Wisconsin Bell, Inc. v. United States ex rel. Heath

604 U.S. 140
CourtSupreme Court of the United States
DecidedFebruary 21, 2025
Docket23-1127
StatusPublished

This text of 604 U.S. 140 (Wisconsin Bell, Inc. v. United States ex rel. Heath) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wisconsin Bell, Inc. v. United States ex rel. Heath, 604 U.S. 140 (2025).

Opinion

PRELIMINARY PRINT

Volume 604 U. S. Part 1 Pages 140–167

OFFICIAL REPORTS OF

THE SUPREME COURT February 21, 2025

REBECCA A. WOMELDORF reporter of decisions

NOTICE: This preliminary print is subject to formal revision before the bound volume is published. Users are requested to notify the Reporter of Decisions, Supreme Court of the United States, Washington, D. C. 20543, pio@supremecourt.gov, of any typographical or other formal errors. 140 OCTOBER TERM, 2024

Syllabus

WISCONSIN BELL, INC. v. UNITED STATES ex rel. HEATH

certiorari to the united states court of appeals for the seventh circuit No. 23–1127. Argued November 4, 2024—Decided February 21, 2025 The E-Rate (short for Education-Rate) program, established under the Telecommunications Act of 1996, subsidizes internet and other telecom- munications services for schools and libraries across the United States. To fnance those subsidies, Congress required that telecommunications carriers pay into a fund (now known as the Universal Service Fund) that is administered by the Universal Service Administrative Company, a private not-for-proft corporation. The Company collects and distrib- utes the resulting pot of money to benefciaries pursuant to regulations prescribed by the Federal Communications Commission (FCC). In ad- dition to providing for subsidies, those regulations impose upon carriers a rule called the “lowest corresponding price” rule, which prohibits them from charging schools and libraries more than what they would charge a “similarly situated” non-residential customer. Once an appro- priate charge is set, a school can obtain its subsidy by paying the carrier a discounted price and requiring the carrier to seek the remainder from the Fund, or by paying the carrier full freight and then applying for reimbursement from the Fund. Respondent Todd Heath is an auditor of telecommunications bills who believes that petitioner Wisconsin Bell defrauded the E-Rate program out of millions of dollars. According to Heath, Wisconsin Bell consist- ently overcharged schools in violation of the “lowest corresponding price” rule. Heath brought suit under the False Claims Act (FCA), which enables private parties to bring civil actions on the Government's behalf to protect federal programs and funds from fraud. The FCA imposes civil liability on any person who “knowingly presents, or causes to be presented, a false or fraudulent claim” as statutorily defned. 31 U. S. C. § 3729(a)(1)(A). In Heath's view, Wisconsin Bell's violations of the “lowest corresponding price” rule led to reimbursement requests for amounts higher than the E-Rate program should have paid. The premise of Heath's suit is that an E-Rate reimbursement request can give rise to FCA liability because it qualifes as a “claim,” which, as relevant here, requires the Government to “provide[ ] or ha[ve] provided any portion of the money” requested. § 3729(b)(2)(A)(ii)(I). Cite as: 604 U. S. 140 (2025) 141

Wisconsin Bell moved to dismiss Heath's suit. In its view, an E-rate reimbursement request can never qualify as a “claim” under the FCA because the money comes from private carriers and is handled by a private corporation, meaning the Government does not “provide[ ] any portion of the money” requested. The District Court and the Seventh Circuit rejected that argument. The Court of Appeals held that the Government “provided” E-Rate program funding for two independent reasons. First, it held that the Government provided all the money in the program through its regulatory role in the collection and distribu- tion of contributions. Second and more narrowly, it found that the Gov- ernment provided some “portion” of E-Rate funding by depositing into the Fund, in the relevant years, more than $100 million directly from the U. S. Treasury. Held: The E-Rate reimbursement requests at issue are “claims” under the FCA because the Government “provided” (at a minimum) a “portion” of the money applied for by transferring more than $100 million from the Treasury into the Fund. § 3729(b)(2)(A)(ii)(I). The question is whether the Government “provided”—in ordinary meaning, supplied, furnished, or made available—any portion of the money sought. While the parties (mirroring the Seventh Circuit's opinion) discuss two inde- pendent theories under which the Government potentially “provided” the requested funds, here it is enough that the Government provided some E-Rate moneys through the Treasury's own transfer of over $100 million into the Fund. That amount consisted of delinquent contribu- tions that the FCC and Treasury Department collected from carriers, as well as civil settlements and criminal restitution payments from Justice Department activities in response to wrongdoing in the E-Rate pro- gram. The Government therefore “provided [a] portion of the money” disbursed from the Fund to reimburse E-Rate program participants. Wisconsin Bell argues that even the $100 million was provided only by the carriers, with the Government playing no more than an interme- diary role. But to start with, Wisconsin Bell mischaracterizes the Gov- ernment's role. Rather than acting as a passive throughway for the transmission of the $100 million, it generated that money itself by ex- tracting it from carriers and by prosecuting wrongdoing in the E-Rate program. And anyway, a simple intermediary can sometimes also “pro- vide” things to a recipient—and the Government, even if viewed only in that light, would do so here. For example, a proctor for an exam “provides” blue books and pencils to students, even if she has not pur- chased them herself and has instead gotten them from the school. The same is true here: The Government “provided” the relevant $100 million to the Fund by collecting it and routing it through Treasury accounts. 142 WISCONSIN BELL, INC. v. UNITED STATES ex rel. HEATH Syllabus

Here, in the years relevant to Heath's FCA suit, the Government “provided” a “portion of the money requested” for E-Rate subsidies by collecting, holding, and transferring $100 million by way of the Treasury. Indeed, those transfers look like most Government spending: Money usually comes to the Government from private parties, and it then usu- ally goes out to the broader community to fund programs and activities. That conclusion is enough to enable Heath's FCA suit to proceed. Pp. 148–155. 92 F. 4th 654, affrmed and remanded.

Kagan, J., delivered the opinion for a unanimous Court. Thomas, J., fled a concurring opinion, in which Kavanaugh, J., joined, and in which Alito, J., joined as to Part I, post, p. 155. Kavanaugh, J., fled a concur- ring opinion, in which Thomas, J., joined, post, p. 167.

Allyson N. Ho argued the cause for petitioner. With her on the briefs were Helgi C. Walker, Andrew LeGrand, Ash- ley E. Johnson, Stephen J. Hammer, and Patrick J. Fuster. Tejinder Singh argued the cause for respondent. With him on the brief were David J. Chizewer, Roger A. Lewis, and Harleen Kaur. Vivek Suri argued the cause for the United States as ami- cus curiae urging affrmance. With him on the brief were Solicitor General Prelogar, Principal Deputy Assistant At- torney General Boynton, Deputy Solicitor General Stewart, Michael S. Raab, Charles W. Scarborough, and Kevin J. Kennedy.*

*Briefs of amici curiae urging reversal were fled for the Center for Constitutional Responsibility by Steven P. Lehotsky, Andrew B. Davis, and Karen R. Harned; for the Chamber of Commerce of the United States of America by John P. Elwood and Andrew R. Varcoe; for the DRI–Center for Law and Public Policy by Mary Massaron; for USTelecom–The Broad- band Association et al. by Scott H.

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Wisconsin Bell, Inc. v. United States ex rel. Heath
604 U.S. 140 (Supreme Court, 2025)

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Bluebook (online)
604 U.S. 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wisconsin-bell-inc-v-united-states-ex-rel-heath-scotus-2025.