The Supreme Court announced Friday it will hear a case that could deliver another blow to federal agencies’ powers.

The justices agreed to take up the government’s appeal of a decision invalidating the Universal Service Fund (USF), a federal subsidy aimed at providing affordable telecommunications services to rural and low-income consumers. It spends about $9 billion annually.

A lower panel found the funding mechanism violates the nondelegation doctrine, which bars Congress from delegating its lawmaking powers to the executive branch.

Taking up the dispute enables the Supreme Court to address the scope of the constitutional doctrine after sidestepping it in recent cases. The court signaled it could do so again, however, as it asked the parties to also argue whether........

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