Federal Lawsuits Allege FCC Phone Surcharge Unconstitutional

Dating back to 1934, Americans have paid into a fund that began as a mechanism for providing every household with telephone service and evolved into the federal initiative for universal internet access. Cell and landline phone customers still contribute to the Federal Communications Commission Universal Services Fund (USF), which is passed onto them by service providers in the form of a monthly surcharge, even though Congress never approved the tax. With that coffer running short of cash—along with the exhaustion of the FCC’s Affordable Connectivity Program for low-income households this month—litigation challenging the fund’s legitimacy could ultimately require lawmakers to end internet subsidies or find a different way to pay for them....