The Supreme Court has agreed to take up a case that addresses Congress’ authority to delegate power to federal agencies, continuing a longstanding effort by conservatives and business groups to limit federal government influence.
This appeal, submitted by the Biden administration, follows a major decision earlier this year in which the Court curtailed the ability of federal agencies to interpret unclear laws regarding workplace safety, environmental policies, and consumer protections.
Biden administration appeals to the Supreme Court over controversial FCC funding model
The current case focuses on the funding structure for the Universal Service Fund, a multibillion-dollar program overseen by the Federal Communications Commission to provide discounted phone and internet services to underserved groups such as rural schools and low-income families. The implications of the ruling, anticipated by June, could extend beyond this specific program to Congressional delegations of power across multiple agencies.
Two appeals related to this issue were accepted by the Court—one from the Biden administration and another from a coalition of schools and libraries that rely on the program. The justices also raised a procedural question, asking the parties to address whether the case has become moot based on developments in lower courts.
The Universal Service Fund was established by Congress in 1996, requiring telecommunications companies to contribute. These costs are typically passed on to consumers. Critics argue that this funding model resembles an unconstitutional tax delegation to the FCC and question the legality of the FCC allowing a private entity to manage the fund.
This case represents another chapter in efforts to redefine the balance of power between Congress and the executive branch. A decision is expected to come months into Donald Trump’s second term as president.
Several nonprofit groups challenged the FCC’s funding framework, seeing mixed results in various federal courts. While the 6th and 11th Circuits upheld the FCC’s actions, the 5th Circuit ruled against the government, prompting the Biden administration’s appeal to the Supreme Court.
The nondelegation doctrine, last invoked in the 1930s, is central to this case. Although Congress has been allowed to delegate authority under specific conditions, critics—particularly conservative groups—argue that such permissiveness undermines the separation of powers by granting excessive discretion to unelected federal agencies.
Earlier this year, the Court issued rulings that chipped away at the authority of the “administrative state.” One such decision overturned a precedent requiring courts to defer to agencies’ interpretations of ambiguous laws, paving the way for challenges to other federal regulations. This latest case could further shift the legal landscape surrounding federal agency powers.
