Telecom Alert: E-Rate and FCA Liability; Independent Agencies EO; USF Amicus Brief; Net Neutrality Reconsideration Petition; CPNI Certification Deadline [Volume XXII, Issue 8]

Supreme Court Finds FCA Applies to E-Rate Reimbursement Requests

In a unanimous decision, the Supreme Court ruled that telecommunications providers receiving E-Rate program distributions can be subject to civil liability under the False Claims Act (FCA) for obtaining excess payments in violation of the “lowest corresponding price rule.” This rule requires telecom providers to charge schools, districts, and libraries at levels that they would charge a “similarly situated” non-residential customer. The decision appears to resolve a circuit split between the Fifth and Seventh Circuits, with the former disagreeing that the government was simply regulating, not providing funds under the FCA. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

President Signs EO Limiting Independent Agency Authority

Last Monday, President Donald Trump signed an Executive Order (EO) curtailing the authority of independent agencies by subjecting draft regulations to review by the executive branch. The EO specifically requests that agencies, such as the FCC and FTC, directly consult with the White House on “priorities and strategic plans,” except for Federal Reserve monetary policies. The EO also stated that the President and the Attorney General would be the sole interpreters of the law for the executive branch, to include officials working at all federal agencies. For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239) or Tim Doughty (doughty@khlaw.com; 202-434-4271).

Republican AGs Submit Amicus Brief Against USF

A coalition of fifteen Republican attorneys general submitted an amicus brief last week urging the Supreme Court to find that the Universal Service Fund’s administration is unconstitutional. The brief advocates for the Court to reaffirm Congress’ Article I powers and avoid violations of the nondelegation doctrine, while alleging that the FCC’s delegation of key program decisions to the Universal Service Administrative Company (USAC) lacks accountability. Despite the FCC having oversight functions, the brief emphasizes that taxing and spending are core responsibilities held by Congress, and reaffirms the Fifth Circuit’s decision to declare the entire USF process as unconstitutional. The Supreme Court is set to hear oral arguments on the present case appealed from the Fifth Circuit on March 26th. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

Public Interest Groups Petition Sixth Circuit for Net Neutrality Reconsideration

A coalition of public interest groups have petitioned the Sixth Circuit to reconsider their panel decision finding that Title II of the Communications Act does not apply to broadband providers. Contrary to the panel’s findings, the petition states that broadband Internet access service (BIAS) providers fit within the Title II definition of “telecommunications service,” which aligns with sister circuit precedent in the D.C. and Ninth Circuits. Because of the conflicts between circuits, the petition argues that en banc review must be permitted due to the question being of “exceptional national importance.” For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

FCC Releases March Deadline Reminder for CPNI Certification

The FCC’s Enforcement Bureau released an enforcement advisory reminding all telecommunications carriers and interconnected VOIP providers to file their annual Customer Proprietary Network Information (CPNI) certifications by March 3, 2025. The Bureau stated that failure to comply with CPNI rules may subject providers to forfeiture actions up to $251,322 for each violation or each day of a continuing violation. Certifications can be filed through the Commission’s Electronic Comment Filing System (ECFS) via Docket No. 06-36 or through the Commission’s web-based application. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

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