Access Is a Right: What the Universal Service Fund SCOTUS Victory Means for Our Communities
Imagine trying to navigate today’s world without the internet — no access to virtual medical appointments, no online classes, no easy way to search for jobs, and no access to the vast well of digital information. For many of us, this is almost unthinkable. But for millions of Americans, especially in low-income and rural communities, this could have become a stark reality.
At Asian Americans Advancing Justice | AAJC, we believe that access to essential broadband services isn’t a luxury — it’s a fundamental right. That is why in January 2025 we joined the Lawyers’ Committee for Civil Rights Under Law in filing an amicus brief in support of the Universal Service Fund after the Fifth Circuit ruled it unconstitutional.
In a major decision last month, the U.S. Supreme Court ruled in a 6–3 decision to uphold the Universal Service Fund (USF), preserving a vital program that makes phone and internet access more affordable for low-income communities. Considering this victory, this blog will break down what the Universal Service Fund is, why it was under legal threat, and why its preservation matters so deeply for our communities.
What is the Universal Service Fund?
The Universal Service Fund (USF) is a government program designed to guarantee that all Americans, no matter where they live, have access to affordable and essential communication services, including telephone and internet access. USF is managed by the Federal Communications Commission (FCC) and administered by the Universal Service Administrative Company (USAC).
USF primarily funds two initiatives that support low-income families, students, and rural communities: Lifeline and E-Rate.
Lifeline provides a monthly discount of up to $9.25 on phone, internet, or bundled services for low-income individuals. For countless families, this small discount enables them to:
- Access vital telehealth resources.
- Participate in online classes, opening doors to education and new skills.
- Search and apply for jobs online, a critical step towards financial stability.
E-Rate is a game-changer for education and public access. This program provides crucial subsidies to help schools and libraries across the United States afford high-speed internet and telecommunications services. In just the past two years, E-Rate has supported:
- 106,000 schools and nearly 12,600 libraries, transforming them into essential access points for individuals who lack broadband internet access at home.
- 54 million students, empowering them to learn digital skills, conduct online research, and access a world of resources far beyond what their local schools can offer on their own.
Why was such a vital program suddenly in jeopardy?
In 2022, several conservative groups — most notably led by Consumers’ Research — filed a lawsuit against the FCC. The lawsuit argued that the FCC lacks the constitutional authority to collect USF fees from telecommunications providers.
Last year, the Fifth Circuit Court of Appeals sided with the challengers and declared USF unconstitutional. Their reasoning? They claimed the USF fee functions like a tax and that the FCC overstepped their authority by delegating control of the program to USAC, a private nonprofit.
On June 27, however, the Supreme Court reversed the Fifth Circuit’s ruling that USF violates the nondelegation doctrine and upheld the constitutionality of USF. In the majority opinion, Justice Kagan made it clear that “Congress sufficiently guided and constrained the discretion that it logged with the FCC to implement the universal service contribution scheme.”
The Court’s decision upholds the FCC’s decades-long mission of ensuring universal service to all Americans by supporting subsidies to rural and low-income communities, schools and libraries, and rural health care facilities. This ruling is a win for communities that rely on USF to stay connected and for advocates working to bridge the digital divide.
Why is the Universal Service Fund integral to our community?
Access to the internet is not equal. The digital divide is rooted in a history of segregation and escalates the digital redlining of communities of color. While about 83% of white adults reported having broadband at home, adoption rates are significantly lower among Black and Hispanic adults, at 68% and 75% respectively. In Asian American, Native Hawaiian, and Pacific Islander communities, 17% of respondents reported lacking high-speed internet at home, and 44% of those respondents reported living in areas that lack the infrastructure necessary to support high-speed internet.
Since its establishment in 1996, USF has helped bridge this gap by expanding broadband access to low-income communities of color. It has helped immigrant families stay in touch with their in-language communities, provided the elderly access to more affordable healthcare options, and connected vulnerable populations with job opportunities and career training programs.
What Happens Next?
The Supreme Court’s decision to uphold USF is more than just a legal victory. It’s a powerful statement that digital access is a right, not a privilege, and that no one should be left behind in the digital age. But the fight doesn’t end here.
This victory comes at a time when other critical efforts to expand digital equity are being dismantled. Over the past six months, the Trump Administration has taken direct aim at programs designed to close the connectivity gap. The Digital Equity Act, which funded community-led initiatives and helped states build more inclusive digital access plans, was abruptly shut down earlier this summer. This decision eliminates support for programs designed to connect and increase adoption rates among elders, Limited English Proficient (LEP) individuals, veterans, and racial and ethnic minority communities.
At the same time, the administration has gutted key affordability protections in the Broadband, Equity, Access, and Deployment (BEAD) program. While BEAD was designed to bring fast, reliable internet to unserved and underserved communities, the removal of affordability requirements threatens to make broadband access unattainable for the very families and communities the program was meant to serve. These rollbacks not only create new barriers, but they undo years of work by state and local governments, trusted community partners, and advocates who have worked to get their communities online.
While the SCOTUS decision to preserve the USF is a crucial step forward, it’s only one part of a much larger fight. There is more work to be done to ensure that all Americans, regardless of their income, have access to reliable and affordable internet to fully participate in society and democracy.
At Asian Americans Advancing Justice | AAJC, we advocate for universal, affordable, and accessible broadband access. We will continue to provide resources for those seeking to stay informed about telecommunications and technology issues.
For more information about our Telecommunications and Technology team, visit our website: https://www.advancingjustice-aajc.org/telecommunications-and-technology
