Two FCC Commissioners released statements last week dealing with the future of E-Rate eligibility for hotspots and school bus Wi-Fi. The headlines and contents of the releases could not have been more different. FCC Chairman Brendan Carr, apparently representing the view of his Republican counterpart Olivia Trusty as well, headlined his release “Carr Proposals Would End FCC’s Unlawful Biden-Era Expansion of Covid Spending Program.” A countering release for the Democratic side of the Commission was entitled “Commissioner Gomez on FCC Proposals to Rip Away Connectivity for Students and Seniors.”
At issue here is the E-Rate eligibility of hotspots to provide at-home internet services for students and library patrons and of Wi-Fi services to provide on-the-go internet services to students on school buses. Bus Wi-Fi services became E-Rate eligible in FY 2024; hotspots became — or were to become — eligible in FY 2025. The eligibility of both services was initiated under the previous Administration when, at the time, the three Democratic Commissioners outvoted the two Republican Commissioners 3:2. The current FCC Chairman, Brendan Carr, had been an outspoken critic of both services. But he now leads a rebalanced, 2:1, Republican dominated Commission.
Under the current Eligible Services List for FY 2025, both hotspots and bus Wi-Fi are technically E-Rate eligible this year. Presumably reflecting guidance from the FCC, however, USAC has not approved a single FY 2025 funding request for either service.
What is expected to happen next, in short order, is that the Republican-controlled FCC will vote on — and approve — the following two measures:
- A declaratory ruling “that funding Wi-Fi on school buses both exceeds the FCC’s statutory authority and does not promote sound policy choices.”
- An order on reconsideration finding “that the FCC lacked legal authority for this [hotspot] expansion and that the agency failed to properly justify its decision.”
If — or more accurately “when” — these measures are approved, both services will become ineligible for E-Rate support. At this point, the FCC plans to direct USAC “to deny pending funding year 2025 requests for E-Rate funding for the off-premises use of Wi-Fi hotspots and Wi‑Fi on school buses.”