In a June 27, 2025 decision, the U.S. Supreme Court (SCOTUS) preserved E-rate’s funding mechanism in a 6-3 opinion. The decision preserved the multibillion-dollar federal internet discount program for schools and libraries and means schools can continue to apply for the program’s funding.
The ruling in FCC v. Consumers’ Research keeps in place the Universal Service Administrative Co. (USAC), the private nonprofit company created by the Federal Communications Commission to administer the program. The supermajority of justices deemed it constitutional for the company to continue assisting in “projecting revenues and expenses, so that carriers pay the needed amount.”
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