A network of conservative legal groups, funded by undisclosed millions, is urging the Supreme Court to limit federal agencies' power to protect consumers and impose necessary fees on companies. If successful, this could weaken regulatory oversight, potentially allowing corporations greater freedom to harm the environment and exploit consumers. The case centers on FCC v. Consumers’ Research, which questions whether federal agencies can still perform essential tasks like rulemaking. Leonard Leo, a key architect of the Supreme Court's conservative majority, has ties to many of these groups through Donors Trust, a nonprofit described as a "dark money ATM." This funding surge coincides with efforts by Democratic lawmakers to mandate transparency in amicus brief funding.

Conservative Groups Seek to Restrict Federal Regulatory Power

In the heart of a contentious legal battle, the Supreme Court will soon deliberate over FCC v. Consumers’ Research. This pivotal case involves the Universal Service Fund, a mechanism established by the Federal Communications Commission (FCC) to support rural infrastructure development. On one side stands Consumers’ Research, a nonprofit originally founded to safeguard consumer interests but now advocating for conservative causes. Backed by significant undisclosed funding from sources linked to Leonard Leo, Consumers’ Research argues that it is unconstitutional for Congress to delegate fee structures and collections to federal agencies. In June, the Fifth Circuit Court of Appeals sided with them, labeling the fund a "misbegotten tax." Now, the FCC seeks to overturn this decision, arguing for the constitutionality of the fund.

Thirteen prominent conservative legal organizations have filed amicus briefs supporting Consumers’ Research. These groups, all recipients of substantial funds from Donors Trust, argue for strict limitations on Congress' ability to delegate governing functions, known as the "nondelegation doctrine." They claim that reviving this doctrine would align with constitutional principles, despite critics warning it could cripple vital agency functions. Among these groups are Americans for Prosperity, Foundation for Government Accountability, and Competitive Enterprise Institute, each also funded by the Koch Network. Their collective influence underscores a broader movement to diminish federal oversight and regulatory capabilities.

From 2022 to 2024, the Universal Service Fund significantly benefited West Virginia, providing over $44 million for broadband services in schools and libraries, enhancing healthcare provider connectivity, and supporting high-speed internet in rural areas. Yet, Republican state attorneys general, led by West Virginia’s attorney general, advocate against the fund, asserting that only Congress should manage such financial allocations.

The implications of this case extend beyond telecommunications, potentially affecting regulations across various sectors. Previous Supreme Court rulings, such as Loper Bright Enterprises v. Raimondo and Corner Post v. Board of Governors, already curtailed federal regulatory powers. Public Citizen warns that a ruling favoring Consumers’ Research could severely impact numerous statutory schemes, undermining executive authority in areas like natural gas pricing and product safety regulation.

Perspective on the Impact of Dark Money in Judicial Proceedings

This case exemplifies the growing influence of dark money in shaping judicial outcomes. The surge in amicus brief filings, often funded by untraceable donations, raises concerns about transparency and integrity in the legal process. As powerful interest groups increasingly use these briefs to sway court decisions, the need for disclosure becomes paramount. The involvement of figures like Leonard Leo, with deep ties to justices hearing the case, further complicates matters, calling into question the impartiality and ethical standards of the judiciary. Ultimately, this case serves as a stark reminder of the importance of maintaining transparency and accountability in our justice system to preserve public trust and uphold democratic principles.