Court Grants FCC Request for Stay (for E-Rate and Universal Service Fund)

August 28, 2024

On the heels of last month’s 5th circuit court decision which challenges the constitutionality of the funding mechanism for the universal service fund (Read related blog posts here and here), the 5th circuit has granted the FCC its requested stay. (A stay is a ruling by the court in civil and criminal procedure that halts further legal process, meaning that the USF program can carry on unimpacted until the stay expires and/or another court ruling, like that of the Supreme Court, is handed down).  The FCC had submitted its request on Friday, as it looks for the Supreme Court to consider the ruling. The FCC indicated it will file its petition seeking the SCOTUS review by the end of September. The stay will expire on October 1, but if the FCC files its petition on or before September 30, the stay will remain in effect until SCOTUS hands down a decision.