Appeals Court Strikes Down $9B Universal Service Fund, Threatening Rural Broadband Subsidies
T sits 18% above its 52-week low of $19.89.
Summary
The Fifth Circuit ruled the FCC lacked authority to create the Universal Service Administrative Co. in 1997, invalidating the mechanism that collects roughly $9 billion a year from carriers to subsidize rural, low-income, and tribal communications service. The order is stayed for at least two months while the FCC weighs its options, and the agency says it is considering all avenues. AT&T and Verizon are the most exposed carriers because they receive USF disbursements for rural buildouts and pass contribution costs to customers; losing the fund would pressure rural broadband economics and could force carriers to absorb subsidy shortfalls. The Supreme Court upheld the FCC's funding mechanism in June 2025, so this ruling sets up a direct conflict that likely heads back to the high court.
At the time of this announcement, T was trading at $23.49 on NYSE in the Trade & Services sector, with a market capitalization of approximately $161B. The 52-week trading range was $19.89 to $29.44. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.