumers' Research v. FCC, plaintiffs argue Congress violated the U.S. Constitution by allowing the FCC to subdelegate the collection of funds to a private company.
July 25, 2024 at 03:22 PM
5 minute read
Telecommunications
The original version of this story was published on Texas Lawyer
What You Need to Know
- A 1996 federal law providing subsidies for schools and rural, low-income, and medically isolated phone and internet users was stricken by the U.S. Fifth Circuit.
- Congress, in a friend of the court brief, warned the court overturning the law would be devastating.
- Seven judges on the en banc court dissented, noting three other circuits held the law constitutional.
Despite being warned by a bipartisan congressional group of allegedly devastating consequences, a majority of circuit judges in New Orleans ruled the telecommunications subsidies for schools, low-income and rural users is unconstitutional.
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