In a 6-3 ruling released Friday, the US Supreme Court found that a universal-service contribution scheme does not violate the nondelegation doctrine, which restricts Congress’ ability to delegate its power to federal agencies, private companies, or the other two branches of government.

Writing for the majority, Justice Elena Kagan described respondent Consumers’ Research’s reading of the Communications Act of 1934 as extravagant, countering its interpretation by describing Congress’ delegation to the Federal Communications Commission (FCC) for administration of the program as constrained and sufficiently guided.

She stated: “And the FCC, in its turn, has retained all decision-making authority within that sphere, relying on the Administrative Company only for non-binding advice. Nothing in those arrangements, either separately or together, violates the Constitution.”

The court’s decision reverses the US Court of Appeals for the Fifth Circuit’s ruling in favor of Consumers’ Research, an organization that fights “woke corporations.” The group challenged the universal service program’s constitutionality because it argued Congress may not delegate its ability to “tax” to a federal agency (the FCC) and a private organization, which manages the program on behalf of the FCC.

When Congress passed the act, it charged the FCC with promoting “universal service” of communications services to all Americans at affordable prices. The act was amended in 1996, but Congress continued directing the FCC to provide universal service to low-income customers and to those in rural areas of the country. The agency currently achieves this by charging telecommunications carriers a quarterly fee and then distributing that fee to carriers that provide phone and high-speed internet to low-income or rural customers and schools, libraries, and rural hospitals. The program distributes billions of dollars annually.

In deciding what services the FCC supports as “universal service,” it considers whether the service is “essential to education, public health, or public safety,” whether “a substantial majority of residential customers” subscribes to the service, and whether the service is offered by carriers.

The court reversed and remanded the case. Chief Justice John Roberts and Justices Sonia Sotomayor, Brett Kavanaugh, Amy Coney Barrett and Ketanji Brown Jackson joined the majority. Justices Neil Gorsuch, Clarence Thomas, and Samuel Alito dissented.