Universal Service Administrative Co.

Rule Changes

Ruled unlawfully created; administration in question

A federal appeals court ruled October 15 that the FCC violated federal law when it created the private nonprofit that collects and distributes roughly $9 billion a year for subsidized phone and internet service. The U.S. Court of Appeals for the Fifth Circuit said Congress never explicitly authorized the Universal Service Administrative Co., which violates the Government Corporation Control Act's requirement of congressional approval for government corporations.

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