Electric Co-ops Celebrate SCOTUS Ruling Upholding Rural Broadband Fund
Key Insights
The Supreme Court upheld the Universal Service Fund (USF), ensuring continued support for rural broadband providers.
Electric cooperatives, led by NRECA, praised the decision as critical for bridging the digital divide in rural America.
Over 200 rural electric co-ops rely on USF funding to expand affordable broadband access in underserved communities.
The ruling preserves a key partnership between the FCC and rural providers to enhance connectivity nationwide.
In a landmark decision, the U.S. Supreme Court ruled 6-3 to uphold the Universal Service Fund (USF), a critical funding mechanism for rural broadband providers. The ruling in FCC v. Consumers’ Research ensures continued financial support for electric cooperatives and other entities working to expand high-speed internet access in underserved rural areas. National Rural Electric Cooperative Association (NRECA) CEO Jim Matheson hailed the decision as a victory for rural America, emphasizing the USF's role in enabling affordable and reliable broadband deployment.
"Electric co-ops are at the forefront of closing the digital divide, and the USF is indispensable to our mission," Matheson stated. "This ruling safeguards the resources needed to connect rural communities and foster economic growth." NRECA had previously filed an amicus brief advocating for the preservation of the USF, citing its importance for rural broadband adoption and infrastructure development.
More than 200 rural electric cooperatives across the U.S. are actively engaged in broadband projects, leveraging USF funding to deliver transformative connectivity to their members. The Federal Communications Commission (FCC) remains a pivotal partner in these efforts, facilitating the expansion of affordable broadband services in remote and underserved regions. As locally owned businesses, electric co-ops are uniquely positioned to address the connectivity needs of rural America, fostering innovation and opportunity in areas long overlooked by larger providers.
The decision underscores the broader significance of public-private collaboration in achieving universal broadband access. With the USF intact, rural electric cooperatives can continue their work to ensure that no community is left behind in the digital age.