SHLB Dismayed with 5th Circuit’s Outrageous USF Decision

For Immediate Release

Contact: Saskya Cabral
PR & Marketing Director
scabral@shlb.org
 

Washington, D.C. (July 24, 2024)—Today, the Schools, Health & Libraries Broadband (SHLB) Coalition, a leading advocate for community anchor institutions (CAIs) in the broadband policy arena, expressed concern about the 5th Circuit’s Universal Service Fund (USF) decision.

The 5th U.S. Circuit Court of Appeals voted 9 to 7 today to strike down the current Universal Service Funding (USF) mechanism as unconstitutional. The court’s initial three-judge panel sided with the FCC and SHLB last year, but later agreed to rehear the case en banc.

The USF provides government subsidies to support internet and phone services through programs like E-rate, Lifeline, and the Rural Health Care program. SHLB submitted an intervenor’s brief supporting the FCC in the case.

“We are deeply dismayed by the court’s decision today,” stated John Windhausen, SHLB’s executive director. “The USF provides essential broadband services to anchor institutions throughout this country, and we will continue to support the FCC as it combats these claims. Unfortunately, the court uses the USF proceeding as a vehicle for expressing its own political philosophy rather than following the explicit intention of Congress in crafting section 254 of the Communications Act. As the dissent points out, Congress and the FCC provided an ‘intelligible principle’ supporting the USF program, consistent with prior Supreme Court precedent. We look forward to overturning this decision and will continue to work to support affordable broadband for schools, libraries, healthcare providers, and the American public.”

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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 from across the United States. To learn more, visit www.shlb.org.