Insights

The U.S. Supreme Court has upheld the Universal Service Fund (USF), preserving critical funding that supports broadband connectivity for healthcare providers, schools, libraries, and underserved communities. The ruling in FCC v. Consumers’ Research secures the future of programs like the Healthcare Connect Fund (HCF), which subsidizes broadband and network costs for healthcare organizations nationwide.

Here’s what this ruling means and how advocacy efforts helped protect this essential funding source.

What is the Universal Service Fund?

Established in 1996, the Universal Service Fund (USF) is a federal program managed by the Universal Service Administrative Company (USAC) under the oversight of the Federal Communications Commission (FCC). Its goal is to ensure affordable and equitable access to telecommunications services across the country.

The USF supports four key programs:

• E-Rate: Expands connectivity for schools and libraries
• Rural Health Care (including the Healthcare Connect Fund): Provides subsidies for broadband and telecommunications expenses for healthcare organizations
• Lifeline: Offers discounts on phone and internet services for low-income households
• High Cost: Ensures broadband access in rural and remote areas with higher connectivity costs

Why Was the USF Challenged in Court?

In FCC v. Consumers’ Research, the 5th Circuit Court ruled that the Universal Service Fund (USF) was unconstitutional, raising concerns about the program’s future. The court found that Congress had not provided enough guidance to the Federal Communications Commission (FCC) on how to administer the USF and that the FCC had improperly delegated its responsibilities to the Universal Service Administrative Company (USAC), a private nonprofit that manages the program.

This decision conflicted with rulings from two other circuit courts that upheld the program’s constitutionality, finding that the FCC maintained sufficient oversight over USAC. As a result, the case was sent to the U.S. Supreme Court for final review.

What Did the Supreme Court Decide?

On June 27, 2025, the Supreme Court reversed the 5th Circuit decision, upholding the constitutionality of the Universal Service Fund (USF) and ensuring that critical subsidies remain available to support connectivity nationwide.

This decision is a relief for healthcare providers relying on USF programs, like the Healthcare Connect Fund, to maintain affordable broadband networks that enable telehealth, data sharing, and connected care.

NETC’s Role in Protecting Broadband Funding

At NETC, we’ve been actively engaged in advocacy to defend the Universal Service Fund (USF) and protect broadband subsidies that enable healthcare delivery. Over the past year, our team has:

• Submitted an Amicus Brief to the U.S. Supreme Court in defense of the USF and its programs.
• Participated in the Keep America Connected Coalition, joining other key stakeholders to protect broadband funding for healthcare, education, and underserved communities.
• Maintained active membership in national advocacy groups, including the Schools, Health & Libraries Broadband (SHLB) Coalition.
• Formed an ad-hoc coalition of healthcare stakeholders to amplify the voice of providers in this effort.
• Held over 50 meetings with Congressional offices and policymakers this year alone, educating leaders on the importance of broadband subsidies for healthcare delivery.

“This decision by the Supreme Court protects the connectivity healthcare providers depend on,” said Jeff Rogers, Vice President of Finance & Operations of ProInfoNet, NETC’s managing agent. “We’re proud to stand alongside our partners nationwide in advocating for the funding that enables better care.”

Looking Ahead

At NETC, we remain committed to advocating for the support that healthcare providers need to deliver reliable, connected patient care. As the landscape for broadband policy continues to evolve, we will keep you informed every step of the way.

Want to learn more about our advocacy efforts or how we support healthcare organizations nationwide? Reach out to us today at info@netelc.org.