The Supreme Court ruling that helps keep internet affordable in Pennsylvania, explained

Technical.ly

2 days ago

A federal fund dedicated to providing affordable phone and internet services will continue as planned after last week's Supreme Court decision.
The Supreme Court denied Consumers' Research's challenge to the Federal Communications Commission's Universal Service Fund, allowing the program to continue providing subsidized phone, internet and other communications services to underserved communities nationwide, including in Pennsylvania.
The $8 billion Universal Service Fund provides money to subsidize affordable phone and internet programs. As these types of programs continue to get cut, this is a win for the over 300,000 households across Pennsylvania that don't have adequate access to the internet.
'Congress … struck a balance in establishing universal service's metes and bounds — affording the FCC latitude to adapt to technological developments, but insisting that the FCC always look to whether services are essential, affordable and widely used,' Justice Elena Kagan wrote in the court's majority opinion.
The Federal Communications Commission (FCC) and the Universal Service Administrative Company (USAC) did not respond to a request for comment from Technical.ly.
While the Universal Service Fund supports multiple programs, the most direct benefit for consumers is the Lifeline program. Lifeline offers a monthly benefit of up to $9.25 toward phone and internet bills for people whose income is at or below 135% of the federal poverty guidelines or who already qualify for programs like SNAP or Medicaid.
Most service providers in the United States are required to contribute to the Universal Service Fund, although there are some exceptions, such as government entities and some nonprofit organizations. Consumers can apply for the program and then sign up for telecommunications services through participating providers.
This fund is separate from the Pennsylvania Universal Service Fund, which is run by the Pennsylvania Public Utility Commission and reduces charges for long-distance calls.
PA's ups and downs in securing digital equity funding
The commonwealth's lack of internet access, especially in rural parts of the state, has been in the spotlight while the Pennsylvania Broadband Development Authority prepares for an influx of funding to build new broadband infrastructure.
The commonwealth is set to receive $1.16 billion through the Broadband, Equity, Access and Deployment program. This money will build broadband infrastructure in unserved and underserved parts of the state.
But digital equity initiatives have been under fire recently. The Affordable Connectivity Program (ACP), an internet subsidy program, ran out of funding last year, leaving 763,000 households in Pennsylvania with higher internet bills. At the time, Senator John Fetterman introduced a bill that would make the ACP part of an existing program, but there has been no movement on the legislation since then.
Earlier this year, the federal government halted funding allocated under the Digital Equity Act, which was going to provide $25 million to Pennsylvania for digital literacy programs, device distribution and internet subsidies, among other initiatives.
Benefits for schools, libraries and healthcare
The idea of universal service comes from the Communications Act of 1934, which states that all Americans should have access to communications services. Congress delegated operations of the Universal Service Fund to the FCC, which then created the USAC.
This not-for-profit organization manages the daily operations of the fund and determines how much of its projected revenue service providers must contribute toward it. The money ultimately comes from fees on consumers' phone and internet bills.
Consumers' Research, a conservative non-profit organization, challenged the USF at the end of 2021, arguing that this funding method was unconstitutional. The case went to the US Court of Appeals for the Fifth Circuit before landing at the Supreme Court.
The Telecommunications Act of 1996 requires telecommunications companies that provide interstate service to contribute quarterly to the Universal Service Fund. This money supports the Lifeline program and three other main programs for phone and internet services:
The E-Rate program distributes funding for broadband services in schools and libraries.
The Rural Healthcare program provides discounts on voice, data and broadband services to rural healthcare providers.
The High Cost program encompasses multiple funds that support telecommunications carriers in building broadband or voice infrastructure in unserved or underserved areas. The program ultimately helps keep service costs down for residents in those communities.
As part of the Supreme Court's majority opinion, those programs have been deemed a success.
'The proof is in the pudding: Each of the four programs the FCC now operates under Section 254 reflects Congress's choices about universal service's scope and content,' Kagan wrote. 'Not one of those important but decidedly ordinary programs suggests an agency vested with unbridled discretion.'