SUPREME COURT OF THE UNITED STATES
_________________
Nos. 24–354 and 24–422
_________________
FEDERAL COMMUNICATIONS COMMISSION,
et al., PETITIONERS
24–354
v.
CONSUMERS’ RESEARCH, et al.
SCHOOLS, HEALTH & LIBRARIES
BROADBAND COALITION, et al., PETITIONERS
24–422
v.
CONSUMERS’ RESEARCH, et al.
on writs of certiorari to the united states
court of appeals for the fifth circuit
[June 27, 2025]
Justice Gorsuch, with whom Justice Thomas and
Justice Alito join, dissenting.
Within the federal government, Congress “alone
has access to the pockets of the people.” The Federalist No. 48, p.
334 (J. Cooke ed. 1961) (J. Madison). The Constitution affords only
our elected representatives the power to decide which taxes the
government can collect and at what rates. See Art. I, §8,
cl. 1. Throughout the Nation’s history, Congress has almost
invariably respected this assignment. As this Court observed some
decades ago, it would represent “a sharp break with our traditions”
for Congress to abdicate its responsibilities and “besto[w] on a
federal agency the taxing power.”
National Cable Television
Assn., Inc. v.
United States,
415
U.S. 336, 341 (1974).
Today, the Court departs from these time-honored
rules. When it comes to “universal service” taxes, the Court
concludes, an executive agency may decide for itself what rates to
apply and how much to collect. In upholding that arrangement, the
Court defies the Constitution’s command that Congress “may not
transfer to another branch ‘powers which are strictly and
exclusively legislative.’ ”
Gundy v.
United
States, 588 U.S. 128, 135 (2019) (plurality opinion) (quoting
Wayman v.
Southard, 10 Wheat. 1, 42–43 (1825)).
Still, things could be worse. Because today’s
misadventure “sits unmoored from surrounding law,” I have reason to
hope its approach will not stand the test of time.
Loper Bright
Enterprises v.
Raimondo, 603 U.S. 369, 425 (2024)
(Gorsuch, J., concurring) (internal quotation marks omitted). And
even as the Court swallows a delegation beyond anything yet seen in
the U. S. Reports, it also signals, unmistakably, that there
are some abdications of congressional authority, including in the
very statute before us, that the present majority isn’t prepared to
stomach.
I
If you look closely at your phone bill, you
will likely notice a charge for “universal service.” Perhaps you
have wondered what that is and why you are paying for it. As it
turns out, in 47 U. S. C. §254, Congress has authorized
the Federal Communications Commission (FCC) to subsidize a number
of disparate programs under the umbrella of “universal service.”
The FCC selects which programs to pursue and how much they should
cost. To fund them, the agency taxes telecommunications companies
at a rate it controls. By regulation, those companies are then free
to pass the charges along to consumers like you. This case involves
a challenge to that scheme. To appreciate the questions it poses
for us, some background helps.
A
The phrase “universal service” has carried
different meanings at different times. Originally, it referred to
“a telephone network that covers all of a country.” M. Mueller,
Universal Service: Competition, Interconnection, and Monopoly in
the Making of the American Telephone System 1 (1997). And it meant
one network in particular: the Bell System owned by the American
Telephone and Telegraph Company (AT&T). AT&T’s president
coined the slogan in 1907—“One System, One Policy, Universal
Service”—to boost Bell’s nascent monopoly.
Id., at 4, 96.
“Universal,” as AT&T used it, focused less on telephone service
for all than on making sure AT&T provided all the service. And
the slogan proved apt: By the 1920s, the Bell System, fighting
“under the banner of universal service,” had conquered the
U. S. telephone market.
Id., at 146.
Over time, “the term ‘universal service’ took on
a new meaning.” P. Huber, M. Kellogg, & J. Thorne, Federal
Telecommunications Law §6.1.1.2 (3d ed. Supp. 2022) (Huber). For
much of the 20th century, it referred to a policy aimed at making
landline local phone service “available to all consumers at a
reasonable cost.”
Ibid. Even so, AT&T’s monopoly
remained at the heart of it all. As with other monopolistic public
utilities, federal and state governments regulated the rates the
Bell System could charge. See
Verizon Communications Inc. v.
FCC,
535 U.S.
467, 477 (2002). And, for decades, that was the key to
universal service: Regulators manipulated rates to expand
Americans’ access to telephones. See Huber §6.1.1.2. So, for
example, “[l]ong-distance rates were used to subsidize local rates,
business rates to subsidize residential rates, and urban rates to
subsidize rural rates.”
Ibid.
That system of implicit subsidies worked as long
as the same family of companies served all telephone customers. See
Verizon Communications, 535 U. S., at 480–481. But the
scheme began to falter in the 1970s and 1980s, as new long-distance
carriers entered the picture, and an antitrust consent decree spun
off AT&T’s long-distance business into a separate company, with
newly independent “Baby Bells” now providing local service. See
NYNEX Corp. v.
Discon, Inc.,
525
U.S. 128, 130–131 (1998);
Bell Atlantic Corp. v.
Twombly,
550 U.S.
544, 549 (2007). At that point, regulators could no longer
depend on the Bell System to subsidize local rates by inflating
long-distance rates. See Huber §6.2.1.2.
Still, parts of the old universal-service regime
hung on. Because the Baby Bells continued to enjoy regional
monopolies over local phone service, regulators could still rely on
them to provide some implicit subsidies, charging higher rates to
some customers while offering below-cost service to others. See
id., §6.2.1. The FCC pitched in, too, by requiring
long-distance carriers to subsidize local providers, and by
establishing a “Lifeline” program to help low-income households
afford local phone service. See
Rural Telephone Coalition v.
FCC, 838 F.2d 1307, 1311–1312 (CADC 1988); Huber §6.2.2.3;
ante, at 4.
Eventually, however, Congress decided that
universal service had to be “ripped apart and rebuilt afresh.”
Huber §2.10. In the Telecommunications Act of 1996, 110Stat. 56,
Congress “fundamentally restructure[d]” the local telephone market.
AT&T Corp. v.
Iowa Utilities Bd.,
525 U.S.
366, 371 (1999). No more, Congress declared, should the Baby
Bells enjoy regional monopolies over local phone service; now, they
must face competition, too. See
ibid. To achieve that
objective, Congress required the Baby Bells to share their networks
with new entrants seeking to offer landline local phone services.
See
Twombly, 550 U. S., at 549.[
1] But Congress also recognized that its new approach
would deal “a fatal blow” to “the preexisting system of universal
service,” for there would no longer be monopolies whose rates
regulators could adjust to subsidize some customers at the expense
of others. R. Krotoszynski, Reconsidering the Nondelegation
Doctrine: Universal Service, the Power To Tax, and the Ratification
Doctrine, 80 Ind. L. J. 239, 282 (2005).
So Congress had to reimagine “universal service”
again. In §254 of the Telecommunications Act, Congress used the
term “universal service” for the first time and invested it with a
new meaning. See Huber §6.3. Gone was Bell’s old idea that
universal service meant a single network of wires covering the
country. Gone, too, was the idea that the Bell monopoly should
subsidize basic telephone service by inflating other customers’
rates. Repurposing the slogan of universal service once more,
Congress told the FCC to decide for itself what the concept meant
and to fund programs consistent with its understanding. See
§254(c)(1). And to pay for those programs, Congress authorized the
agency to tax a broad base of interstate “telecommunications
carrier[s]” and “provider[s].” §254(d).
B
1
To understand how the scheme works, start with
the programs the FCC may fund. Section 254 describes “universal
service” as “an evolving level of telecommunications services” that
the agency must both “preserve” and “advance.” §§254(b)(5), (c)(1).
To determine which specific services to fund and at what level,
§254(c)(1) directs the FCC to “consider” four factors. Those
factors look to “the extent to which” a service (A) is “essential
to education, public health, or public safety,” (B) has “been
subscribed to by a substantial majority of residential customers,”
(C) is “being deployed . . . by telecommunications
carriers,” and (D) is “consistent with the public interest,
convenience, and necessity.” §§254(c)(1)(A)–(D).
On top of those four factors, the statute
supplies six further “principles” in §254(b). So, for instance, the
agency must “base” its funding decisions on the principles that
“[q]uality services should be available at just, reasonable, and
affordable rates,” §254(b)(1), and that “[a]ccess to advanced
telecommunications and information services should be provided in
all regions of the Nation,” §254(b)(2). In addition, the FCC may
adopt other new “principles” that it “determine[s]” to be
“necessary and appropriate.” §254(b)(7). To date, the FCC has
exercised that authority twice. One new principle requires
“competitive neutrality” among providers and technologies,[
2] and the other encourages “support
for advanced services” including “broadband networks.”[
3]
From this mash of four factors and six (now
eight) principles, the FCC must discern which programs it wishes to
fund and to what degree. And it falls to the FCC to
“ ‘balance’ ” these “factors” and
“ ‘principles’ ” “ ‘against one another when they
conflict.’ ” Reply Brief for Federal Petitioners 11–12
(quoting
Qwest Corp. v.
FCC,
258 F.3d 1191, 1200 (CA10 2001)). So, for instance, if the FCC
finds that a particular service is “essential to education,”
§254(c)(1)(A), but not “subscribed to by a substantial majority of
residential customers,” §254(c)(1)(B), the agency must pick which
part of the statute prevails. As the FCC has long put it: “[A]ll
four criteria enumerated in section 254(c)(1) must be considered,
but not each necessarily met.”
In re Federal-State Joint Bd. on
Universal Serv., 12 FCC Rcd. 8776, 8809 (1997).
Still, that is not quite the end of it. At least
when it comes to schools, libraries, and healthcare providers, two
additional provisions—§254(c)(3) and §254(h)(2)—permit the agency
to pay for “advanced” and “additional” services that go “above the
baseline of what’s been considered universal service.” Tr. of Oral
Arg. 42, 47. Consistent with these provisions, the FCC has funded
programs without regard to whether they satisfy the four factors
outlined in §254(c)(1). See 12 FCC Rcd., at 9008–9011.
Over time, the services the agency has funded
have evolved considerably. So, for example, in 1996 the FCC debated
whether to subsidize “touch-tone service,” not just old rotary
phones. 61 Fed. Reg. 10503 (1996). (The answer: Yes. 12 FCC Rcd.,
at 8809.) By 2011, the FCC “comprehensively reform[ed] and
modernize[d]” its universal-service goals to include expanding
access to internet services nationwide.
In re Connect America
Fund, 26 FCC Rcd. 17663, 17667 (2011). More recently, the
agency has announced that the Universal Service Fund will help put
Wi-Fi on school buses.
In re Modernizing the E-Rate
Program for Schools and Libraries, FCC No. 23–84 (2023)
(declaratory ruling).
2
Once the FCC decides which programs to
support, it must figure out how to pay for them. On that score,
§254(d) offers this instruction: “Every telecommunications carrier
that provides interstate telecommunications services shall
contribute, on an equitable and nondiscriminatory basis, to the
specific, predictable, and sufficient mechanisms established by the
Commission to preserve and advance universal service.” §254(d); see
§254(b)(4). In addition to those “mandatory” contributions from
common carriers, the statute also grants the FCC “permissive”
authority to compel contributions from “[a]ny other provider of
interstate telecommunications,” including noncommon carriers, “if
the public interest so requires.” §254(d); 12 FCC Rcd., at 9178.
Essentially, the agency must figure out whom to tax and how
much.
Taking up the question whom to tax, the agency
has said that every telecommunications carrier must “contribute” a
share of its revenue from interstate and international
telecommunications services (think long-distance calls). 47 CFR
§54.706 (2024). But over time, the FCC has also expanded the roster
of companies who must contribute, so that it now includes providers
of prepaid calling cards and internet-based calling. See 71 Fed.
Reg. 38781, 43667 (2006). Currently, the FCC does not tax carriers’
broadband revenues (think internet). But some have suggested that,
too, should change. See
In re Report on the Future of the
Universal Serv. Fund, 37 FCC Rcd. 10041, 10088–10094
(2022).
After deciding whom to tax, the agency must
determine how much to collect from each carrier. For that, the FCC
relies on the Universal Service Administrative Company, a Delaware
not-for-profit corporation. Congress has not expressly authorized
the FCC to outsource its responsibilities under §254. But in 1997,
the FCC directed an association of carriers to create the
Administrative Company, and the agency has assumed the task of
defining that company’s structure and role. See Brief for Federal
Petitioners 4; 47 CFR §§54.703, 54.705;
ante, at 7–8. Among
other things, FCC regulations ensure that a supermajority of the
Administrative Company’s board consists of directors who represent
industry insiders (like carriers) and groups that benefit
financially from universal-service programs (like libraries and
schools). §54.703(b)(1).
How does the Administrative Company help
calculate the tax each carrier must pay? Each quarter, the company
estimates the upcoming expenses of the FCC’s universal-service
programs. §54.709(a)(3). Once the FCC approves that figure, the
company next estimates carriers’ total revenues from interstate
telecommunications, based on their self-reported figures. This is
known as the “contribution base.”
Ibid. Finally, the FCC
calculates the ratio of projected expenses to the contribution
base, which yields the “contribution factor,” or the percentage of
its revenue each carrier must pay. §54.709(a)(2);
ante, at
7.
As the scope of the FCC’s programs has expanded,
so have the taxes the agency collects to fund them. In 1998,
universal-service disbursements totaled about $2.29 billion.
Universal Service Administrative Co., 1999 Annual Report 2. In
2024, that figure swelled to about $8.59 billion—nearly double,
adjusted for inflation. Universal Service Administrative Co., 2024
Annual Report 4. To pay for that increase, the “contribution
factor” (or tax rate) has risen, too. In 1998, carriers paid less
than 4% of their revenue from interstate and international
telecommunications. 63 Fed. Reg. 35931 (1998). Today, that figure
is nearly 37%. FCC, Public Notice, DA 25–223 (Mar. 13,
2025).[
4]
One might wonder why the Administrative Company,
dominated as it is by industry insiders, has allowed
universal-service contributions to grow so dramatically. FCC
regulations supply at least a partial explanation: “Federal
universal service contribution costs may be recovered
. . . through a line item on a customer’s bill.” 47 CFR
§54.712(a). So, in the end, it is consumers who pay for the
agency’s universal-service programs.
II
A
In 2022, a carrier, a non-profit group, and
several consumers (collectively, respondents) challenged the
present universal-service scheme. Under the Constitution, they
observed, Congress must set the federal government’s tax policies.
And, they argued, §254 offends that rule because it allows the FCC
and the Administrative Company to decide how much tax to collect
and at what rate. The Fifth Circuit largely agreed with
respondents’ submissions. See 109 F. 4th 743 (2024) (en banc).
The FCC, an association of carriers, and others (collectively,
petitioners) then sought our review.
As the dispute comes to us, it presents three
questions. First, did Congress violate the Constitution by
delegating to the FCC the power to tax? Second, did the FCC violate
the Constitution by subdelegating some of its authority to the
private Administrative Company? And third, even if neither of those
features independently offends the Constitution, does their
combination? As I see it, this case begins and ends with the first
question. Section 254 impermissibly delegates Congress’s taxing
power to the FCC, and knowing that is enough to know the Fifth
Circuit’s judgment should be affirmed.[
5]
Even when it comes to that first question, there
is much we need not address. Elsewhere, I have urged the Court to
reconsider its approach to assessing legislative delegations in
light of the Constitution’s original meaning and historic practice.
See
Gundy, 588 U. S., at 149 (dissenting opinion). But
respondents tell us we need not do so here. Instead, they argue,
§254’s delegation of authority to the FCC cannot survive even the
most forgiving standard this Court has devised for analyzing
delegations: The modern version of the “intelligible principle”
test. See Brief for Respondents 65–66. So I will focus on that
test, how it applies here, and why §254 fails it.[
6]
The Court and I approach our task from common
ground. As the Court acknowledges, the Constitution vests “[a]ll”
federal legislative power in Congress. Art. I, §1; see
ante,
at 10. Necessarily, that assignment means “no other” branch of
government may exercise legislative power.
Ante, at 10. To
enforce that rule, this Court has developed the “intelligible
principle” test.
Ante, at 11 (internal quotation marks
omitted); cf.
J. W. Hampton, Jr., & Co. v.
United
States,
276 U.S.
394 (1928). All agree, too, that the test must do
something to stop Congress from giving the President or an
executive agency a blank check to legislate. See
ibid.
On top of all that, the Court and I agree that
the intelligible principle test is not one size fits all.
Ante, at 11. Instead, “contex[t]” matters.
Ante, at
22. Among other things, that means that the “ ‘degree of
agency discretion that is acceptable’ ” depends on “ ‘the
scope of the power congressionally conferred.’ ”
Ante,
at 11 (quoting
Whitman v.
American Trucking Assns.,
Inc.,
531 U.S.
457, 475 (2001)). So, for instance, Congress might permissibly
give an agency wide leeway in designing a tax stamp. See
In re
Kollock,
165 U.S.
526, 537 (1897). But Congress must give far more detailed
instructions if it wants an agency to regulate an entire industry.
See
A. L. A. Schechter Poultry Corp. v.
United
States,
295 U.S.
495, 541–542 (1935).
B
From that common ground, however, my path and
the Court’s begin to diverge. I would start by examining the nature
of the power Congress assigned to the FCC. Under §254, the FCC may
compel carriers to “contribute” money to support what everyone
agrees is a government program. See
Wisconsin Bell, Inc. v.
United States ex rel. Heath, 604 U. S. ___, ___
(2025) (slip op., at 2). That is a quintessential tax—a “compulsory
contribution to the support of government.” 17 Oxford English
Dictionary 677 (2d ed. 1989) (defining “tax”). Several FCC
commissioners, including at least two FCC chairmen, have seen it
the same way, referring to universal-service “contributions” as
“taxes.”[
7] So have academics
and other informed commentators.[
8] Before us, as well, the FCC has said that it is
“willing” to have this Court treat universal-service contributions
“as a tax.” Tr. of Oral Arg. 53. Really, if this compulsory
contribution is not a tax, “[w]hat else would you call it?”
Bondi v.
VanDerStok, 604 U. S. ___, ___ (2025)
(slip op., at 19).
Taxation ranks among the government’s greatest
powers. Indeed, it is arguably the federal government’s “most
important . . . authorit[y].” The Federalist No. 33, p.
205 (A. Hamilton). As this Court has put it, the “power to tax is
the one great power upon which the whole national fabric is based.”
Nicol v.
Ames,
173 U.S.
509, 515 (1899); see also
McCulloch v.
Maryland,
4 Wheat. 316, 431 (1819) (“[T]he power to tax involves the power to
destroy”). Reflecting as much, the Constitution provides that all
legislation “for raising Revenue” must “originate in the House of
Representatives,” the only popularly elected chamber at the time of
the Constitution’s adoption. Art. I, §7, cl. 1; see Amdt. 17.
As the framers saw it, “the Chamber that is more accountable to the
people should have the primary role in raising revenue.”
United
States v.
Munoz-Flores,
495 U.S.
385, 395 (1990).
That context matters. To survive the
intelligible principle test, a delegation involving such a
significant power must supply more significant limits on an
agency’s discretion than when Congress confers some lesser
authority. That is not to say some “different and stricter” test
applies when Congress delegates the power to tax. See
Skinner v.
Mid-America Pipeline Co.,
490 U.S.
212, 222–223 (1989). It is instead to recognize that what
qualifies as an intelligible principle depends on “context” and
“the nature of the particular constitutional powers” at issue.
Lichter v.
United States,
334
U.S. 742, 778 (1948).
What exactly does the intelligible principle
test require in this context? Surely, history must count for
something. And it supplies at least one clear standard. As far as I
can tell, and as far as petitioners have informed us, this Court
has never approved legislation allowing an executive agency to tax
domestically unless Congress itself has prescribed the tax rate.
See,
e.
g.,
Michigan Central R. Co. v.
Powers,
201 U.S.
245, 297 (1906) (suggesting that “a direct legislative
determination of the rate” avoids “abdication of the legislative
function”); 1 T. Cooley & C. Nichols, Law of Taxation 194 (4th
ed. 1924) (Cooley & Nichols) (“The nondelegable powers
. . . include . . . the fixing of the rate of
taxation”); J. Hines & K. Logue, Delegating Tax, 114 Mich.
L. Rev. 235, 239 (2015) (Hines & Logue) (“[D]elegating
some control over income tax rates . . . would be
unprecedented in U. S. history”); cf. Tr. of Oral Arg. 39–40,
57, 78.[
9]
Applying that insight here poses petitioners
with a serious problem. “[A]ll agree” that Congress has not set the
rate at which the FCC may exact contributions.
Ante, at 12.
Instead, §254 delegates to the FCC the power to determine which
services to fund and thus the amount of money to collect. See Part
I–B–1,
supra. To secure those funds, the agency uses the
Administrative Company to set a “contribution
factor”—
i.
e., the percentage of its revenues a
carrier must pay. See Part I–B–2,
supra. That’s a tax rate.
And, remember, that rate has grown from less than 4% of carriers’
applicable revenues in 1998 to nearly 37% today—all based on the
agency’s say-so and without any change to the statute.
Ibid.
Nothing in the U. S. Reports suggests that an executive agency
may exercise that kind of power over taxation.
To be sure, petitioners identify an exception to
the historic rule that only Congress may set tax rates. Sometimes,
they point out, Congress has declined to supply a rate and instead
opted to cap the total sum the Executive may collect. See Brief for
Petitioner SHLB Coalition et al. 38–39; Brief for Respondents
33–36; Reply Brief for Federal Petitioners 6–7; see
Veazie
Bank v.
Fenno, 8 Wall. 533, 542 (1869). But none of this
solves petitioners’ problem. For one thing, petitioners identify no
example of a lump-sum delegation outside of direct taxes on
property—a unique context where the Constitution’s apportionment
requirement makes it practically impossible for Congress to set
taxes by rate.[
10] For
another, and even setting aside that difficulty, the lump-sum
exception still would not save §254. As the Court acknowledges, the
statute before us “contains no determinate cap.”
Ante, at
12. Instead, the FCC gets to decide for itself how much to
collect—and, over time, has exercised that authority to double that
amount. See Part I–B,
supra.
III
Having failed to identify a single example
where this Court has approved a tax delegation like this one,
petitioners and the Court propose a workaround. Yes, they concede,
§254 “imposes no quantitative . . . limits on how much
money the FCC can raise.”
Ante, at 19. But, they contend,
Congress has provided guidance that amounts to a “qualitative” cap.
Ibid.; see,
e.
g., Brief for Federal
Petitioners 29–30. To support that claim, petitioners and the Court
emphasize that §254(d) requires the FCC to collect taxes
“sufficient . . . to preserve and advance universal
service.” The word “sufficient,” they submit, “imposes an
obligation” on the FCC “to ensure that the [Universal Service] Fund
is large enough, but not too large, to achieve the statutory goals”
Congress supplied. Brief for Petitioner SHLB Coalition et al.
23. And, they continue, Congress has laid out those goals in a
“detailed” way that “cabin[s] the FCC’s exercise of delegated
authority.”
Id., at i.
Even taken on its own terms, I find that
response unpersuasive. For argument’s sake, assume that, instead of
fixing the rate at which the FCC can tax, Congress may permissibly
impose a numerical limit on receipts. Assume, too, that
“qualitative” instructions may sometimes provide guidance
functionally equivalent to a numerical limit. Even then, §254’s
“qualitative” instructions hardly measure up. Really, the numbers
speak for themselves. Recall that in 1998, the FCC disbursed about
$2.29 billion. Part I–B–2,
supra. A quarter century later,
that figure hit about $8.59 billion.
Ibid. Even adjusting
those figures for inflation, the FCC has nearly doubled the amount
of tax it collects.
Ibid. Far from supplying “qualitative”
directions akin to a numerical cap, §254 supplies little more than
a blank check.
Truth be told, the Court does not find its own
response entirely persuasive, either. It upholds the ability of the
FCC to tax and spend for universal-service programs under
§254(c)(1). See
ante, at 21–26. But, recall, §§254(c)(3) and
(h)(2) also allow the FCC to support “advanced” and “additional”
services without regard to §254(c)(1)’s factors. See Part I–B–1,
supra. And in a remarkable footnote, the Court scruples to
say those two provisions sufficiently constrain the agency’s taxing
power. See
ante, at 26, n. 9. All the Court is willing
to defend, in other words, is whatever level of taxation suffices
to support universal service as defined under §254(c)(1), and no
more. Consider each of these moves in turn.
A
Start with the parts of §254 the Court does
defend—the programs the FCC supports pursuant to §254(c)(1).
Together with §254(d), that provision merely tells the FCC to tax
carriers in an amount “sufficient” to “preserve and advance
universal service.” To my eyes, it’s hard to see how that direction
might be fairly analogized to a numerical cap. The statute,
remember, does not say what “universal service” is, and the phrase
bears no established meaning. To be sure, I have a good sense of
what “universal service” meant when the Bell System used it to
protect its monopoly. See Part I–A,
supra. I have an idea,
too, of what the phrase came to mean later, as a shorthand for the
practice of regulating rates so most Americans could afford basic
phone service. See
ibid. But, as we have seen, the 1996 Act
“ripped apart” the old notion of universal service. Huber §2.10.
Going forward, Congress declared, the meaning of universal service
would “evolv[e].” §254(c)(1). In what directions? Congress left
that for the FCC to work out.
Of course, the statute proceeds to offer
some direction to the agency about what qualifies as
“universal service,” and thus how much it can tax and spend. But,
even viewed charitably, that guidance can hardly be described as
the functional equivalent of a numerical cap. Just recall what the
statute actually says. It instructs the FCC to discern the
“evolving” meaning of “universal service” from the primordial soup
of four factors found in §254(c)(1), as supplemented by six
principles discussed in §§254(b)(1)–(6), as well as whatever
further principles (two and counting) the agency chooses to devise
under §254(b)(7). See Part I–B–1,
supra. Many of these
factors and principles address competing goods, and any effort to
weigh them all can yield no more certainty than asking
“ ‘whether a particular line is longer than a particular rock
is heavy.’ ”
National Pork Producers Council v.
Ross, 598 U.S. 356, 381 (2023) (plurality opinion).
Recognizing as much, the FCC acknowledges that it falls to the
agency to decide how best to proceed (and therefore how much to
tax) when the statute’s abundance of factors and principles
“conflict.” Brief for Federal Petitioners 31 (internal quotation
marks omitted). In no way can this “preface of generalities as to
permissible aims” be fairly compared to a firm cap.
Schechter
Poultry, 295 U. S., at 537.
Experience proves the point. In 1996, recall,
the hot debate was whether to subsidize “touch-tone service.” 61
Fed. Reg. 10503. But in 2011, the FCC steered the Universal Service
Fund away from simply making basic telephone service available and
toward expanding access to “broadband, both fixed and mobile.” 26
FCC Rcd., at 17670. By 2019, the FCC’s Connect America Fund was
spending nearly $5 billion annually on high-speed internet services
for “rural or remote areas that are costly to serve.” GAO, A. Von
Ah, Telecommunications, FCC Should Enhance Performance Goals and
Measures for Its Program To Support Broadband Service in High-Cost
Areas 1 (GAO–21–24, Oct. 2020). And why stop there? Nothing, it
seems, would prevent the FCC from choosing to tax and spend to
provide a mobile satellite internet device (like Starlink) to
everyone who owns a business, home, or hunting cabin in rural
America. Cf.
In re Application for Review of Starlink Servs.,
LLC, 38 FCC Rcd. 12201, 12205–12206 (2023) (revoking a previous
$885 million award to Starlink).
Searching for some way (any way) to support the
notion that §254(c)(1) contains a “qualitative” cap on how much the
FCC can tax and spend, the Court eventually resorts to rewriting
the statute. Now, it says, the FCC can fund a service only if it
meets
all of subsection (c)(1)’s four factors.
Ante,
at 23, 27. So, the Court stresses, subsection (c)(1)(B) asks
whether a particular service “has ‘been subscribed to by a
substantial majority of residential customers.’ ”
Ibid.
As a result, the Court reasons, the FCC cannot fund any service
unless most Americans already have it.
Ibid. Likewise, the
Court asserts, §254(b)’s instruction that the FCC “shall base” its
funding decisions on the principles discussed there means that the
FCC “must” satisfy
all of those principles before funding
any program. See
ante, at 23, 26.
It’s a nice theory. But it bears no resemblance
to the law Congress adopted. By its terms, §254(c)(1) requires the
FCC only to “consider the extent to which” each factor applies. The
statute nowhere says each (or any) of those criteria “has to be
met” before the agency can fund a particular service.
Ante,
at 27. In fact, the FCC has long and consistently understood the
statute to mean the opposite: “[A]ll four criteria enumerated in
section 254(c)(1) must be considered,
but not each necessarily
met.” 12 FCC Rcd., at 8809 (emphasis added).[
11]
The same goes for subsection (b). It says that
the FCC “shall base” funding decisions on various “principles.” But
each of those principles is framed as a “should,” not a “must.” So,
for example, subsection (b)(1) provides that the FCC “should” make
“[q]uality services . . . . available at
. . . affordable rates.” And subsection (b)(2) says that
the FCC “should” ensure “[a]ccess to advanced . . .
services” is “provided in all regions of the Nation.” In this
context, “[t]he term ‘should’ indicates a recommended course of
action, but does not itself imply the obligation associated with
‘shall.’ ”
Qwest Corp., 258 F. 3d, at 1200.
Reflecting that understanding, the FCC has long read §254(b) as
requiring it to consult all of that provision’s various principles,
but not as “impos[ing] inflexible requirements” on
universal-service programs.
Connect America Fund Phase II
Auction, 33 FCC Rcd. 1428, 1468, n. 229 (2018). Instead, each
provision supplies “ ‘only a principle, not a statutory
command,’ ” which the agency may “ ‘ignore’ ” in
service of other principles found in the statute.
Rural Digital
Opportunity Fund Phase I Auction, 35 FCC Rcd. 6077, 6119,
n. 262 (2020) (quoting
Alenco Communications, Inc. v.
FCC,
201 F.3d 608, 621 (CA5 2000)); see also
In re Lifeline &
Link Up Reform & Modernization, 27 FCC Rcd. 6656, 6759, n.
636 (2012);
Rural Cellular Assn. v.
FCC, 588 F.3d
1095, 1103 (CADC 2009).[
12]
In its zeal to save subsection (c)(1) programs
(why else ignore what the statute actually says?), the Court throws
all that aside and seizes the drafting pen. So the meaning of
“universal service” evolves once more. Only now, it is the Court’s
creation through and through. And if that were not bad enough, the
Court’s late-night rewrite hardly helps its cause. Even as revised,
the statute still falls well short of imposing anything like a
numerical cap on how much the FCC can tax and spend. Suppose
tomorrow the agency decides to ensure “every American [has] a cell
phone and a cell phone plan.” Tr. of Oral Arg. 62–63. Could anyone
complain that “a substantial majority of residential customers” do
not use cell phones? §254(c)(1)(B). I doubt it.
Not only does the Court’s new statute fail to
deliver on its only assignment, it promises to backfire, too.
Rather than preserve the status quo, as the Court so clearly
desires, its revisions threaten to render existing programs
illegal—all while leaving the FCC (and program beneficiaries)
guessing about the implications for future initiatives. Take an
example. Back in 2017, the FCC launched a multibillion-dollar
effort to promote “broadband service in unserved high-cost areas.”
In re Connect America Fund, 32 FCC Rcd. 1624 (2017).
Among other things, the program subsidizes certain high-speed
services that, the FCC has acknowledged, are not yet embraced by “a
substantial majority of residential customers.”
Id., at 1631
(internal quotation marks omitted). If we had simply confessed the
obvious—that this statute is unconstitutional—Congress could have
responded easily with the simple addition of a rate or, perhaps, a
cap. But now? Now, the FCC can fund a program only if it satisfies
all subsection (b) principles and
all subsection (c)
factors—a novel requirement that calls existing programs into
question and promises profound implications for future ones as
well. Far from avoiding any short-term disruption, the Court’s new
statute promises plenty of chaos of its own.[
13]
B
So much for the Court’s renovation of
§254(c)(1). Now consider the two provisions the Court cannot bring
itself to defend. Sections 254(c)(3) and (h)(2), recall, permit the
FCC to fund “additional” and “advanced” services for “schools,
libraries, and health care providers.” See Part I–B–1,
supra. Even the Court is unwilling to say that these
provisions impose a “qualitative” cap—and understandably so. When
it comes to deciding what programs to fund under §254(c)(3) and
§254(h)(2), the FCC is unconstrained by any of the subsection
(c)(1) factors the Court rewrites and leans on so heavily today.
See
In re Federal-State Joint Bd. on Universal Serv.,
12 FCC Rcd., at 9008–9011; Tr. of Oral Arg. 42, 47. Subsection
(c)(3) makes that explicit: The FCC may designate services for
support under that provision “[i]n addition to the services
included in the definition of universal service under paragraph
(1).”
Here, too, experience illustrates just how
uncapped the FCC’s §254(c)(3) and §254(h)(2) programs really are.
For some years, the FCC has relied on those provisions to fund
internet access at schools and libraries. 89 Fed. Reg. 67304–67305
(2024). But, in 2024, the FCC announced that it would also begin
funding “Wi-Fi hotspots and services to be used off-premises by
students, school staff, and library patrons.”
Id., at 67304,
67318. As far as the FCC sees it, subsections (c)(3) and (h)(2)
might allow it to collect enough taxes to supply take-home hotspots
to anyone with a library card. See Tr. of Oral Arg. 43–44. Or maybe
even take-home Starlink devices for library patrons nationwide, to
help shrink the “digital divide between [Americans] with access to
broadband at home and those without.”
In re Addressing the
Homework Gap Through the E-Rate Program, FCC No. 24–76,
p. 12 (2024).
Rather than address the constitutionality of the
FCC’s power to tax and spend for §254(c)(3) and §254(h)(2)
programs, the Court dodges the question. Buried in a footnote
midway through its opinion, it offers this: “We have no occasion to
address any nondelegation issues raised by Sections 254(c)(3) and
(h)(2),” the Court says, because while respondents challenged “the
contribution scheme generally,” they did not name those provisions
“in particular.”
Ante, at 26, n. 9.
It is a perplexing maneuver, and I suspect the
parties will find it quite the surprise. Not one of them suggested
cleaving off portions of the statute in this way. Still, the
Court’s late-breaking move is, in one sense, to its credit. Though
it is unwilling to say aloud that any part of §254 fails the
intelligible principle test, neither can the Court bring itself to
bless such a lavish delegation of taxing authority. As a result,
respondents remain free on remand, or in a future proceeding, to
renew their attack on the constitutionality of whatever
contributions the FCC demands for its subsection (c)(3) and (h)(2)
programs. And that in itself is a notable development: Today marks
the first time in a long time that the Court has confronted a
statutory delegation and found no way to save it.
IV
Return, now, to the portion of §254 the Court
is willing to defend—the programs the FCC supports pursuant to
subsection (c)(1). No one disputes that part of the statute lacks a
tax rate or a numerical cap. And rewritten or not, that provision
lacks anything approaching a “qualitative” cap as well. Faced with
these difficulties, in the end petitioners and the Court resort to
changing the conversation. Now, they say, look to other fields. The
Court has allowed agencies “to raise revenue” through fees “without
specifying a numeric cap or . . . rate.”
Ante, at
14. The Court has allowed agencies to set “ ‘just and
reasonable’ rates” and to regulate in the “ ‘public
interest.’ ”
Ante, at 22. And, petitioners and the
Court reason, if those delegations are permissible, this one must
be, too.
Ante, at 22–23; Brief for Federal Petitioners
11
. Failing all else, petitioners and the Court add that
they see no practical value in requiring Congress to speak more
clearly about the scope of permissible universal-service taxes.
Ante, at 18–19; Tr. of Oral Arg. 8–9.
But the Court’s comparisons disregard its own
insight that context matters in applying the intelligible principle
test.
Ante, at 11, 22. Nor, in my view, is it any answer to
say that legislation supplying a rate or real cap might still leave
the FCC with some measure of discretion. Though the Constitution
does not require Congress to make every decision, there are some
choices that belong to Congress alone—including setting a tax’s
rate or, at least, capping receipts.
A
Start with the Court’s assertion that
“Congress has often enacted statutes empowering agencies to raise
revenue without specifying a numeric cap or tax rate.”
Ante,
at 14. To sustain that point, the Court relies on a list of nine
examples offered by the government.
Ibid. (citing Reply
Brief for Federal Petitioners 7–9). The private petitioners
highlight the same provisions, which, it seems, provide “the best
precedents” for §254. Tr. of Oral Arg. 82–84; see
id., at 8,
31, 37–38.
Those provisions all have something in common:
Each describes a fee. And that makes them poor benchmarks for a tax
delegation. Fees, by definition, are payments made in “compensation
for a service provided to, or alternatively compensation for a cost
imposed by, the person charged the fee.”
Mueller v.
Raemisch, 740 F.3d 1128, 1133 (CA7 2014); accord,
Pace v.
Burgess,
92 U.S.
372, 375–376 (1876). For that reason, fees carry a built-in
intelligible principle: The government cannot collect more money
than it needs to offset a real-world cost or benefit. See
National Cable Television Assn., 415 U. S., at
341–342.
Consider one of the government’s examples, the
Federal Deposit Insurance Corporation (FDIC). See
ante, at
16. The FDIC finances its Deposit Insurance Fund through
“[i]nsurance fees” paid by FDIC-insured banks. 12
U. S. C. §1815(d). By statute, the fee each bank pays
must be “keyed to the risk of the bank’s insolvency.” M. Ricks,
Money as Infrastructure, 2018 Colum. Bus. L. Rev. 757, 803
(citing §1817(b)). In other words, the fees offset a cost the banks
impose on the FDIC—namely, their risk of failure, which the FDIC’s
insurance must underwrite. That need to compensate for a particular
cost provides an intelligible principle cabining the FDIC’s
discretion and limiting the fees it can charge to what the agency
needs to cover insurance payouts. See
id., at 803–804.
A similar principle explains the fee-setting
authority of federal courts. See Reply Brief for Federal
Petitioners 8. By statute, courts of appeals may charge “fees” in
amounts “prescribed from time to time by the Judicial Conference of
the United States.” 28 U. S. C. §1913. As the Judicial
Conference has recognized, that provision authorizes courts to
“charg[e] for services provided,” such as docketing an appeal or
admitting an attorney to practice. Report of the Proceedings of the
Judicial Conference of the United States 12, 14 (Sept. 16, 2008).
So here, too, fee levels reflect a cost imposed or a benefit
received by the payor.
Take one more example from the government’s
brief. See Reply Brief for Federal Petitioners 8–9. Congress has
authorized the Animal and Plant Health Inspection Service to charge
fees “sufficient” “to cover the cost of providing agricultural
. . . inspection” for certain “commercial aircraft.” 21
U. S. C. §136a(a)(1)(A). That provision might sound broad
because it lacks a numerical limit. In context, though, it leaves
little for the agency to do except arithmetic: To set the fee, it
“divid[es] the total costs of inspecting Commercial Aircraft by the
total number of Commercial Aircraft.”
Air Transp. Assn. of Am.,
Inc. v.
United States Dept. of Agriculture, 37
F. 4th 667, 675 (CADC 2022).[
14]
Petitioners and the Court would set all that to
the side. In their telling, this Court’s decision in
Skinner
“rendered irrelevant” the question whether a particular exaction
involves a tax or a fee.
Ante, at 15 (citing 490 U. S.,
at 223). Not so.
Skinner, to be sure, indicated that the
intelligible principle test applies to tax delegations.
Id.,
at 223. And under that test,
Skinner presented an easy case.
The statute at issue there told the government (numerically) how
much money it could raise.
Id., at 219–220 (“the ceiling on
aggregate fees . . . is set at 105 percent of the
aggregate appropriations made by Congress for that fiscal year”).
In light of that and other instructions, the Court held, the
statute provided an intelligible principle regardless of whether it
imposed a tax or a fee.
Id., at 220–223. That is all the
decision held. It certainly did not invite courts to ignore
relevant context or disregard the basic distinction between fees
(which incorporate an intelligible principle by nature) and taxes
(which do not).[
15]
Perhaps sensing as much, the Court ultimately
retreats from precedent into pragmatism. Trying to distinguish
taxes from fees, it contends, would risk plunging the Court into “a
morass.”
Ante, at 16. But the job is hardly some feat fit
for Hercules alone. Courts must, and do, routinely distinguish
between taxes and fees in many contexts. See,
e.g.,
United States v.
United States Shoe Corp.,
523 U.S.
360, 366–370 (1998) (distinguishing between fees and taxes for
purposes of the Export Clause, U. S. Const., Art. I, §9, cl.
5).
Besides, any morass here is of the Court’s own
making. In its view, the tax/fee distinction depends on whether the
charge “is for a ‘benefit’ granted to the payor that is ‘not shared
by other members of society.’ ”
Ante, at 16 (quoting
National Cable Television Assn., 415 U. S., at 341).
But that formulation is not the usual one. In defining fees, the
typical question is whether the fee compensates for a benefit
or
cost that sets the payor apart. See,
e.
g.,
United States v.
Sperry Corp.,
493 U.S.
52, 60–61 (1989);
Massachusetts v.
United States,
435 U.S.
444, 462–463, and n. 19 (1978);
Pace, 92
U. S., at 375–376;
Mueller, 740 F. 3d, at 1133;
Hines & Logue 257, n. 107; GAO, S. Irving, Federal User
Fees: A Design Guide 4, n. 4 (GAO–08–386SP, May 2008); 1
Cooley & Nichols 97–98, 109–110.[
16] Think back to the FDIC. The public undoubtedly
benefits from the fees banks pay for deposit insurance; we all
enjoy a safer banking system. But banks impose a cost on the FDIC
(their risk of failure) that distinguishes them from the general
public. Insurance fees compensate for that special cost. That is
why they are fees, not taxes.
Once we understand fees correctly, the category
plainly includes all the government’s examples and excludes §254
contributions. When carriers pay into the Universal Service Fund,
they do not gain any special benefit, such as permission “to
practice law or medicine or construct a house or run a broadcast
station.”
National Cable Television Assn., 415 U. S., at
340. (A different provision, 47 U. S. C. §158, authorizes
“application fees.”) Nor do §254 contributions offset some
regulatory cost that carriers impose on the FCC or on society.
(That falls to “regulatory fees” the FCC collects under §159.)
Instead, §254 takes money from some (carriers) and gives it to
others (libraries, schools, and the like). See
In re
Incomnet, Inc.,
463 F.3d 1064, 1066–1067 (CA9 2006). In short: Section 254
creates a classic tax-and-spend scheme, not a fee. Even the FCC
does not dispute the point. Tr. of Oral Arg. 53; see Part II–A,
supra.[
17]
B
Beyond fees, petitioners and the Court offer a
second reason to ignore the fact that §254(c)(1) programs can be
funded through taxes without a rate or fixed cap. After all, they
observe, this Court has rejected nondelegation attacks on
“authorizations to regulate in the ‘public interest’ and to set
‘just and reasonable’ rates.”
Ante, at 22 (quoting
National Broadcasting Co. v.
United States,
319 U.S.
190, 225–226 (1943), and
FPC v.
Hope Natural Gas
Co.,
320 U.S.
591, 600 (1944)). And, set next to those vague standards,
petitioners and the Court suggest, §254 offers “clear and limiting”
guidance.
Ante, at 30.
This argument neglects the Court’s own
admonition that the intelligible principle test is context
dependent. See
ante, at 11, 22. It begins by asking “what
instructions” the statute in question provides to constrain an
agency’s discretion.
Gundy, 588 U. S., at 136
(plurality opinion). Answering that question is a matter of
statutory interpretation.
Ibid. And “[i]t is a fundamental
canon of statutory construction that the words of a statute must be
read in their context,”
West Virginia v.
EPA, 597
U.S. 697, 721 (2022) (internal quotation marks omitted), because
language used in one setting may carry a meaning it does not have
in others, see
Yates v.
United States,
574 U.S.
528, 537 (2015) (plurality opinion). So even if a particular
statutory term evokes “well-known and generally acceptable
standards” in one domain, that does not mean the same term will
necessarily supply similar guidance when used in other “uncharted
fields.”
Fahey v.
Mallonee,
332
U.S. 245, 250 (1947); see also
Schechter Poultry, 295
U. S., at 534 (new context may give terms “a much broader
range and a new significance”).
This Court has recognized this point many times,
including when it comes to phrases like “public interest.” So, for
example, the Court has held that phrase may contain enough
“concrete” meaning to survive the intelligible principle test in
the “context” of broadcast licensing, where the government has to
allocate a limited spectrum of publicly owned airwaves.
National
Broadcasting Co., 319 U. S., at 216, 226 (internal
quotation marks omitted); see M. McConnell, The President Who Would
Not Be King 334 (2020) (McConnell). But, the Court has also found,
the same “public interest” criterion offers inadequate guidance to
the FCC when it comes to raising revenue.
National Cable
Television Assn., 415 U. S., at 341.
The same goes for the phrase “ ‘just and
reasonable.’ ”
Ante, at 22. This Court has sometimes
found that phrase satisfies the intelligible principle test when it
comes to setting rates for regulated monopolies like public
utilities—a context where it incorporates “concepts with a long
history at common law.” H. Friendly, The Federal Administrative
Agencies: The Need for Better Definition of Standards, 75 Harv.
L. Rev. 863, 873, n. 53 (1962); see,
e.
g.,
ICC v.
Cincinnati, N. O. & T. P. R. Co.,
167 U.S.
479, 501 (1897).[
18]
Accordingly, in that sphere, the “traditional regulatory notion of
the ‘just and reasonable’ rate” may mean
something.
Verizon, 535 U. S., at 481. But outside that sphere,
the same phrase may amount to little more than an instruction to go
forth and do good. See
Schechter Poultry, 295 U. S., at
539–540; G. Lawson, Delegation and Original Meaning, 88 Va.
L. Rev. 327, 386 (2002).
Here’s the point: Just because a phrase carries
a well-understood historic meaning in one context does not mean the
same phrase “ ‘in the abstract’ ” will suffice in every
other setting to satisfy the intelligible principle test. Reply
Brief for Federal Petitioners 3. So the fact that petitioners and
the Court can point to past decisions approving the use of a broad
phrase in a different domain proves nothing. Instead, it falls to
petitioners and the Court to show that the statutory terms
presently before us, properly understood in their particular
context, do in fact provide significant constraints on the FCC as
it exercises a significant power.
That is a burden petitioners and the Court have
not carried and cannot carry. When §254(c)(1) speaks of “universal
service,” it does not invoke “ ‘concepts with a long history
at common law.’ ”
Supra, at 31. To the contrary,
everyone agrees that §254 “ripped apart” the old understanding of
“universal service” and cleared the ground for a new one. Huber
§2.10; see Part I–A,
supra; Brief for Federal Petitioners 3;
Brief for Petitioner SHLB Coalition et al. 3. Worse, even if
one term or another in §254(c)(1) or §§254(b)(1)–(7) might claim
some meaning-giving ancestry, the statute’s mix of four factors and
six (or more) principles lacks any such pedigree. Whether those
factors and principles need only be considered, as the statute
says, or whether they must always be met, as the Court now
suggests, the FCC truly must blaze its own trail.
Notice, too, where trails like this lead. If
context could be cast aside, and a phrase like “just and
reasonable” might suffice in every season, nothing would stop
Congress from granting agencies limitless legislative power.
Congress might delegate to the Secretary of Education the authority
to set a “just and reasonable” tax on university endowments in
order to fund universal education—defined, of course, according to
four factors and six (or more) incommensurable principles. Congress
might instruct the Secretary of Health and Human Services to impose
a “just and reasonable” tax on pharmaceutical sales in order to
subsidize “universal health coverage,” defined as an “evolving
level” of care that should be available “at just, reasonable, and
affordable rates” to patients “in all regions of the Nation.” Or
Congress might let the Treasury Department set whatever “just and
reasonable” income tax rates were needed to trim the national debt
to a level “consistent with the public interest, convenience, and
necessity.” If these possibilities strike you as unhinged, it is
because you appreciate that the permissible scope of delegation
must depend on context and the nature and scope of the power
conferred.[
19]
C
Running out of precedents to work with, the
Court suggests, finally, that it would be “absurd” to ask Congress
to provide more guidance than it has.
Ante, at 18. The
argument runs this way. Respondents suggest, and I agree, that
Congress could readily cure §254’s nondelegation problem. All it
needs to do is set a tax rate or (perhaps) specify a numerical cap
or its equivalent. The Court does not dispute that a legislatively
defined tax rate would amount to meaningful guidance. But, the
Court contends, some hypothetical caps could be pointless. What if
Congress capped receipts at $5 trillion?
Ibid. To suggest
that such a law would provide an “intelligible principle,” while
insisting that §§254(b) and (c)(1) do not, strikes the Court as
mindless formalism.
Ibid.
Up to a point, I agree. It may well be that a
rate is usually required to give a domestic tax law an intelligible
principle outside the context of direct taxes. See Part II–A,
supra. Imagine, for instance, that Congress told the IRS to
collect $50 trillion of income tax from the American people and
left it at that. Few, I suspect, would suggest that instruction
supplies sufficient guidance. But even assuming that a cap alone
might be permissible when it comes to §254, the Court too readily
dismisses its constitutional value.
Forcing Congress to supply some cap, any cap,
would advance the nondelegation doctrine’s purpose of ensuring
“that the lines of accountability [remain] clear.”
Gundy,
588 U. S., at 155 (Gorsuch, J., dissenting). If Congress
adopted the Court’s ludicrously hypothetical $5 trillion
universal-service tax, the American people would at least know whom
to thank when the corresponding charges showed up on their phone
bills. Even if the FCC chose to collect only a fraction of that
amount, every Member of Congress would have to explain to his
constituents where he stood on a potential $5 trillion tax. Far
more realistically, of course, Congress would never contemplate
such a silly law, precisely to avoid those awkward conversations
(and the electoral consequences that could follow).
And that’s exactly the point. The framers
divided power among legislative, executive, and judicial branches
not out of a desire for formal tidiness, but to ensure ours would
indeed be a Nation ruled by “We the People.” See
id., at
152. By vesting executive power in a single President, the framers
hoped to ensure vigorous enforcement of the laws. See
United
States v.
Arthrex, Inc., 594 U.S. 1, 28 (2021) (Gorsuch,
J., concurring in part and dissenting in part). And by vesting
judicial power in life-tenured judges, they hoped to ensure laws
would be applied fairly by those insulated from political pressure.
See
SEC v.
Jarkesy, 603 U.S. 109, 147–148 (2024)
(Gorsuch, J., concurring). But, as the framers saw it, the power to
make the laws that govern our society belongs to elected
representatives more accountable to the people in whose name they
act. See
Gundy, 588 U. S., at 154–157 (Gorsuch, J.,
dissenting). And nowhere did the framers see that principle as
applying with greater force than in the field of taxation. See Part
II–A,
supra.
In so many other arenas, this Court vigorously
polices the Constitution’s allocation of power. We have refused to
tolerate congressional intrusions on powers reserved to the
President. See
Gundy, 588 U. S., at 168 (Gorsuch, J.,
dissenting). We have prohibited the Executive from encroaching on
power vested in Congress.
Ibid. We have found
unconstitutional, too, legislation seeking to confer judicial power
on the other branches.
Ibid.
Yet there is one exception. When Congress has
willingly surrendered its power to the Executive Branch, this
Court’s responses can only be described as feeble. Always, to be
sure, the Court dutifully recites the creed that “[l]egislative
power . . . belongs to the legislative branch, and to no
other.”
Ante, at 10. Too often, though, these professions
amount (at most) to faith without works, and the results are not
hard to see. Today, the “vast majority” of the rules that govern
our society are not made by Congress, but by Presidents or agencies
they struggle to superintend. J. Adler & C. Walker, Delegation
and Time, 105 Iowa L. Rev. 1931, 1975 (2020). Those rules reflect
not the public deliberations of elected representatives, but the
concerns of small cadres of elites. And as those cadres turn over
from administration to administration, the rules revolve, too,
inflicting whiplash on those who must live under them. If there is
any consistency over time, it may be because Presidents and their
deputies do not always call the shots: Lower level officials,
unknown to the public and sometimes even to the White House, now
make many of the rules we live by. See N. Rao, The Hedgehog &
the Fox in Administrative Law, 150 Daedalus 220, 228–229 (Summer
2021).
To its credit, the Court has sometimes mitigated
its failure to police legislative delegations by deploying other
tools, like the major questions doctrine and
de novo
review of statutory terms, to ensure the Executive “act[s] within
the confines set by Congress.”
Ante, at 8 (Kavanaugh, J.,
concurring); see
Gundy, 588 U. S., at 166–168 (Gorsuch,
J., dissenting). But every doctrine has its limits. What happens
when Congress, weary of the hard business of legislating and facing
strong incentives to pass the buck, cedes its lawmaking power,
clearly and unmistakably, to an executive that craves it? See
id., at 156. No canon of construction can bar the way. Then,
our anemic approach to legislative delegations leaves the Court
with a choice. It can permit the delegation to stand and move us
all one step further from being citizens in a self-governing
republic and one step closer to being subjects of quadrennial kings
and long-tenured bureaucrats. Or the Court can, as it does today,
usurp legislative power, rewrite the statute, and dictate its own
terms for Congress’s surrender. Either way, we wind up in much the
same place, only now with judges, rather than Presidents or
bureaucrats, making our laws.
There is another way. The Constitution promises
that our elected representatives in Congress, and they alone, will
make the laws that bind us. To honor that commitment, historical
practice and our cases suggest other guides, beyond the
intelligible principle test, for assessing when Congress has
impermissibly ceded legislative power, as I have pointed out
before. See
id., at 157–162. As I have observed, too, when
Chief Justice Taft first used the phrase “intelligible principle,”
he did not aim to displace those traditional guides, only to
summarize them.
Id., at 162 (citing
J. W. Hampton,
276 U. S., at 409); see also n. 15,
supra.
Someday, soon, we should find our way back. By employing the
modern, enfeebled form of the intelligible principle test, we do
the Constitution no favors. And by approving a delegation of
Congress’s taxing power unprecedented in this Court’s history, we
risk making matters worse yet.[
20]
Still, there is room for some optimism. The
Court today cannot bring itself to say that §§254(c)(3) and (h)(2)
survive even its milquetoast version of the intelligible principle
test. The Court also refuses to sustain §254(c)(1) as enacted,
feeling obliged instead to rewrite that provision before upholding
it. I can imagine worse outcomes than those small steps toward
home. But we can and should do better. When it comes to other
aspects of the separation of powers, we have found manageable ways
to honor the Constitution’s design. This one requires no less of
us.
Respectfully, I dissent.
Comments
Be the first to comment
Leave a Comment