Telecom Provider Fee Faces New Fight Amid High Court Contest (1)

May 30, 2025, 9:00 PM UTCUpdated: May 30, 2025, 10:02 PM UTC

Congress’s delegation of authority to the Federal Communications Commission to collect fees from telecommunications providers is an unconstitutional tax, a residential home builder said in a lawsuit Friday.

Toll Brothers Inc. urged the US Court of Federal Clams to declare that the current means of supporting its Universal Service Fund with provider fees violates the nondelegation doctrine, thereby entitling the company to compensation and damages for a government taking of property.

Toll’s lawsuit comes on the heels of another challenge to the USF currently pending before the US Supreme Court. That case, pressed by the conservative advocacy group Consumers’ Research, ...

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