by Daniel Stefanski | Dec 4, 2024 | News
By Daniel Stefanski |
Republicans in the Arizona Legislature scored another legal victory with the nation’s high court granting cert on a case they had intervened in earlier this year.
On November 22, the Supreme Court of the United States agreed to hear FCC v. Consumers’ Research in its current term. The case will be consolidated with SHLB Coalition v. Consumers’ Research. This case involves a question of the nondelegation doctrine, which, according to the Legal Information Institute at Cornell, is “the principle that Congress cannot delegate its legislative powers or lawmaking ability to other entities.”
The decision from the U.S. Supreme Court represents a significant victory for Republicans in the Arizona Legislature, who had joined an amicus brief from state attorneys general from around the country to urge the justices to hear arguments in this case.
On its X account, Consumers’ Research reacted to the order, writing, “American citizens and consumers alike deserve basic accountability in government and in the marketplace. Americans currently are forced to pay a tax with every phone bill, set by unelected bureaucrats, at the recommendation by the same private corporation that receives the revenue. This is absurd and we believe SCOTUS will agree as the 5th circuit did.”
Arizona Senate President Warren Petersen, who was instrumental in the Arizona Legislature joining the efforts to support Consumers’ Research, told AZ Free News that, “These carriers are unlawfully taxing the public to the tune of billions of dollars. Congress should instead determine what taxes our citizens are to pay and by how much, not unelected Washington bureaucrats.”
The brief that the Arizona Legislature signed onto was joined by 15 other states, led by the West Virginia attorney general. The other states were Alabama, Arkansas, Indiana, Kansas, Louisiana, Missouri, Montana, Nebraska, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Virginia.
In their brief, the attorneys general argued that “the states – and our country – need guidance on the nondelegation doctrine,” that “those who mean to scare the court away from these issues are wrong,” that “preserving Congress’s legislative power protects the states’ interests,” and that “this court should evaluate this statute.”
They wrote, “Every year, the Federal Communications Commission extracts billions from American consumers based on a vague statute that says telecommunications providers ‘should make an equitable and nondiscriminatory contribution to the perseveration and advancement of universal service.’ The only limits on this multi-billion-dollar fee are vague notions like ‘quality’ service. And the Commission – an independent agency already shielded from accountability in its own right – doesn’t even set these rates itself. Instead, a private company picks a number that the Commission rubberstamps later.”
The attorneys general added, “Make no mistake: Amici States recognize the goal of securing universal telecommunications service is laudable. Congress can and should find a way to provide these services for everyone. But it’s a ‘fundamental principle that, no matter how laudable its purposes, the actions of our government are always subject to the limitations of the Constitution.’ Congress needs to be the one to act here, not a private band of unaccountable industry participants. The Court should grant the Petition to say so.”
The Court’s decision to hear arguments in this matter follows an opinion from the U.S. Court of Appeals for the Fifth Circuit in July, which found that “this misbegotten tax violates Article I, Section I of the Constitution.” The appeals court stated, “The Q1 2022 USF Tax is not only difficult to square with the Supreme Court’s public nondelegation precedents. It was also formulated by private entities. That raises independent but equally serious questions about its compatibility with Article 1, Section 1, which requires ‘[a]ll legislative Powers herein granted shall be vested in a Congress.’ We (1) explain that the scope of FCC’s delegation to private entities may violate the Legislative Vesting Clause by allowing private entities to exercise government power. Then we (2) explain that even if FCC’s delegation could be constitutionally justified, FCC may have violated the Legislative Vesting Clause by delegating government power to private entities without express congressional authorization.”
According to SCOTUSblog, this case will likely be argued before the U.S. Supreme Court in the spring of 2025. The justices’ opinion will be rendered in June or July at the conclusion of their term.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Corinne Murdock | Mar 16, 2024 | News
By Corinne Murdock |
The Federal Communications Commission (FCC) says that the Affordable Connectivity Program (ACP) will end come April due to a lack of funding, impacting about 552,000 Arizonans who rely on the program for discounted or free internet.
FCC Commissioner Geoffrey Starks offered that data and insight in his appearance with the director of the Treasury Department Capital Projects Fund, Joseph Wender, before the INCOMPAS Policy Summit last week. As of January, ACP has a total of about $2.5 billion left in remaining funds out of $17 billion in total appropriations. INCOMPAS is an internet and competitive networks association advocating for competition policy; member companies include Amazon, Dish, Google, Microsoft, Netflix and Verizon.
“High-speed internet is not a luxury anymore, it’s an absolute necessity,” said Starks. “If ACP ends, [I] predict that the end result will be that many of these households will be unable to stay online, will be unable to stay connected.”
ACP is part of the $14.2 billion from the Infrastructure and Investment Jobs Act (IIJA) modifying and extending the Emergency Broadband Benefit Program, now near exhausted. ACP gave certain low-income households funds to cover their monthly internet bill, as well as a one-time discount on the purchase of a laptop, desktop computer, or tablet. Monthly discounts amounted to $30 for regular Americans, and $75 for Americans living on tribal lands. Discounted electronic purchases amounted up to $100. Most of the participating companies offered internet plans for which ACP covered the total bill.
ACP-eligible families were households with an income at or below 200 percent of the Federal Poverty Guidelines, or participants in welfare programs like SNAP, Medicaid, Housing Choice Voucher Program (Section 8), public housing, SSI, WIC, or Lifeline; participants in the Free and Reduced-Price School Lunch Program or School Breakfast Program; recipients of a Federal Pell Grant; and participants in tribal-specific programs such as Bureau of Indian Affairs General Assistance, Tribal TANF, Affordable Housing Programs for American Indians, Alaska Natives, or Native Hawaiians.
Participating companies in Arizona included Spectrum (Charter Communications Operating), Mediacom, Nexus Telecom, Comcast Xfinity, Metro by T-Mobile, and Cox Communications.
Arizonans have claimed over $313.6 million as of January, according to FCC data. Maricopa County led in claims, using up over $149.7 million in ACP funds for over 266,000 households, followed by Pima County, $52.3 million for 86,200 households; Yuma County, $19.7 million for 31,900 households; Navajo County, $18.8 million for 13,200 households; Apache County, $17.6 million for 11,500 households; Pinal County, $12.7 million for 22,400 households; Mohave County, $7.5 million for 10,100 households; Coconino County, $7.4 million for 6,000 households; Cochise County, $5.8 million for 11,000 households; Yavapai County, $3.8 million for 6,300 households; Santa Cruz County, $2.4 million for 3,800 households; Gila County, $1.4 million for 2,100 households; Graham County, $821,000 for 1,200 households; La Paz County, $510,000 for 800 households; and Greenlee County, $129,000 for 180 households.
The FCC reported that no specific county or household data could be given for $12.6 million funds spanning over 7,400 households.
After ACP provides a partial reimbursement for May, the program will conclude. The FCC reported that over 23 million households were impacted by the ACP wind-down; the agency froze enrollment into the program last month.
Arizonans enrolled with ACP should have received a written notice in January notifying them of ACP’s end. A second notice should be issued by March 19, and a final notice should be issued as part of the last bill or billing cycle including the ACP discount.
An FCC survey of a sample size deemed representative of the entire ACP population reported that over two-thirds of ACP’s 23 million households, about 15.6 million, had inconsistent or zero internet access prior to ACP. 80 percent of those respondents cited affordability as the reason.
The FCC based their analysis on just over 5,300 respondents, or about .02 percent of the total ACP population.
According to the FCC, 50 percent of ACP households were Black or Latino; nearly 50 percent were military households; over 329,000 were tribal households; over 4 million were elderly households; and over 10 million were households with family members over the age of 50.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
by Corinne Murdock | May 14, 2023 | News
By Corinne Murdock |
The city of Phoenix rolled out a new, equity-focused internet subsidy program this week using federal funding.
The Federal Communications Commission (FCC) issued a $700,000 grant through the $14 billion Affordable Connectivity Program (ACP). The funds will provide discounted internet of up to $30 off per month for most households but up to $75 off per month for tribal land households. Eligible households must be at or below 200 percent of federal poverty guidelines.
Phoenix Mayor Kate Gallego announced that 80,000 households were enrolled in the program, with an estimated additional 100,000 who could qualify.
The federal program also qualifies certain households for a one-time discount of up to $100 for a laptop, desktop computer, or tablet if they contribute anywhere between $10 to $15 toward the purchase.
Those who qualify for other forms of federal welfare programs may also qualify for ACP.
The Biden administration launched the ACP through the $1.2 trillion Bipartisan Infrastructure Law in November 2021. The administration brokered a deal with 20 of the nation’s main internet providers to offer ACP-eligible households internet plans for no more than $30 per month.
Effectively, ACP-eligible households get free internet initially if they sign onto the 20 internet providers that worked with the Biden administration. The providers are Allo Communications, altaFiber (Hawaiian Telecom), Altice (Optimum), Astound, AT&T, Breezeline, Comcast, Comporium, Cox Communications, Frontier, IdeaTek, Jackson Energy Authority, Mediacom Cable, MLGC, Spectrum, Starry, Verizon, Vermont Telephone Company, Vexus Fiber, and Wow! Internet, Cable and TV.
FCC Commissioner Jessica Rosenworcel presented the ACP grant in Phoenix on Wednesday.
Rosenworcel served as commissioner under both the Obama and Trump administrations. In a 2018 profile, the Washingtonian noted that Rosenworcel had continued her equity-oriented efforts through the Trump administration.
With the apparent lobbying efforts by these main internet providers to make ACP funding permanent, it appears that Biden’s arrangement for free internet is a limited-time offer. Nearly 18 million households have signed up for ACP.
On Tuesday, Verizon Senior Vice President Kathy Grillo warned that ACP funding was projected to run out as early as the first quarter of next year. Grillo urged for a more permanent subsidy structure for internet access.
Most internet providers set their contracts to last for a mandatory minimum of two years. The ACP subsidies will only last as long as funding is afforded to it.
Corinne Murdock is a reporter for AZ Free News. Follow her latest on Twitter, or email tips to corinne@azfreenews.com.
