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Supreme Court to hear a new challenge to the scope of federal agency power [CNBC]
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program that requires companies to subsidize telecommunications services in underserved areas. The case marks the latest opportunity for business interests to hobble regulators at a court with a 6-3 conservative majority sympathetic to their arguments. The court left open the possibility of sidestepping a ruling in the case by asking the lawyers to argue whether the legal dispute might be moot. The broader legal principle at issue in the case is whether Congress delegated too much authority to the FCC to determine how much companies should pay in subsidies, a sum that is now in the billions of dollars. The court could embrace what is known as the “nondelegation doctrine.” The theory — for which conservative justices have indicated support without fully embracing it — would restrict the ability of Congress to pass open-ended laws that give considerable leeway to agencies. If the court were to rule against the FCC, it could open up other long-standing practices to court review o
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