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CITE24: E-Rate Expansion Faces Political Opposition

Policy experts at the California IT in Education conference last week said Republicans in control of Congress and the Federal Communications Commission may seek to revoke recent E-rate program expansions.

illustration of people standing on opposite sides of a gap, with one person holding a board to bridge it
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The Federal Communications Commission in recent years created new uses for the Universal Service Fund (USF) earmarked for telecommunications services, including a new pilot program to fund cybersecurity expenses in K-12 and the expansion of E-rate's broadband funds to include Wi-Fi hot spots on school buses and in student homes.

Some conservative politicians have said these programs reach beyond the intended use for those funds or do more harm than good. Heading into 2025, with Republicans gaining control of the U.S. House of Representatives, the Senate and the presidency, experts at the California IT in Education (CITE) conference last week said they expect the USF, and specifically E-rate, to face more changes.

In October 2023, FCC Chairwoman Jessica Rosenworcel argued in a public statement that Wi-Fi on school buses serves an educational purpose and is therefore eligible for E-rate funding. The decision to expand E-rate funds in that way was intended to give students the opportunity to work on educational activities on their commute to and from school, which, in some areas, is an hour long.

John Windhausen, executive director of the Schools, Health and Libraries Broadband (SHLB) Coalition, said at the CITE conference that Wi-Fi on school buses has also helped reduce behavioral issues, which has made it easier for schools to hire and retain bus drivers.
A man in a suit stands at a podium with a presentation screen behind him. The presentation focuses on the Federal Communications Commission funding for broadband in schools.
John Windhausen of the Schools, Health, and Libraries Broadband Coalition spoke at the CITE conference about how federal funding for broadband in schools may change soon.
Abby Sourwine
Republican members of Congress opposed the use.

“The law is clear: The commission’s E-rate authority is explicitly confined to classrooms and libraries,” Sen. Ted Cruz (R-Texas) and Rep. Cathy McMorris Rodgers (R-Wash.) wrote in a letter to FCC Commissioner Anna Gomez. “Congress has continuously maintained the structure of the E-rate program as originally established and deliberately limited its scope to school classrooms and libraries. The commission has no authority to expand this scope without congressional direction.”

Windhausen and the SHLB Coalition disagreed, saying that school buses are school facilities.

Additionally, lawsuits in different federal court systems have provided different rulings on the constitutionality of the funding.

In July 2024, the FCC allowed E-rate funding to go toward take-home hot spots for students without Internet access. This decision has been similarly scrutinized by Republican lawmakers.

In January, FCC Chairwoman Jessica Rosenworcel, who is a Democrat, will pass her position to Brendan Carr, who is a Republican, as is customary when elections flip the party in power. Carr, a commissioner, dissented from the FCC's decisions to allow E-rate funding for school bus Wi-Fi and for hot spot lending. When he takes over, the five commissioners who run the FCC will likely flip in majority, with three Republicans and two Democrats. This could make removing the use of E-rate funding for school bus Wi-Fi easier than going through federal courts.

Outside of the FCC, as Republicans take the majority of the House and the Senate, some proposed legislation impacting E-rate funding may have higher odds of passing, Windhausen said. For example, Sen. Cruz has championed the Eyes on the Board Act, which would require schools to restrict social media access on networks supported by E-rate funding, which includes the hot spots.

Windhausen said the SHLB Coalition will need to change its advocacy strategies to be more defensive in light of these changes.

"Unfortunately, we are probably going to have to be taking the approach of, 'Let's stabilize things,'" he said. "This is not going to be an opportunity where we can ask for E-rate to cover a lot more activities. We're probably going to have to take a more conservative path of saying, 'Let's keep what we've got. Let's not try to overturn these good decisions by the FCC.'"

For schools that rely on these Wi-Fi programs, Windhausen encouraged applying for E-rate as quickly as possible to secure funding before the policy changes.
Abby Sourwine is a staff writer for the Center for Digital Education. She has a bachelor's degree in journalism from the University of Oregon and worked in local news before joining the e.Republic team. She is currently located in San Diego, California.