Supreme Court Rules E-Rate Reimbursement Requests Are "Claims" Under The False Claims Act

On February 21, 2025, the Supreme Court unanimously held that requests for reimbursement from a privately administered fund qualified as "claims" under the False Claims Act (FCA) because the government "provide[d]" a "portion" of the fund's money.¹ This alert summarizes the decision in Wisconsin Bell, Inc. v. United States ex rel. Heath and its potential implications for other public-private programs.

Summary of the Opinion

The case involved the Education-Rate (E-Rate) program, which was established under the Telecommunications Act of 1996 to subsidize internet and telecommunications services for schools and libraries across the United States.² Under the program, telecommunications carriers pay into a fund managed by a private not-for-profit corporation, which collects and distributes money pursuant to regulations by the Federal Communications Commission. Those regulations include the "lowest corresponding price" rule, which prohibits carriers from charging