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June 30, 2025 |  By: Associated Press

Fee that provides subsidized phone and internet services has been challenged

The Supreme Court has upheld the fee added to phone bills to provide billions of dollars a year in subsidized phone and internet services in schools, libraries and rural areas.

The justices Friday reversed an appeals court ruling that had struck down as unconstitutional the Universal Service Fund, the charge that's been added to phone bills for nearly 30 years.

At arguments in March, liberal and conservative justices alike expressed concerns about the potentially devastating consequences of eliminating the fund, which has benefited tens of millions of Americans.

The Federal Communications Commission collects the money from telecommunications providers, which pass the cost to customers. A Virginia-based conservative advocacy group had challenged the practice.