Attorney General Phil Weiser urges Supreme Court to uphold crucial lifeline to internet, phone service for rural Colorado, schools, health care providers

Jan. 16, 2025 (DENVER)-As the U.S. Supreme Court reviews an important case that could determine the fate of internet and phone service for millions of people living in rural areas in Colorado and across the country, Attorney General Phil Weiser is leading a bipartisan effort urging the court (opens new tab) to keep in place a fund that supports those services.

The Universal Service Fund, or USF, was established as part of the Telecommunications Act of 1996 to promote the infrastructure necessary to provide nationwide communications services, including for rural communities, schools, and low-income users. The resources allocated by the Federal Communications Commission through the USF help make it financially feasible for companies to provide service in those areas and for communities to afford it.

"Coloradans rely on the Universal Service Fund for internet and phone service in their communities and they could lose affordable service if the Supreme Court nullifies the fund," Weiser said. "For rural Coloradans, affordable broadband, wireline, and wireless service is essential to their participation in the modern economy, access to education and health care, and participation in our democratic republic. That's why Congress created this important program. Getting rid of it would be devastating for Colorado communities and the providers that serve them."

At issue is a 2021 challenge to the USF, which is managed by the Universal Service Administrative Company, or USAC, a not-for-profit corporation created by the FCC to help with the administration of the fund. The group that originally brought the challenge argues that Congress has delegated too much power to the FCC when Congress directed the FCC to use the USF program to provide universal telecommunications service, and that the FCC has delegated too much power to USAC in its administration of the fund. While the Sixth Circuit, Eleventh Circuit, and a panel of the Fifth U.S. Circuit Court of Appeals all have rejected such claims, the full Fifth Circuit struck the USF down as unconstitutional.

In the brief filed today, Weiser and 22 other officials from other states argue that the FCC has successfully and constitutionally provided the benefits envisioned by Congress thanks to the USF, including here in Colorado.

Locally, every school district in the state uses the USF's E-Rate program to make sure students and district employees have internet access, with discounts of up to 90% for areas with the highest need, and accounting for well over half of the cost of statewide school internet service. Colorado communities have benefited from over $670 million in USF funds since 1998.

The brief highlights how educational institutions ranging from private religious schools in Denver and charter schools serving high-poverty neighborhoods in Colorado Springs and Greeley, to school districts in the mountains, the eastern plains, and the San Luis Valley all benefit.

The case is Federal Communications Commission v. Consumers' Research, No. 24-354, consolidated with Schools, Health & Libraries Broadband Coalition v. Consumers' Research, No. 24-422.

Joining Colorado on the brief filing are Arizona, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Maine, the Maine Office of the Public Advocate, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Dakota, Vermont, Wisconsin, and Wyoming.

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