On June 27, 2025, the U.S. Supreme Court issued its decision in Federal Communications Commission v. Consumers’ Research, a closely watched case concerning the constitutionality of the Universal Service Fund (USF) and the FCC’s authority to administer it through contributions from telecommunications providers.
The Court, in a 6-3 vote, upheld the FCC’s authority to collect and distribute USF contributions under its existing statutory framework.
Implications for the E-rate Program
The Court’s decision to uphold the FCC’s authority to administer and collect contributions for the Universal Service Fund (USF) ensures the continued operation of the E-rate program under its current structure. E-rate, which provides critical funding to help schools and libraries afford high-speed broadband and internal network infrastructure, will not face immediate disruption.
Key outcomes:
- Funding Stability: E-rate applicants can expect funding commitments and disbursements to proceed as scheduled for the current and upcoming funding years.
- Policy Momentum: With the legal foundation of the program affirmed, attention may shift to modernizing E-rate to meet evolving technology needs, including more robust support for cybersecurity and Wi-Fi infrastructure.
- Renewed Confidence: The decision strengthens confidence among service providers and applicants, reducing the legal uncertainty that has loomed over the program for several years.
Justice Elena Kagan writes for the majority, “For nearly three decades, the work of Congress and the Commission in establishing universal-service programs has led to a more fully connected country. And it has done so while leaving fully intact the separation of powers integral to our Constitution.”
Funds For Learning is thrilled that this decision is a clear victory for students across the country, ensuring they can continue to rely on strong, affordable internet access at schools and within libraries, a critical tool for learning, equity, and opportunity in the digital age.
To read the full Supreme Court ruling, click here.
