US appeals court invalidates $9B telecom subsidy fund

Judge Edith Brown Clement: Judge Edith Brown Clement serves on the U.S. Court of Appeals for the Fifth Circuit. She authored the October 2026 panel opinion holding that the FCC violated the Government Corporation Control Act by creating the Universal Service Administrative Company without specific congressional authorization. Federal Communications Commission: The Federal Communications Commission is an independent U.S. federal agency established in 1934 to regulate interstate and international communications. It oversees programs like the Universal Service Fund to support access in underserved areas. In the recent case, the agency is responding to a Fifth Circuit ruling that it lacked authority to establish the fund's private administrator under a 1945 federal law. Legal Review: The FCC is considering all options available following the appeals court decision on its Universal Service Fund structure. Reform Efforts: Bipartisan congressional working groups have been meeting regularly to advance legislation modernizing the Universal Service Fund's contribution mechanisms.