AAF General Counsel Marc Wheat said:
“Today, the Supreme Court, on a 6-3 vote, upheld Congress’s delegation of taxing power to the Universal Service Administrative Company (USAC). In Federal Communications Commission (FCC) v. Consumers’ Research, Consumers’ Research challenged the taxing power to the Universal Service Administrative Company (USAC), an organization created by the FCC to collect and distribute funds for the Universal Service Fund. The Court’s decision allows for the continuation of a program that, while likely beneficial, conservative constitutionalists believe is beyond the scope of Congress to create.”
“AAF agrees with the analysis of the Gorsuch dissent (joined by conservatives Thomas and Alito), that the Court departs from time-honored rules such that when it comes to “universal service” taxes, the majority concludes, an executive agency may decide for itself what rates to apply and how much to collect. In upholding that arrangement, the Court defies the Constitution’s command that Congress “may not transfer to another branch ‘powers which are strictly and exclusively legislative.’” Gundy v. United States, 588 U. S. 128, 135 (2019) (plurality opinion) (quoting Wayman v. Southard, 10 Wheat. 1, 42–43 (1825)).”
