Industry-Wide Advocacy Effort Underway in Response to Fifth Circuit Decision Jeopardizing the Universal Service Fund

Industry-Wide Advocacy Effort Underway in Response to Fifth Circuit Decision Jeopardizing the Universal Service Fund 

In our July 25, 2024, e-lert, JSI provided our analysis of the En Banc decision by the U.S. Court of Appeals, Fifth Circuit that the Federal Communication’s Commission (FCC) federal universal service surcharge method represents an unlawful mechanism for taxation because it employs an impermissible double delegation to a private entity and is therefore unconstitutional.   

In our analysis, JSI provided possible next steps for the FCC and Congress and urged clients to actively participate in specific advocacy efforts to ensure that vital USF support continues to flow to your company uninterrupted.  These efforts include reaching out to your Congressional delegations during the August district work period when your delegation is home or even remotely when they return to DC after the summer recess to inform them of the need for clarity and stability for these high-cost programs.  If you participated in the USF NOI comments last fall, you can use some of the data and narrative provided to the FCC as talking points for these meetings.  

On Wednesday, NTCA held a webinar in which the association informed participants of actions that the association is taking to support the FCC in appealing the decision to the Supreme Court and advocating for Congress to address the long-standing issue of universal service contribution reform.  One of these actions involves a survey of its members to obtain data that will support the vital importance of universal service to rural America by demonstrating the devasting impact on the small businesses and communities they serve without universal service support.  Another action is making available talking points for members to use when talking to their Congressional delegations and providing to key Congressional leaders with supporting data for any amicus briefs they submit supporting the FCC’s pleadings for an appeal and stay of the decision.    

JSI supports NTCA in this effort and is available to assist you with obtaining financial or other supporting data to respond to NTCA’s survey, accompanying you in meetings on Capitol Hill to discuss potential the impact of this decision on your company and the communities it serves, and working with your Congressional delegation in preparing amicus briefs or letters in support of the FCC’s likely appeal. 

Please contact Steve Meltzer, Jennifer Holtz, John Kuykendall, Douglas Meredith, or your cost consultant for assistance in these areas or if you would like to discuss the implications of the court’s decision.