Amicus Curiae Brief — Federal Communications Commission, et al., Petitioners v. Consumers' Research, et al.
Supreme Court briefFeb 18, 2025
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Nos. 24-354, 24-422
IN THE
Supreme Court of the United States
____________________________________________________________________________________________________________________________________________________
FEDERAL COMMUNICATIONS COMMISSION, ET AL.,
Petitioners,
v.
CONSUMERS’ RESEARCH, ET AL.,
Respondents.
____________________________________________________________________________________________________
SCHOOLS, HEALTH & LIBRARIES BROADBAND
COALITION, ET AL.,
Petitioners,
v.
CONSUMERS’ RESEARCH, ET AL.,
Respondents.
____________________________________________________________________________________________________
On Writs of Certiorari to the
United States Court of Appeals
for the Fifth Circuit
____________________________________________________________________________________________________
BRIEF OF AMICUS CURIAE
AMERICANS FOR PROSPERITY FOUNDATION
IN SUPPORT OF RESPONDENTS
————
Michael Pepson
Counsel of Record
AMERICANS FOR PROSPERITY FOUNDATION
4201 Wilson Blvd., Ste. 1000
Arlington, VA 22203
(571) 329-4529
mpepson@afphq.org
Counsel for Amicus Curiae
February 18, 2025
i
TABLE OF CONTENTS
Table of Authorities.................................................... ii
Interest of Amicus Curiae ...........................................1
Summary of Argument................................................ 1
Argument ..................................................................... 6
I.
The Separation of Powers Protects Liberty ....6
II.
The Constitution Bars Congress From
Transferring Its Legislative Power .................. 8
III.
The Universal Service Fund Makes a Mockery
of the Constitution .......................................... 12
IV.
This Court Should Restore Equilibrium Among
the Branches ................................................... 18
A. Delegation Run Riot Has Had Awful Effects on
Our Constitutional Republic .......................... 18
B. This Court Should Jettison the “Intelligible
Principle” Remark .......................................... 21
C. Line-Drawing Questions Cannot Justify
Ignoring the Constitution’s Demands ............ 22
D. There Are Judicially Manageable Standards
For Enforcing Nondelegation ......................... 24
E. Enforcing Article I’s Vesting Clause Will Have
Salutary Effects .............................................. 28
Conclusion ................................................................. 31
ii
TABLE OF AUTHORITIES
Page(s)
Cases
A.L.A. Schechter Poultry Corp. v. United
States,
295 U.S. 495 (1935) ......................... 16, 17, 26, 27
Allstates Refractory Contractors, LLC v. Su,
144 S. Ct. 2490 (2024) ....................................... 21
Allstates Refractory Contractors, LLC v. Su,
79 F.4th 755 (6th Cir. 2023) ........... 6, 8, 9, 11, 27
AT&T Corp. v. Iowa Utils. Bd.,
525 U.S. 366 (1999) ........................................... 13
Biden v. Nebraska,
600 U.S. 477 (2023) ....................................... 1, 26
BST Holdings, L.L.C. v. OSHA,
17 F.4th 604 (5th Cir. 2021) ............................. 27
Carter v. Carter Coal Co.,
298 U.S. 238 (1936) ............................................. 3
City of Arlington v. FCC,
569 U.S. 290 (2013) ........................................... 11
Clinton v. City of N.Y.,
524 U.S. 417 (1998) ........................................... 26
iii
Collins v. Yellen,
594 U.S. 220 (2021) ............................................. 6
Consumer Fin. Prot. Bureau v. Cmty. Fin.
Servs. Ass’n of Am., Ltd.,
601 U.S. 416 (2024) ............................................. 4
Consumers’ Rsch. v. FCC,
63 F.4th 441 (5th Cir. 2023) ............................. 14
Consumers’ Rsch. v. FCC,
88 F.4th 917 (11th Cir. 2023) . …8, 14, 15, 17, 21,
22, 23, 29
Dep’t. of Transp. v. Ass’n of Am. R.R.,
575 U.S. 43 (2015) ....................... 7, 11, 22, 23, 24
FEC v. Ted Cruz for Senate,
596 U.S. 289 (2022) ........................................... 19
Fletcher v. Peck,
10 U.S. (6 Cranch) 87 (1810) .............................. 9
Free Enter. Fund v. Pub. Co. Accounting
Oversight Bd.,
561 U.S. 477 (2010) ............................................. 6
Gundy v. United States,
139 S. Ct. 2116 (2019) ............. 6, 8, 21, 22, 23, 30
Huawei Techs. USA, Inc. v. FCC,
2 F.4th 421 (5th Cir. 2021) ............................... 16
Indus. Union Dep’t, AFL-CIO v. API,
448 U.S. 607 (1980) ......................................... 4, 9
iv
In re Incomnet, Inc.,
463 F.3d 1064 (9th Cir. 2006) ............... 14, 15, 17
Jarkesy v. SEC,
34 F.4th 446 (5th Cir. 2022) ............................... 8
J.W. Hampton, Jr., & Co. v. United States,
276 U.S. 394 (1928) ........................................... 21
Knickerbocker Ice Co. v. Stewart,
253 U.S. 149 (1920) ........................................... 27
Little Sisters of the Poor Saints Peter &
Paul Home v. Pennsylvania,
591 U.S. 657 (2020) ........................................... 16
Loper Bright Enters. v. Raimondo,
603 U.S. 369 (2024) ................................. 7, 22, 29
Marbury v. Madison,
5 U.S. (1 Cranch) 137 (1803) ............................ 24
McCulloch v. Maryland,
17 U.S. (4 Wheat.) 316 (1819) ........................... 26
Mistretta v. United States,
488 U.S. 361 (1989) ........................................... 22
Morrison v. Olson,
487 U.S. 654 (1988) ................................... 2, 6, 18
Nat’l Cable Television Ass’n v. United
States,
415 U.S. 336 (1974) ......................................... 3, 9
v
Nat’l Labor Relations Bd. v. Canning,
573 U.S. 513 (2014) ......................................... 6, 7
NFIB v. OSHA,
595 U.S. 109 (2022) ............................................. 8
NFIB v. Sebelius,
567 U.S. 519 (2012) ........................................... 28
Panama Ref. Co. v. Ryan,
293 U.S. 388 (1935) ..................................... 16, 26
Paul v. United States,
140 S. Ct. 342 (2019) ......................................... 30
Perez v. Mortg. Bankers Ass’n,
575 U.S. 92 (2015) ............................................... 7
Plyler v. Doe,
457 U.S. 202 (1982) ........................................... 30
Seila Law LLC v. Consumer Fin. Prot.
Bureau,
591 U.S. 197 (2020) ....................................... 6, 27
Shankland v. Washington,
30 U.S. 390 (1831) ............................................... 8
Skinner v. Mid-America Pipeline Co.,
490 U.S. 212 (1989) ........................................... 26
Texas v. Commissioner,
142 S. Ct. 1308 (2022) ....................................... 17
vi
Texas v. Rettig,
993 F.3d 408 (5th Cir. 2021) ................... 7, 18, 21
Tex. Office of Pub. Util. Counsel v. FCC,
183 F.3d 393 (5th Cir. 1999) ............................. 12
Tex. Office of Pub. Util. Counsel v. FCC,
265 F.3d 313 (5th Cir. 2001) ............................. 13
Tiger Lily, LLC v. HUD,
5 F.4th 666 (6th Cir. 2021) ............. 19, 20, 21, 28
United States v. L. Cohen Grocery Co.,
255 U.S. 81 (1921) ............................................. 26
United States v. Lopez,
514 U.S. 549 (1995) ........................................... 29
United States v. Nichols,
784 F.3d 666 (10th Cir. 2015) ............... 16, 24, 26
United States ex rel. Shupe v. Cisco Sys.,
759 F.3d 379 (5th Cir. 2014) ....................... 14, 17
Wayman v. Southard,
23 U.S. (10 Wheat.) 1 (1825)... 3, 4, 6, 8, 9, 23, 30
West Virginia v. EPA,
597 U.S. 697 (2022) ............................... 18, 23, 24
Whitman v. Am. Trucking Ass’ns,
531 U.S. 457 (2001) ......................... 16, 22, 23, 29
Yakus v. United States,
321 U.S. 414 (1944) ........................................... 16
vii
Youngstown Sheet & Tube Co. v. Sawyer,
343 U.S. 579 (1952) ........................................... 10
Constitution
U.S. Const. art. I, § 1 ............................ 3, 8, 9, 10, 22
U.S. Const. art. I, § 8 ............................................ 3, 9
U.S. Const. art. I, § 9, cl. 7 ..................................... 12
U.S. Const. art. II, § 1, cl. 1.............................. 10, 11
U.S. Const. art. III, § 1 ........................................... 10
U.S. Const. amend. V ............................................. 24
Statutes
47 U.S.C. § 254 ....................................................... 13
47 U.S.C. § 254(b) ................................................... 13
47 U.S.C. § 254(b)(7) .............................................. 14
47 U.S.C. § 254(c)(1) ............................................... 14
47 U.S.C. § 254(d) ............................................. 14, 15
47 U.S.C. § 254(d)(4) .............................................. 16
Regulations
47 C.F.R. § 54.701 .................................................. 17
47 C.F.R. § 54.701(a) .............................................. 17
viii
47 C.F.R. § 54.703 .................................................. 17
47 C.F.R. § 54.704(a) .............................................. 17
47 C.F.R. § 54.705 .................................................. 17
47 C.F.R. § 54.709(a) .............................................. 14
47 C.F.R. § 54.709(a)(3) .......................................... 17
47 C.F.R. § 54.715 .................................................. 17
Rules
Sup. Ct. R. 37.3 ......................................................... 1
Other Authorities
Aaron Gordon,
Nondelegation,
12 N.Y.U. J.L. & Liberty 718 (2019) .......... 19, 28
Amy Coney Barrett,
Suspension and Delegation,
99 Cornell L. Rev. 251 (2014) ........................... 21
Antonin Scalia,
A Note on the Benzene Case,
Reg., July/Aug. 1980 ..................................... 4, 30
Antonin Scalia,
Foreword: The Importance of Structure
in Constitutional Interpretation,
83 Notre Dame L. Rev. 1417 (2008) ................... 7
ix
Cong. Research Serv., LSB10904, Fifth
Circuit Considers Constitutionality of
the Universal Service Fund (2023) ............ 12, 13
David Schoenbrod,
Delegation and Democracy: A Reply to
My Critics,
20 Cardozo L. Rev. 731 (1999) .......................... 19
David Schoenbrod,
The Delegation Doctrine: Could the
Court Give It Substance,
83 Mich. L. Rev. 1223 (1985) ............................ 27
Declaration of Independence (1776) ...................... 11
Federalist No. 47 (Madison)..................................... 7
Federalist No. 51 (Madison)..................................... 8
Federalist No. 75 (Hamilton) ................................. 23
Federalist No. 78 (Hamilton) ................................. 24
Gary Lawson,
Delegation and Original Meaning,
88 Va. L. Rev. 327 (2002) ............................ 11, 26
Harold W. Furchtgott-Roth,
A Tough Act to Follow? (2006).......................... 15
Jennifer Mascott,
Private Delegation Outside of Executive
Supervision,
45 Harv. J.L. & Pub. Pol’y 837 (2022) .............. 11
x
John O. McGinnis & Michael B. Rappaport,
Presidential Polarization,
83 Ohio St. L.J. 5 (2022) ................................... 20
Louis J. Capozzi III,
The Past and Future of the Major
Questions Doctrine,
84 Ohio St. L.J. 191 (2023) ............................... 19
Mila Sohoni,
The Major Questions Quartet,
136 Harv. L. Rev. 262 (2022) ............................ 30
1 Montesquieu, The Spirit of Laws (Thomas
Nugent trans., 1914) ........................................... 7
Naomi Rao,
Administrative Collusion: How
Delegation Diminishes the Collective
Congress,
90 N.Y. U. L. Rev. 1463 (2015) ......................... 25
Paul Larkin,
Revitalizing the Nondelegation Doctrine,
23 Federalist Soc’y Rev. 238 (2022)............ 11, 25
Philip Hamburger,
Is Administrative Law Unlawful? (2014)........... 9
Philip Hamburger,
Nondelegation Blues,
91 Geo. Wash. L. Rev. 1083 (2023) ….4, 9, 10, 19,
20, 21, 22
xi
Randolph J. May and Andrew K.
Magloughlin,
NFIB v. OSHA: A Unified Separation of
Powers Doctrine and Chevron’s No Show,
74 S.C. L. Rev. 265 (2022)................................. 30
Ronald A. Cass,
Fixing Deference: Delegation, Discretion,
and Deference under Separated Powers,
17 NYU J.L. & Liberty 1 (2023) ........... 23, 25, 26
Ronald J. Krotoszynski, Jr.,
Reconsidering the Nondelegation
Doctrine: Universal Service, the Power to
Tax, and the Ratification Doctrine,
80 Ind. L.J. 239 (2005) .......................... 12, 14, 15
Steven G. Calabresi & Gary Lawson,
The Depravity of the 1930s and the
Modern Administrative State,
94 Notre Dame L. Rev. 821 (2019) ..................... 3
1
BRIEF OF AMICUS CURIAE
IN SUPPORT OF RESPONDENTS
Under Supreme Court Rule 37.3, Americans for
Prosperity Foundation (“AFPF”) respectfully submits
this amicus curiae brief in support of Respondents.1
INTEREST OF AMICUS CURIAE
Amicus curiae AFPF is a 501(c)(3) nonprofit
organization committed to educating and training
Americans to be courageous advocates for the ideas,
principles, and policies of a free and open society.
Some of those key ideas include the separation of
powers and constitutionally limited government. As
part of this mission, it appears as amicus curiae before
federal and state courts. Here, AFPF writes to
highlight the critical importance of enforcing the
Constitution’s bar against delegation of legislative
power and the stakes for representative selfgovernment, separation of powers, federalism, and
individual liberty.
SUMMARY OF ARGUMENT
This case is not about what constitutes sound
telecommunications policy or the wisdom of universal
services. “The question here is not whether something
should be done; it is who has the authority to do it.”
Biden v. Nebraska, 600 U.S. 477, 501 (2023). And by
1 Amicus curiae states that no counsel for any party authored
this brief in whole or in part, and no entity or person, aside from
amicus curiae or its counsel, made any monetary contribution
intended to fund the preparation or submission of this brief.
2
what process. “That is what this suit is about. Power.”
Morrison v. Olson, 487 U.S. 654, 699 (1988) (Scalia, J.,
dissenting).
At its core this case is about two competing
governance paradigms. The first is a top-down
command-and-control model based on the idea that
because modern society is purportedly too complex
(and Congress too dysfunctional) for the political
branches to make policy choices through duly enacted
legislation, those decisions must instead be made by a
caste of unelected, unaccountable “experts” whose
choices aim to promote the collective good. The second
is a bottom-up model based on the idea that vertical
and horizontal separation of powers protect individual
liberty and promote government accountability by
empowering the American People to govern
themselves through their elected representatives,
generally at the state and local level. The former
model is a modern innovation that maximizes the
coercive power of the federal government to restrict
individual liberty. The latter model, by contrast, is
deeply rooted in our history and tradition and
enshrined in the Constitution to guard against
tyranny and government oppression. This Court
should take this opportunity to reaffirm it.
After all, in this country, all governmental power
must flow from its proper source: We the People. Our
system of government relies on the consent of the
governed, memorialized in the Constitution. Our
Constitution exclusively tasks the People’s elected
representatives with making policy choices and
accessing the People’s pocketbooks, subject to
constitutional limits on federal power. And under the
Constitution, the political branches may only do so
3
through duly enacted legislation that survives
bicameralism and presentment, a deliberately
difficult process designed to ensure such laws reflect
broad political consensus.
Toward this end, the Constitution flatly prohibits
Congress from transferring any of its legislative
power to other entities, U.S. Const. art. I, § 1,
including the power “to lay and collect Taxes,” U.S.
Const. art. I, § 8. This means that such matters “must
be entirely regulated by the legislature itself[.]”
Wayman v. Southard, 23 U.S. (10 Wheat.) 1, 43 (1825).
Congress “is the sole organ for levying taxes[.]” Nat’l
Cable Television Ass’n v. United States, 415 U.S. 336,
340 (1974). And a fortiori Congress cannot transfer
“power to regulate the affairs of an unwilling
minority” to private parties; this is “legislative
delegation in its most obnoxious form[.]” Carter v.
Carter Coal Co., 298 U.S. 238, 311 (1936).
Here, Congress has done just that, transferring the
power to make legislative policy choices and levy taxes
to fund those choices to unelected administrators who,
in turn, transferred these powers to a private
company staffed by industry insiders. The Universal
Service Fund (“USF”) is unprecedented and uniquely
constitutionally offensive. And as the en banc Fifth
Circuit found, “this misbegotten tax violates Article I,
§ 1 of the Constitution.” Pet. App. 2a.
The USF is emblematic of a broader problem: “the
vast subdelegation of legislative authority that
permeates modern government.” Steven G. Calabresi
& Gary Lawson, The Depravity of the 1930s and the
Modern Administrative State, 94 Notre Dame L. Rev.
821, 853 (2019). “The administrative degradation of
4
consensual lawmaking is eating away at our
government’s
legitimacy.”
Philip
Hamburger,
Nondelegation Blues, 91 Geo. Wash. L. Rev. 1083,
1108 (2023). And as elsewhere, “here, the threats to
democracy presented by the administrative state are
not inadvertent, but intentional—a deliberate design
to turn consent of the governed into an illusion.” Pet.
App. 86a (Ho, J., concurring).
There is no way to sweep this constitutional
disorder under the rug. It is long past time for the
judiciary to “reshoulder the burden of ensuring that
Congress itself make the critical policy decisions,”
Indus. Union Dep’t, AFL-CIO v. API, 448 U.S. 607,
687 (1980) (Rehnquist, C.J., concurring in judgment),
by “hewing” the nondelegation doctrine “from the ice,”
Antonin Scalia, A Note on the Benzene Case, Reg.,
July/Aug. 1980, at 28. “There are times when it is [this
Court’s] duty to say simply that a law that blatantly
attempts to circumvent the Constitution goes too far.”
Consumer Fin. Prot. Bureau v. Cmty. Fin. Servs. Ass’n
of Am., Ltd., 601 U.S. 416, 471 (2024) (Alito, J.,
dissenting). This is one of them.
The search for an administrable principle to
delineate the nondelegation doctrine’s metes and
bounds has been a difficult one. To be sure, “the
precise boundary” delimiting the power Congress may
permissibly delegate to other entities “is a subject of
delicate and difficult inquiry[.]” Wayman, 23 U.S. (10
Wheat.) at 46. But amicus respectfully submits that
the Constitution’s protection of liberty through the
concept of nondelegation is best understood through
multiple overlapping principles and tests.
5
These include prohibitions on delegations of
government power to private entities, delegations of
core congressional functions like taxing and spending,
delegations of power to decide major questions,
delegations that lack meaningful standards to give
fair notice of required or prohibited conduct and
permit arbitrary-and-capricious review of agency
actions, and delegations of legislative policymaking
power to make general rules that bind the public and
impact private rights. Each of these guardrails has
surfaced at important moments in the past in one
form or another, and each will require thoughtful
development moving forward. Instead of searching for
an all-encompassing nondelegation theory, amicus
suggests the Court spin each of these threads to weave
a tapestry to protect the separation of powers.
This case presents an ideal opportunity to begin to
articulate judicially manageable standards for
meaningfully enforcing Article I’s Vesting Clause and
put Congress on notice that it must do its job. And
enough ink has been spilled to allow this Court to
address line-drawing questions, as necessary, on a
context-specific case-by-case basis. The sky will not
fall if this Court enforces Article I’s demands over
time. To the contrary, our constitutional Republic will
be all the healthier for it.
For the foregoing reasons, this Court should affirm
the decision below.
6
ARGUMENT
I.
The Separation
Liberty.
of
Powers
Protects
“Our Constitution was adopted to enable the
people to govern themselves, through their elected
leaders.” Free Enter. Fund v. Pub. Co. Accounting
Oversight Bd., 561 U.S. 477, 499 (2010). Underscoring
this, it “begins by declaring that ‘We the People . . .
ordain and establish this Constitution.’” Gundy v.
United States, 588 U.S. 128, 152 (2019) (Gorsuch, J.,
dissenting). In that document, the People agreed on a
system of checks and balances.
“The Constitution sets out three branches of
Government and provides each with a different form
of power—legislative, executive, and judicial.” Seila
Law LLC v. Consumer Fin. Prot. Bureau, 591 U.S.
197, 239 (2020) (Thomas, J., concurring) (citations
omitted). “[T]he legislature makes, the executive
executes, and the judiciary construes the law[.]”
Wayman, 23 U.S. (10 Wheat.) at 46. “The purpose of
the separation and equilibration of powers” required
by the Constitution is “not merely to assure effective
government but to preserve individual freedom.”
Morrison, 487 U.S. at 727 (Scalia, J., dissenting); see
Collins v. Yellen, 594 U.S. 220, 245 (2021). It also
protects “democratic values.” Allstates Refractory
Contractors, LLC v. Su, 79 F.4th 755, 769 (6th Cir.
2023) (Nalbandian, J., dissenting).
“[T]he Constitution’s core, government-structuring
provisions are no less critical to preserving liberty
than are the later adopted provisions of the Bill of
Rights.” Nat’l Labor Relations Bd. v. Canning, 573
7
U.S. 513, 571 (2014) (Scalia, J., concurring in the
judgment). Indeed, “[t]o safeguard individual liberty,
‘[s]tructure is everything.’” Loper Bright Enters. v.
Raimondo, 603 U.S. 369, 416 (2024) (Thomas, J.,
concurring) (quoting Antonin Scalia, Foreword: The
Importance
of
Structure
in
Constitutional
Interpretation, 83 Notre Dame L. Rev. 1417, 1418
(2008)). This separation “might seem inconvenient
and inefficient to those who wish to maximize
government’s coercive power.” Texas v. Rettig, 993
F.3d 408, 409 (5th Cir. 2021) (Ho, J., dissenting from
denial of rehearing en banc). But “[t]o the Framers,
the separation of powers and checks and balances
were more than just theories. They were practical and
real protections for individual liberty in the new
Constitution.”2 Perez v. Mortg. Bankers Ass’n, 575
U.S. 92, 118 (2015) (Thomas, J., concurring in the
judgment).
As James Madison explained, “[t]he accumulation
of all powers, legislative, executive, and judiciary, in
the same hands . . . may justly be pronounced the very
definition of tyranny.” Federalist No. 47; see 1
Montesquieu, The Spirit of Laws bk. 11, ch. 6, at 163
(Thomas Nugent trans., 1914) (“When the legislative
and executive powers are united in the same person .
. . there can be no liberty[.]”). And “the great security
against a gradual concentration of the several powers
in the same department, consists in giving to those
2 “At the heart of this liberty were the Lockean private rights:
life, liberty, and property. If a person could be deprived of these
private rights on the basis of a rule (or a will) not enacted by the
legislature, then he was not truly free.” Dep’t. of Transp. v. Ass’n
of Am. R.R., 575 U.S. 43, 76 (2015) (Thomas, J., concurring).
8
who administer each department the necessary
constitutional means and personal motives to resist
encroachments of the others.” Federalist No. 51
(Madison). That remains true today.
II.
The Constitution Bars Congress From
Transferring Its Legislative Power.
“The Constitution imposes important limits on
how the government goes about doing its job.”
Consumers’ Rsch. v. FCC, 88 F.4th 917, 938 (11th Cir.
2023) (Newsom, J., concurring), and “provides strict
rules to ensure that Congress exercises the legislative
power in a way that comports with the People’s will,”
Jarkesy v. SEC, 34 F.4th 446, 459 (5th Cir. 2022), aff’d
on other grounds, 603 U.S. 109 (2024). To protect
liberty, “the framers went to great lengths to make
lawmaking difficult,” requiring “that any proposed
law must win the approval of two Houses of Congress
. . . and either secure the President’s approval or
obtain enough support to override his veto.” Gundy,
588 U.S. at 154 (Gorsuch, J., dissenting).
Congress may not duck the Constitution’s
accountability checkpoints by divesting itself of its
legislative responsibilities. See NFIB v. OSHA, 595
U.S. 109, 124–25 (2022) (per curiam) (Gorsuch, J.,
concurring). “Article I vests the ‘Senate and House of
Representatives’ (and them alone) with ‘[a]ll
legislative powers.’” Allstates, 79 F.4th at 769
(Nalbandian, J., dissenting) (quoting U.S. Const. art.
I, § 1). The Constitution bars Congress from
transferring “powers which are strictly and
exclusively legislative” to other entities. Wayman, 23
U.S. (10 Wheat.) at 42; see Shankland v. Washington,
30 U.S. 390, 395 (1831) (“[T]he general rule of law is,
9
that a delegated authority cannot be delegated.”).
That includes Congress’s power “to lay and collect
Taxes.” U.S. Const. art. I, § 8; see Nat’l Cable
Television Ass’n, 415 U.S. at 340 (“Taxation is a
legislative function, and Congress, [] is the sole organ
for levying taxes[.]”).
Instead, such matters “must be entirely regulated
by the legislature itself[.]” Wayman 23 U.S. (10
Wheat.) at 43; see Fletcher v. Peck, 10 U.S. (6 Cranch)
87, 136 (1810) (“It is the peculiar province of the
legislature to prescribe general rules for the
government of society[.]”). This means “the hard
choices” “must be made by the elected representatives
of the people.” Indus. Union Dep’t, 448 U.S. at 687
(Rehnquist, J., concurring in judgment). And
“Congress, not some official in the Executive Branch,
creates laws.” Allstates, 79 F.4th at 769 (Nalbandian,
J., dissenting).
The Constitution’s text makes this pellucidly clear.
Article I provides: “All legislative Powers herein
granted shall be vested in a Congress[.]” U.S. Const.
art. I, § 1; see Philip Hamburger, Is Administrative
Law Unlawful? 388 (2014) (“Americans clearly
understood how to write constitutions that expressly
permitted the subdelegation of legislative power to
the executive, and they did not do this in the federal
constitution.”). This provision “speaks of what shall be
vested and thereby bars delegation of the legislative
10
powers.”3 Hamburger, 91 Geo. Wash. L. Rev. at 1168.
“The phrase shall be vested is decisive. It emphatically
reinforces what already should be clear, that the
Constitution’s vesting of powers is not just an initial
distribution—like an initial dealing out of cards.” Id.
at 1174 (emphasis in original).
The Constitution’s structure reenforces this
understanding. For example, by contrast to Article I’s
Vesting Clause, the Constitution “expressly
acknowledged” circumstances “when Congress can
designate the location of one of the tripartite powers,”
such as in Article III’s judicial vesting clause. Id. at
1175; see U.S. Const. art. III, § 1. “Given that Article
III spells out that Congress may determine the
location of some judicial power, it is nearly comic to
observe so much scholarship strive to show that
Article I did this for legislative power.” Hamburger,
91 Geo. Wash. L. Rev. at 1175. Article II’s executive
vesting clause “provides a third textual basis for
rejecting transfers of legislative power,” making clear
that the President “is not and cannot be vested with
either of the other tripartite powers.”4 Id. at 1176; see
“This conclusion is reinforced by other portions of the text:
Article III’s vesting of judicial power and Article II’s vesting of
executive power.” Hamburger, 91 Geo. Wash. L. Rev. at 1168
(citing U.S. Const. art. II, § 1, cl. 1; id. art. III, § 1). The
Constitution’s “shall be vested” language “textually emphasizes
that its powers cannot be rearranged.” Id. at 1071.
3
“[T]he President’s power to see that the laws are faithfully
executed refutes the idea that he is to be a lawmaker. The
Constitution limits his functions in the lawmaking process to the
recommending of laws he thinks wise and the vetoing of laws he
thinks bad.” Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S.
579, 587 (1952); see id. at 632 (Douglas, J., concurring).
4
11
City of Arlington v. FCC, 569 U.S. 290, 304 n.4 (2013)
(“[U]nder our constitutional structure” federal
agencies’
activities “must
be exercises
of—the
‘executive Power.’” (quoting Art. II, § 1, cl. 1)).
Founding-era practice further underscores that
Congress cannot delegate its legislative power.
Around the Framing, “statutes authorized the
executive to create rules that were only ‘binding’ on
executive officials, not members of the public.”
Allstates, 79 F.4th at 788 n.17 (Nalbandian, J.,
dissenting) (citation omitted). And “members of [the
First] Congress viewed themselves as the actors
responsible for reaching finely grained policy
determinations that would impact and bind the
public.” Jennifer Mascott, Early Customs Laws and
Delegation, 87 Geo. Wash. L. Rev. 1388, 1449 (2019).
Broader historical context lends additional
support. Prominent among the Founders’ grievances
against King George III was that he had “erected a
multitude of New Offices, and sent hither swarms of
Officers to harrass our people[.]” Decl. of
Independence ¶ 12 (1776); see id. ¶ 17 (“imposing
Taxes on us without our Consent”). Going back
further still, “Magna Carta [likewise] bolsters the
argument that the Constitution limits the type of
lawmaking that nonelected federal officials may
undertake. Would the English barons have
understood the term ‘law of the land’ to include
diktats from King John, the very person that Chapter
39 was designed to restrain?” Paul Larkin,
Revitalizing the Nondelegation Doctrine, 23 Federalist
Soc’y Rev. 238, 262 (2022).
12
In sum, “the Vesting Clauses are exclusive,” which
means “that the branch in which a power is vested
may not give it up or otherwise reallocate it.” Ass’n of
Am. R.R., 575 U.S. at 74 (Thomas, J., concurring).
“The Vesting Clauses, and indeed the entire structure
of the Constitution, make no sense otherwise.” Gary
Lawson, Delegation and Original Meaning, 88 Va. L.
Rev. 327, 340 (2002).
III.
The Universal Service Fund Makes a
Mockery of the Constitution.
Section 254 of the Telecommunications Act of 1996
runs roughshod over the Constitution’s structural
guardrails. Among delegations, “§ 254 stands alone.”
Pet. App. 40a. It not only transfers “to FCC the power
to make important policy judgments,” Pet. App. 40a,
but “bestowed upon FCC the power to levy taxes” to
fund those choices, Pet. App. 23a. On top of this, “the
statute insulates FCC from the principal tool
Congress has to control FCC’s universal service
decisions—the appropriations power.” Pet. App. 31a
(citing U.S. Const. art. I, § 9, cl. 7).
Since 1934,“Congress has made universal service
a basic goal of telecommunications regulation.”5 Tex.
Office of Pub. Util. Counsel (TOPUC I) v. FCC, 183
F.3d 393, 405 (5th Cir. 1999). Today, it remains “a
significant part of U.S. telecom policy.” Cong.
The USF “is a social welfare subsidy program that benefits
certain consumers” “by imposing taxes on other consumers.”
Ronald J. Krotoszynski, Jr., Reconsidering the Nondelegation
Doctrine: Universal Service, the Power to Tax, and the
Ratification Doctrine, 80 Ind. L.J. 239, 278 (2005).
5
13
Research Serv., LSB10904, Fifth Circuit Considers
Constitutionality of the Universal Service Fund 4
(2023).6 To further this broad goal, Congress enacted
§ 254 of the Telecommunications Act of 1996, which
created the USF and delegated to FCC effectively
untrammeled power to administer it. See generally 47
U.S.C. § 254. Problematically, the 1996 Act—which
“profoundly affects a crucial segment of the economy
worth tens of billions of dollars”—“is in many
important respects a model of ambiguity,” granting
“‘most promiscuous rights’ to the FCC[.]” AT&T Corp.
v. Iowa Utils. Bd., 525 U.S. 366, 397 (1999). That well
describes § 254.
There, Congress tasked the FCC (and a FederalState Joint Board) with setting “policies for the
preservation and advancement of universal service[.]”
47 U.S.C. § 254(b). Congress, however, said precious
little about how to do this, instead punting the policy
choices necessary to achieve these broad, abstract
aims to unelected Executive officials, who, in turn,
promptly punted this duty to a private corporation. In
§ 254(b) Congress used “lofty and expansive language”
to announce seven “aspirational” principles,
“reflect[ing] congressional intent to delegate difficult
policy choices to the Commission’s discretion.” Tex.
Office of Pub. Util. Counsel (TOPUC II) v. FCC, 265
F.3d 313, 321 (5th Cir. 2001) (cleaned up).
Section
254
mandates
that
“[e]very
telecommunications carrier that provides interstate
telecommunications services shall contribute, on an
6 https://crsreports.congress.gov/product/pdf/LSB/LSB10904.
14
equitable and nondiscriminatory basis, to the specific,
predictable, and sufficient mechanisms established by
the [FCC] to preserve and advance universal service.”
47 U.S.C. § 254(d). “Notably, Congress declined to
define ‘universal service’ itself.” Pet. App. 3a; see 47
U.S.C. § 254(c)(1) (“Universal service is an evolving
level . . . that the Commission shall establish
periodically[.]”).
For
that
matter,
Congress
empowered the FCC with boundless discretion to add
universal service principles it deems “necessary and
appropriate for the protection of the public interest,
convenience, and necessity[.]” 47 U.S.C. § 254(b)(7);
see Krotoszynski, 80 Ind. L.J. at 312. In other words,
§ 254(b)’s “hazy ‘principles’” “leave the agency all the
room it needs to do essentially whatever it wants.”
Consumers’ Rsch., 88 F.4th at 931 (Newsom, J.,
concurring).
Making matters worse, “Congress delegated its
taxing power to FCC,” Pet. App. 23a, through a
“unique revenue raising mechanism,” Consumers’
Rsch. v. FCC, 63 F.4th 441, 450 (5th Cir. 2023), reh’g
en banc granted, opinion vacated, 72 F.4th 107 (5th
Cir. 2023), that grants the agency untrammeled
power to force carriers to fund its social welfare
program. The FCC does this by regulation at a rate
set quarterly known as the Contribution Factor. See
47 C.F.R. § 54.709(a); In re Incomnet, Inc., 463 F.3d
1064, 1066 (9th Cir. 2006). “The money in the USF is
provided by private telecommunication providers[.]”
United States ex rel. Shupe v. Cisco Sys., 759 F.3d 379,
387–88 (5th Cir. 2014). “The telecommunications
companies pass this cost through to their subscribers;
the charge generally appears on phone bills as the
‘Universal Service Fund Fee.’” In re Incomnet, 463
15
F.3d at 1066. This means that “American
telecommunications consumers are subject to a multibillion-dollar tax nobody voted for.” Pet. App. 81a.
Section 254 gives “essentially no[] direction about
how much telecom companies should actually be
charged[.]” Consumers’ Rsch., 88 F.4th at 931
(Newsom, J., concurring); see 47 U.S.C. § 254(d).
“[B]ecause Congress has failed to limit either the
amount of revenue to be raised or the particular
purposes to which the revenue may be used, it has
essentially given the Commission a blank check.” 7
Krotoszynski, 80 Ind. L.J. at 246. “Nothing in the
statute precludes FCC from, for example, imposing
the USF Tax to create an endowment that it could use
to fund whatever projects it might like.” Pet. App.
28a–29a. Cf. Harold W. Furchtgott-Roth, A Tough Act
to Follow? 62 (2006) (“FCC, by its own logic, had as
much authority to spend $2.25 trillion as it had to
spend $2.25 billion.”).
In sum, the statute “limits neither the objects of
the universal service program nor the funds to be
expended to achieve them[.]” Krotoszynski, 80 Ind.
L.J. at 318. Indeed, the FCC has argued “that so long
as the Commission does not violate an express
statutory command, it may use the universal-service
mechanism to achieve policy objectives contained
elsewhere in the Act.” Huawei Techs. USA, Inc. v.
FCC, 2 F.4th 421, 436 (5th Cir. 2021) (cleaned up).
Here, “Congress pointed to a problem that needed
This arrangement “permits Congress to take credit for the
benefits it provides without being accountable for the taxes used
to pay for them.” Krotoszynski, 80 Ind. L.J. at 246.
7
16
fixing and more or less told the Executive to go forth
and figure it out.”8 United States v. Nichols, 784 F.3d
666, 674 (10th Cir. 2015) (Gorsuch, J., dissenting from
denial of rehearing en banc).
“This is delegation running riot.” A.L.A. Schechter
Poultry Corp. v. United States, 295 U.S. 495, 553
(Cardozo, J., concurring). The statute grants the FCC
“an unlimited authority to determine the policy” as
the agency “may see fit.” Panama Ref. Co. v. Ryan, 293
U.S. 388, 415 (1935). FCC “is free to select as [it]
chooses . . . and then to act without making any
finding[s],” id. at 388, as it “roam[s] at will” “in that
wide field of legislative possibilities,” Schechter, 295
U.S. at 538. This “absence of standards” makes it
“impossible” “to ascertain whether the will of
Congress has been obeyed[.]” Yakus v. United States,
321 U.S. 414, 426 (1944).
The statute is “so amorphous that no reviewing
court could ever possibly invalidate any FCC action
taken in its name.” Pet. App. 41a. Indeed, one federal
judge described the interpretive challenges posed by
vacuous language in § 254(d)(4) thus: “Candidly, I
have no idea what that means. . . . [S]uch empty,
mealymouthed shibboleths provide no meaningful
constraint; to the contrary, they confer front-line law-
Any effort by the FCC to save the statute by proposing a
limiting construction should be rejected. See Whitman v. Am.
Trucking Ass’ns, 531 U.S. 457, 472 (2001). “It is [also] a
fundamental principle of statutory interpretation that absent
provisions cannot be supplied by the courts.” Little Sisters of the
Poor Saints Peter & Paul Home v. Pennsylvania, 591 U.S. 657,
677 (2020) (cleaned up).
8
17
and policymaking power on unelected, unaccountable
agency bureaucrats.” Consumers’ Rsch., 88 F.4th at
931 (Newsom, J., concurring). Exactly so.
On top of this, the FCC has re-delegated its
authority over the USF to the Universal Service
Administrative Company (“USAC”).9 See 47 C.F.R.
§ 54.701(a). “USAC is a not-for-profit private
organization that is structured pursuant to the FCC’s
regulations,” Pet. App. 13a (citing 47 C.F.R.
§§ 54.701, 54.703), and “owned by an industry trade
group,” Cisco Sys., 759 F.3d at 387. Cf. Schechter, 295
U.S. at 537 (“[W]ould it be seriously contended that
Congress could delegate its legislative authority to
trade or industrial associations or groups[?]”).
This private entity is tasked by regulation with
calculating the Contribution Factor and thus for all
practical purposes decides the rate at which the
carriers—and, by extension, the general public—are
taxed.10 See 47 C.F.R. § 54.709(a)(3); Pet. App. 6a–7a,
22a. Cf. Texas v. Commissioner, 142 S. Ct. 1308, 1309
(2022) (statement of Alito, J., respecting denial of
certiorari) (describing setting Medicaid “actuarial
standards”
as
“essentially
a
legislative
determination”). “USAC sets its own budget” and
subject to limited FCC oversight “decides if, when,
and how it disburses funds on behalf of the USF’s
beneficiaries.” In re Incomnet, 463 F.3d at 1076 (citing
47 C.F.R. §§ 54.701(a), 54.704(a), 54.705, 54.715).
9 The statute “does not even mention USAC[.]” Pet. App. 59a.
10 “As a practical matter, USAC sets the USF Tax—subject only
to FCC’s rubber stamp.” Pet. App. 7a.
18
This makes a mockery of the Constitution’s
separation of powers. And it breaks the Constitution’s
promise that only the People’s elected representatives
in Congress may make legislative choices restricting
their liberty and imposing obligations upon them.
IV.
This Court Should Restore Equilibrium
Among the Branches.
This Court should not turn a blind eye to these
serious constitutional problems. “The modern
administrative state illustrates what happens when
we ignore the Constitution: Congress passes problems
to the executive branch and then engages in fingerpointing for any problems that might result. The
bureaucracy triumphs—while democracy suffers.”
Rettig, 993 F.3d at 409 (Ho, J., dissenting from denial
of rehearing en banc) (cleaned up). That well describes
the sweeping and unprecedented dual-layer
subdelegation of legislative power at issue here.
“[T]his wolf comes as a wolf.” Morrison, 487 U.S. at
699. And it should not be allowed to stand. It is past
time for this Court to protect our Republic by
enforcing the Constitution’s structural protections.
A. Delegation Run Riot Has Had Awful
Effects on Our Constitutional Republic.
The stakes here could not be higher and involve
“basic questions about self-government, equality, fair
notice, federalism, and the separation of powers.”
West Virginia v. EPA, 597 U.S. 697, 742 (2022)
(Gorsuch, J., concurring).
The baseline Article I sets is that agencies have no
authority to act unless and until Congress confers
19
power on them via duly enacted legislation. See FEC
v. Ted Cruz for Senate, 596 U.S. 289, 301 (2022). The
Constitution deliberately makes it difficult to alter
this liberty-tilted baseline. “[T]he legitimate status
quo ante is that a government wish is not law until
Congress goes through Article I’s rigorous process for
enacting laws.” Louis J. Capozzi III, The Past and
Future of the Major Questions Doctrine, 84 Ohio St.
L.J. 191, 235 (2023). And “the Constitution’s
procedure for enacting statutes, with its several veto
points, is biased toward inaction—or, rather, toward
action only where a fairly broad consensus supports
it.” Aaron Gordon, Nondelegation, 12 N.Y.U. J.L. &
Liberty 718, 801 (2019).
By contrast, legislative delegations have “the effect
of inverting the decision-making process: a legislative
rule will go into effect unless a sufficiently broad
consensus disapproves, whereas in the absence of
legislative delegation, such a rule would go into effect
only if an equally broad consensus approves.” Id. at
802. This “reverses the burden that the Constitution
places on those who want to expand the powers of
government by imposing a new law.” David
Schoenbrod, Delegation and Democracy: A Reply to My
Critics, 20 Cardozo L. Rev. 731, 739 (1999).
In addition, “[v]ague congressional delegations
undermine representative government because they
give unelected bureaucrats—rather than elected
representatives—the final say over matters that
affect the lives, liberty, and property of Americans.”
Pet. App. 25a. “By shifting responsibility to a less
accountable branch, Congress protects itself from
political censure—and deprives the people of the say
the framers intended them to have.” Tiger Lily, LLC
20
v. HUD, 5 F.4th 666, 674 (6th Cir. 2021) (Thapar, J.,
concurring). Further still, “the transfer of legislative
power to agencies dilutes voting rights.” Hamburger,
91 Geo. Wash. L. Rev. at 1181. Such power-transfers
are also slanted against disfavored groups. See id. at
1183–87. In short, “[d]elegation is never just about
delegation. It also is about rendering legislation
unrepresentative” and “diluting the value of equal
suffrage[.]” Id. at 1187; see Pet. App. 87a (Ho, J.,
concurring) (“There’s no point in voting if the real
power rests in the hands of unelected bureaucrats—
or their private delegates.”).
Even
worse,
unconstitutional
delegations
undermine
political
stability,
leading
to
“administratively induced irresponsibility, alienation,
and political conflict.” Hamburger, 91 Geo. Wash. L.
Rev. at 1192. This state of affairs “tends to infantilize
the Constitution’s elements of government,” “leaving
Americans with ever less confidence in government.”
Id. at 1193. It “deprives Americans of their sense of
connection to government,” leaving “growing numbers
of Americans, left and right, feel[ing] politically
alienated.” Id. at 1194.
Finally, delegation of legislative power to
administrative bodies contributes to political
polarization. See John O. McGinnis & Michael B.
Rappaport, Presidential Polarization, 83 Ohio St. L.J.
5, 7 (2022) (“Delegation by Congress probably has the
most pervasive polarizing effects.”). “The breadth of
centralized legislative power” housed within the
Executive branch today “displaces much state politics.
It also reaches deep into private institutions and life.”
Hamburger, 91 Geo. Wash. L. Rev. at 1195. This “not
only nationalizes American politics but also politicizes
21
American life,” turning Presidential elections into “door-die battles[.]” Id.
B. This
Court
Should
Jettison
“Intelligible Principle” Remark.
the
This Court should confront the root cause of these
serious constitutional problems: the modern,
judicially created intelligible-principle regime. “[T]he
standard this Court currently applies to determine
whether Congress has impermissibly delegated
legislative power largely abdicates [this Court’s] duty
to enforce that prohibition[.]” Allstates Refractory
Contractors, LLC v. Su, 144 S. Ct. 2490, 2490 (2024)
(Thomas, J., dissenting from denial of certiorari)
(cleaned up). The test is “notoriously lax,” Amy Coney
Barrett, Suspension and Delegation, 99 Cornell L.
Rev. 251, 318 (2014), and “has become a punchline,”
Consumers’ Rsch., 88 F.4th at 929 (Newsom, J.,
concurring). “[T]he nondelegation doctrine has been
more honored in the breach than in the observance.”
Rettig, 993 at 410 (Ho, J., dissenting from denial of
rehearing en banc), and “over the years, the
guardrails have crumbled,” Tiger Lily, 5 F.4th at 674
(Thapar, J., concurring). Today’s “nondelegation
doctrine serves as little more than an open gate for the
delegation of legislative power—even if the sign above
the gate declares the opposite.” Hamburger, 91 Geo.
Wash. L. Rev. at 1091. It is past time to close and
padlock it.
The “mutated version of the ‘intelligible principle’
remark” in J.W. Hampton, Jr., & Co. v. United States,
276 U.S. 394 (1928), that forms the basis of the
modern “intelligible principle” test “has no basis in the
original meaning of the Constitution, in history, or
22
even in the decision from which it was plucked.”
Gundy, 588 U.S. at 164 (Gorsuch, J., dissenting); see
Whitman, 531 U.S. at 487 (Thomas, J., concurring);
Ass’n of Am. R.R., 575 U.S. at 76 (Thomas, J.,
concurring in the judgment); Consumers’ Rsch., 88
F.4th at 928 (Newsom, J., concurring in judgment); id.
at 938 (Lagoa, J., concurring); Hamburger, 91 Geo.
Wash. L. Rev. at 1095 (“[T]he current nondelegation
doctrine has no originalist foundation.”).
This Court should clearly announce the end of this
failed experiment. Cf. Loper Bright, 603 U.S. at 412.
After all, “[a]lthough this Court since 1928 has treated
the ‘intelligible principle’ requirement as the only
constitutional limit on congressional grants of power
to administrative agencies, the Constitution does not
speak of ‘intelligible principles.’ Rather, it speaks in
much simpler terms: ‘All legislative Powers herein
granted shall be vested in a Congress.’” Whitman, 531
U.S. at 487 (Thomas, J., concurring) (quoting U.S.
Const. art. I, § 1). While the “doctrine long seemed
acceptable while the shift of legislative and judicial
powers to the executive was moderated by political
restraint,” “such restraint has been thrown to the
winds[.]” Hamburger, 91 Geo. Wash. L. Rev. at 1093.
C. Line-Drawing Questions Cannot Justify
Ignoring the Constitution’s Demands.
Nor should line-drawing challenges stand in the
way of enforcing the Constitution’s bar against
subdelegation of legislative power. “Strictly speaking,
there is no acceptable delegation of legislative power.”
Mistretta v. United States, 488 U.S. 361, 419–20
(1989) (Scalia, J., dissenting). This raises the question
23
what is “legislative power” that Congress may not
delegate.11
To be sure, “[t]he line has not been exactly drawn”
between “important subjects, which must be entirely
regulated by the legislature itself” and matters of “less
interest” that Congress can delegate to others “to fill
up the details.” Wayman, 23 U.S. (10 Wheat.) at 43;
see West Virginia, 597 U.S. at 737 (Gorsuch, J.,
concurring) (“Doubtless, what qualifies as an
important subject and what constitutes a detail may
be debated.”). And “the hard question is how to specify
clearly—at least, as clearly as possible—what power
the Congress can and cannot assign to others.” Ronald
A. Cass, Fixing Deference: Delegation, Discretion, and
Deference under Separated Powers, 17 NYU J.L. &
Liberty 1, 36 (2023). Indeed, “[i]t may never be
possible perfectly to distinguish between legislative
11 “When it came to the legislative power, the framers understood
it to mean the power to adopt generally applicable rules of
conduct governing future actions by private persons[.]” Gundy,
588 U.S. at 153 (Gorsuch, J., dissenting). As Hamilton put it,
“[t]he essence of the legislative authority is to enact laws, or, in
other words, to prescribe rules for the regulation of the society[.]”
Federalist No. 75. As an original matter, “formulation of
generally applicable rules of private conduct” “requires the
exercise of legislative power.” Ass’n of Am. R.R., 575 U.S. at 70
(Thomas, J., concurring in the judgment). “By that measure, the
FCC is almost certainly exercising legislative power when it
decides, among other things, how big the universal-service
program should be, what it should entail, and how much carriers
should have to chip in to bring it to fruition.” Consumers’ Rsch.,
88 F.4th at 930 (Newsom, J., concurring).
24
and executive power[.]” Ass’n of Am. R.R., 575 U.S. at
86 (Thomas, J., concurring).
“But the inherent difficulty of line-drawing is no
excuse for not enforcing the Constitution.” Id. at 61
(Alito, J., concurring); see id. at 86 (Thomas, J.,
concurring). Cf. Federalist 78 (Hamilton) (Courts
“duty it must be to declare all acts contrary to the
manifest tenor of the Constitution void.”). And “the
difficulty of the inquiry doesn’t mean it isn’t worth the
effort.” Nichols, 784 F.3d at 671 (Gorsuch, J.,
dissenting from denial of rehearing en banc). No
matter the difficulty of the task, the Judiciary is
dutybound to search for the line and could do so on a
case-by-case basis. And just as the Constitution bars
Congress from punting its legislative responsibilities
to other entities, this Court should not punt on its
“duty” “to say what the law is.”12 Marbury v. Madison,
5 U.S. (1 Cranch) 137, 177 (1803).
D. There
Are
Judicially
Manageable
Standards For Enforcing Nondelegation.
More than sufficient ink has been spilled to allow
this Court to begin to articulate judicially manageable
standards over time. See generally West Virginia, 597
U.S. at 750 n.11 (Gorsuch, J., concurring) (collecting
scholarship).
For
example,
surveying
the
jurisprudence and scholarship, Professor Cass has
identified three “essential elements” shaping the
nondelegation doctrine:
12 Under our Constitution the People have the last word. U.S.
Const. amend. V.
25
[F]irst, that Congress cannot pass to
others the power to make important
judgments on legally binding rules,
second, especially on matters respecting
the regulation of private rights rather
than of public property, and, third, that
grants of authority must fall within the
constitutionally assigned purview of the
delegate (must pertain to the exercise of
that delegate’s own power).
Cass, 17 NYU J.L. & Liberty at 43.13 And
“[d]evelopments in the modern administrative state
suggest the time has come to articulate judicially
manageable standards for identifying delegations of
legislative power.” Naomi Rao, Administrative
Collusion: How Delegation Diminishes the Collective
Congress, 90 N.Y. U. L. Rev. 1463, 1508 (2015).
To be sure, there may well be “multiple
nonexclusive” nondelegation principles. Larkin, 23
Federalist Soc’y Rev. at 263. And as in other areas of
constitutional law, judgment and nuance may be
required over a series of cases. But “[n]ot all rules
require judgments comparable to distinguishing a dog
This rubric draws from both the principle expressed in
Wayman, 23 U.S. 1, that Congress cannot delegate power to
decide important subjects and the principle that there are certain
types of power Congress cannot delegate, such as the power to
make general binding rules impacting private rights. See Cass,
17 NYU J.L. & Liberty at 38–44. “Viewed simply, the focus on
importance of a decision sets limits on what Congress can allow
others to do, while the focus on types of decision sets limits on
which others can do it as well as contributing to determination
of how broad or narrow their authority can be.” Id. at 40.
13
26
from a cat; some require, instead, the ability to
differentiate a boulder from a rock from a pebble—
matters of degree rather than of absolute differences
in nature.” Cass, 17 NYU J.L. & Liberty at 42.
The line for policing unconstitutional delegations
may be context specific. See Lawson, 88 Va. L. Rev. at
376; Pet. App. 33a. For example, as here, “the
Constitution’s original meaning would seem to compel
a more restrictive test for delegations of the taxing
power.” Pet. App. 42a n.13. But see Skinner v. MidAmerica Pipeline Co., 490 U.S. 212, 222–23 (1989).
This makes sense. After all, “the power to tax involves
the power to destroy,” McCulloch v. Maryland, 17 U.S.
(4 Wheat.) 316, 431 (1819), and “[a]mong Congress’s
most important authorities is its control of the purse,”
Nebraska, 600 U.S. at 505. And “if a citizen who is
taxed has the measure of the tax or the decision to
spend determined by the Executive alone, without
adequate control by the citizen’s Representatives in
Congress, liberty is threatened.” Clinton v. City of
N.Y., 524 U.S. 417, 451 (1998) (Kennedy, J.,
concurring). That may also hold true for other core
legislative functions, such as government spending.
“It’s [also] easy enough to see why a stricter
[nondelegation] rule would apply in the criminal
arena.” Nichols, 784 F.3d at 672 (Gorsuch, J.,
dissenting from denial of rehearing en banc)
(collecting cases). “Without a doubt, the framers’
concerns about the delegation of legislative power had
a great deal to do with the criminal law.” Id. at 670.
For that matter, Panama Refining, see 293 U.S. at
415, and Schechter, see 295 U.S. at 527–28, both
involved criminal delegations. Cf. United States v. L.
Cohen Grocery Co., 255 U.S. 81, 92–93 (1921) (striking
27
down vague criminal law in part because it
transferred legislative power to judges and juries).
In some contexts, the Commerce Clause’s original
public meaning may be another relevant background
principle providing additional guideposts.14 See, e.g.,
Schechter, 295 U.S. at 554 (Cardozo, J., concurring)
(noting Commerce Clause “objection, far-reaching and
incurable, aside from any defect of unlawful
delegation”). Cf. BST Holdings, L.L.C. v. OSHA, 17
F.4th 604, 619 (5th Cir. 2021) (Duncan, J.,
concurring). Federalism principles may also properly
inform the analysis. For example, where a statute
grants “authority to regulate an area—public health
and safety—traditionally regulated by the States,”
“lack of guidance” bounding an agency’s discretion
should be greeted skeptically.15 Allstates, 79 F.4th at
788 n.16 (Nalbandian, J., dissenting) (cleaned up). As
here, see Pet. App. 66a–67a, novelty may also indicate
a serious subdelegation problem. Cf. Seila Law, 591
U.S. at 220. These examples of additional markers
that might inform the constitutional inquiry are
illustrative, not exhaustive.
In sum, this Court is well equipped to begin to
articulate judicially manageable standards for
14 “Holding goals statutes that would regulate commerce or tax
to be improper delegations would serve the purpose of the
delegation doctrine.” David Schoenbrod, The Delegation
Doctrine: Could the Court Give It Substance, 83 Mich. L. Rev.
1223, 1254 (1985).
15 This Court has also struck down unconstitutional transfers of
exclusively federal legislative power to the States. See, e.g.,
Knickerbocker Ice Co. v. Stewart, 253 U.S. 149, 164 (1920).
28
enforcing Article I’s Vesting Clause on a case-by-case
basis. The time has come to start to do so. And
whatever the line, the USF is well over it. Cf. NFIB v.
Sebelius, 567 U.S. 519, 585 (2012) (“It is enough for
today that wherever that line may be, this statute is
surely beyond it.”). Section 254 is an unprecedented
delegation to unelected bureaucrats of sweeping
power to make important policy decisions impacting
private rights and fund those legislative choices by
imposing taxes at any rate they want.16 That is an
unconstitutional delegation under any test.
E. Enforcing Article I’s Vesting Clause Will
Have Salutary Effects.
The sky will not fall if this Court enforces the
Constitution’s demands. Common strawman critiques
advanced by proponents of the administrative state—
“Congress is incapable of acting quickly in response to
emergencies” and “modern society is too complex to be
run by legislators”—are constitutionally irrelevant
and, in any event, lack merit on their own terms. See
Tiger Lily, 5 F.4th at 674–75 (Thapar, J., concurring);
see also Gordon, 12 NYU J.L. & Liberty at 811–15.
Appeals to putative agency expertise to justify the
USF fall particularly flat because “determining the
ideal size of a welfare program involves policy
16 The combination theory the decision below relied on to find an
Article I violation, see Pet. App. 19a, 64a, also tracks this Court’s
delegation precedent. In Schechter the statute “delegated to
trade or industrial groups the authority to develop codes defining
‘unfair method[s] of competition,’” Pet. App. 44a (citing 295 U.S.
at 521), subject to presidential approval.
29
judgments, not technical ones.”17 Pet. App. 35a. Nor
would enforcing Article I have disruptive
consequences. After all, Congress is always free to
codify existing regulations through legislation. See,
e.g., Whitman, 531 U.S. at 472. “And as to the USF
particularly,
Congress
could
obviate
the
constitutional problem by simply ratifying USAC’s
decisions about how much American citizens should
contribute to the goal of universal service.” Pet. App.
80a. In any event, “[t]he assertion that delegations of
legislative power are necessary for effective and
efficient governance in the modern world does not
authorize Congress to violate Article I, Section I’s
vesting clause.”18 Pet. App. 83a (Elrod, J., concurring).
And “[i]f [the federal government] can’t do everything
it wants to do—such that it has to outsource
responsibilities to private parties—that may indicate
it’s trying to do too much.” Consumers’ Rsch., 88 F.4th
at 938 (Newsom, J., concurring).
Sketching out the contours of the Constitution’s
bar against subdelegation of legislative power would
For that matter, “the FCC relies on the determinations of
private industry leaders to determine the USF tax.” Pet. App.
83a (Elrod, J., concurring).
17
To the extent there are concerns with the practical
implications of returning to the Constitution’s original public
meaning, “[c]onsideration of stare decisis and reliance interests
may” counsel against abruptly “wip[ing] the slate clean.” United
States v. Lopez, 514 U.S. 549, 601 n.8 (1995) (Thomas, J.,
concurring). Cf. Loper Bright, 603 U.S. at 412 (granting statutory
stare decisis to specific agency actions upheld under Chevron).
But this is not that case. And this Court should begin to return
to the original understanding, even if only incrementally over a
series of cases.
18
30
also provide much-needed clarity as to the major
questions doctrine’s metes and bounds and conceptual
underpinnings. Cf. Paul v. United States, 140 S. Ct.
342, 342 (2019) (Kavanaugh, J., statement respecting
denial of certiorari); Gundy, 588 U.S. at 157–58
(Gorsuch, J., dissenting). See generally Randolph J.
May and Andrew K. Magloughlin, NFIB v. OSHA: A
Unified Separation of Powers Doctrine and Chevron’s
No Show, 74 S.C. L. Rev. 265 (2022). This would
answer a concern expressed by some that “the Court’s
failure to say anything about nondelegation creates
genuine conceptual uncertainty about what exactly it
was doing in these cases, a conceptual uncertainty
that will matter for future cases.” Mila Sohoni, The
Major Questions Quartet, 136 Harv. L. Rev. 262, 297
(2022). It would also provide Congress with muchneeded guidance on the universe of today’s important
subjects that cannot constitutionally be assigned
(clearly or otherwise) to administrative bodies. See
Wayman, 23 U.S. (10 Wheat.) at 43.
“The educational effect on Congress” of
invalidating the USF as an unconstitutional
subdelegation of legislative power “might well be
substantial.” Scalia, A Note on the Benzene Case,
supra, 28. This, too, would be a welcome development
for our constitutional Republic. For “[w]hen the
political institutions are not forced to exercise
constitutionally allocated powers and responsibilities,
those powers, like muscles not used, tend to atrophy.”
Plyler v. Doe, 457 U.S. 202, 253 (1982) (Burger, J.,
dissenting).
31
CONCLUSION
This Court should enforce Article I’s Vesting
Clause and affirm the decision below.
Respectfully submitted,
Michael Pepson
Counsel of Record
AMERICANS FOR PROSPERITY FOUNDATION
4201 Wilson Blvd., Ste. 1000
Arlington, VA 22203
(571) 329-4529
mpepson@afphq.org
Counsel for Amicus Curiae
February 18, 2025
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