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Supreme Court steps into fight over FCC's $8 billion subsidies for internet and phone services

The Supreme Court has stepped into a major legal fight over the $8 billion a year the federal government spends to subsidize phone and internet services in schools, libraries and rural areas, in a new test of federal regulatory power.

WASHINGTON (AP) — The Supreme Court on Friday stepped into a major legal fight over the $8 billion a year the federal government spends to subsidize phone and internet services in schools, libraries and rural areas, in a new test of federal regulatory power. The Federal Communications Commission collects money from telecommunications providers, who then pass the cost on to their customers. The 5th Circuit held that the funding method is unconstitutional because Congress has given too much authority to the FCC and the agency in turn has ceded too much power to a private entity.

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