SHLB Coalition and Partners File Brief Defending Universal Service Fund in the Fifth Circuit

SHLB Coalition and Partners File Brief Defending Universal Service Fund in the Fifth Circuit

WASHINGTON, D.C. (March 20, 2026) – The Schools, Health & Libraries Broadband (SHLB) Coalition, Benton Institute for Broadband & Society, National Digital Inclusion Alliance (NDIA) and MediaJustice today filed a joint brief in the U.S. Court of Appeals for the Fifth Circuit defending the Federal Communications Commission's (FCC) Universal Service Fund (USF) against a renewed legal challenge brought by Consumers' Research and other petitioners.

The brief filed today in Consumers' Research v. FCC (No. 25-60535) urges the court to reject Consumers’ Research’s arguments that Sections 254(c)(3) and 254(h)(2) of the Communications Act violate the nondelegation doctrine, among other arguments. 

SHLB and its fellow intervenors argue that the challenge brought by Consumers’ Research fails because the statutory provisions at issue contain the same kinds of constraints the Supreme Court already upheld, including the requirement that the FCC's support mechanisms be "sufficient" and "economically reasonable." As the brief states: "Although Petitioners continue to press a nondelegation argument, they have learned none of the lessons from the Supreme Court's decision in their prior challenge." SHLB and its partners seek the same outcome in this case as the FCC, whose brief can be viewed here.

This Fifth Circuit case follows SHLB and its partners' win last year in the Supreme Court in SHLB v. Consumers’ Research (combined with FCC v. Consumers’ Research). In that case, the Supreme Court upheld the constitutionality of the USF. In the case currently being argued in the Fifth Circuit, SHLB emphasizes the Supreme Court’s previous conclusion that "Congress made clear the parameters of the programs, and the FCC has operated within them." 

"Last year, the Supreme Court confirmed that the Universal Service Fund, a bipartisan initiative with a 30-year history of successfully connecting schools, libraries, and health clinics in rural and urban areas around the country, is constitutional," said Joseph Wender, Executive Director of the SHLB Coalition. "Funding from the E-Rate and Rural Health Care programs connect students to education, library patrons to employment opportunities and rural patients to telemedicine. We are confident that the Fifth Circuit will follow the Supreme Court’s previous holding and find the Universal Service Fund constitutional." 

“The FCC’s USF programs benefit all sectors of the American public, the business community, and local, state and federal government,” said Dr. Revati Prasad, Executive Director of the Benton Institute for Broadband & Society. “And the FCC's implementation of USF falls well within longstanding Supreme Court precedent. Practically and legally, this is what we call a ‘no-brainer’ because no one is served by the demise of USF."

"We all want a country where students can keep up, veterans can get healthcare and small businesses can reach people online. The National Digital Inclusion Alliance's (NDIA) 2000+ Affiliates are working to achieve these outcomes. They are community-based organizations, libraries, local governments, housing authorities - all trusted institutions guiding their neighbors to safely get and stay online. Without the Universal Service Fund, not only will our affiliates have fewer tools to address the various aspects of the digital divide, the US will lose its ability to compete in the global economy. It's because of this that NDIA is proud to intervene and support the continuation of USF and its programs," said Amy Huffman, Policy Director, National Digital Inclusion Alliance.

The USF programs at the center of this case support broadband connectivity for 106,000 schools and more than 12,500 libraries, over 16,000 rural health care providers and more than 8.1 million low-income households through the E-Rate, Rural Health Care and Lifeline programs.

Read the full brief here.

Media Availability
Joey Wender is available for interviews. For more information, visit www.shlb.org or follow @SHLBcoalition on LinkedIn, Facebook, or X.

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About SHLB: The SHLB Coalition is a nonprofit, 501(c)(3) advocacy organization that supports open, affordable, high-quality broadband connections for anchor institutions and their surrounding communities. The SHLB Coalition is based in Washington, D.C., and has a diverse membership of commercial and non-commercial organizations across the United States. To learn more, visit www.shlb.org.