Appeals judges rule against fund used to provide phone services for rural and low-income people

A federal appeals court in New Orleans has ruled unconstitutional a method the Federal Communications Commission uses to fund telephone and broadband services for rural and low-income users. The immediate implications of Wednesday’s 9-7 ruling by the 5th U.S. Circuit Court of Appeals were unclear. Dissenting judges said the decision conflicts with three other circuit appellate courts elsewhere. At issue is the Universal Service Fund, which the FCC funds through collections from telecommunications providers who then pass the cost on to their customers. Programs funded through the USF provide phone service to low-income users and rural healthcare providers and broadband service to schools and libraries.