FCC opens review that could end school and library broadband subsidies

The Federal Communications Commission voted 2-1 to begin a rulemaking that could shrink or end E-Rate, the federal program that subsidizes Internet service and related equipment for schools and libraries. The proceeding puts a program that typically distributes more than $2 billion a year under formal review, with critics warning that cuts would hit low-income and rural communities.

FCC Chair Brendan Carr led the vote on a Notice of Proposed Rulemaking and said the agency should reassess E-Rate because students are spending too much time on screens. Carr said at the FCC meeting that school districts had increased student screen use over the past decade and that the program had grown beyond its original focus on basic Internet access for educational use.

The FCC’s draft proposal asks whether E-Rate should be limited or allowed to expire because schools and libraries now have far broader connectivity than they did when the program began. The draft says Congress created the program to address limited access to advanced telecommunications and Internet services, and asks whether continued funding still matches that original purpose.

E-Rate was authorized by Congress in the Telecommunications Act of 1996 and launched by the FCC in 1997. According to the FCC, the program provides discounts ranging from 20 percent to 90 percent for eligible services and equipment. Universal Service Administrative Co. data cited by program backers shows E-Rate usually distributes more than $2 billion annually, while the program has a funding cap of $5.2 billion.

The program is part of the Universal Service Fund, which is paid for through fees on phone companies. Those companies commonly pass the charges to customers on monthly bills.

Democratic commissioner objects

Commissioner Anna Gomez, the FCC’s only Democrat, opposed the rulemaking. A spokesperson for Gomez said she asked Carr’s office to remove language seeking comment on whether to sunset E-Rate, but the request was rejected.

Gomez said the proposal had been framed as an inquiry into screen time while raising options that could terminate the program or sharply narrow it. She said E-Rate helps children in low-income neighborhoods and rural areas get access to digital education, and argued that the FCC is overstepping by tying connectivity support to views about classroom technology use.

Gomez also said Congress had not asked the commission to revisit or narrow E-Rate. She said debates about screen time should be handled by families, educators, doctors and lawmakers rather than by the communications regulator.

Sen. Ed Markey, D-Mass., also criticized the proceeding, saying it goes beyond a review of student screen time and threatens educational equality and economic competitiveness. Markey said the FCC should strengthen E-Rate and work to close the digital divide.

Advocacy groups prepare fight

The vote is an early procedural step, but it can lead to a final FCC order within months. Opponents are expected to argue that the agency would exceed its authority from Congress if it tries to end or sharply reduce the program.

The Carr-led FCC had already cut E-Rate support for off-campus connectivity by ending funding for school and library Wi-Fi hotspot lending and for Wi-Fi service on school buses. Those earlier changes were backed by Sen. Ted Cruz, R-Texas, and criticized by advocates.

Joey Wender, executive director of the Schools, Health & Libraries Broadband Coalition, said the FCC should be asking how to strengthen E-Rate rather than whether to terminate it. The group launched a “Save our E-Rate” campaign urging people to contact elected officials and submit comments when the FCC opens the docket.

Public Knowledge broadband policy director Alisa Valentin said Carr is using political arguments to cast doubt on long-running Universal Service programs, including E-Rate and Lifeline. Revati Prasad, executive director of the Benton Institute for Broadband & Society, said E-Rate has connected more than 100,000 schools and 11,000 libraries to online services and educational resources.

This story draws on original reporting from Ars Technica.