The Supreme Court on Friday upheld the fee that is 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, by a 6-3 vote, reversed an appeals court ruling that had struck down as unconstitutional the Universal Service Fund, the charge that has 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 on to their customers.
A Virginia-based conservative advocacy group, Consumers' Research, had challenged the practice. The justices had previously denied two appeals from Consumers' Research after federal appeals courts upheld the program. But the full 5th U.S. Circuit Court of Appeals, among the nation's most conservative, ruled 9-7 that the method of funding is unconstitutional.