In June 2025, the Supreme Court upheld the Universal Service Fund. The 6 to 3 ruling settled the legal fight. It also opened the door for changes to who pays into the fund and how much.
The Universal Service Fund, or USF, helps pay for phone and internet service in rural areas, schools, libraries, and hospitals. The money comes from a fee on phone and some internet bills. You may see it as Federal USF or Universal Service Fund Surcharge.
What the ruling changed
The fund itself is now safe. The fee will keep showing up on bills. The court said Congress had given the FCC the right power to run the program. There is no immediate change to your monthly cost.
Where it may go next
The FCC chair has said he wants to widen who pays into the fund. Today, the cost falls mostly on phone service. He wants to bring in big internet platforms and other digital services. If that happens, the fee on your phone bill could go down. Or it could shift to a new line on your internet bill. The shape of the change is still open.
Where the fee belongs and where it does not
USF is meant for voice service. Some carriers also apply it to broadband charges. That is where many disputes come up. The fee on a 200 Mbps internet line is often worth a closer look. We see roughly $20 to $40 a month of USF on broadband charges that may not stick to FCC guidance.
What to do today
- Find the USF charge on your last bill. Note the dollar amount and what it is applied to.
- If it is on a broadband only service, save the page. That is the kind of charge worth a written dispute.
- Watch the next two bills. Any sudden change in the rate could be a sign that broader USF reform is taking shape.