The U.S. Federal Communications Commission (FCC) plan to reduce or end the E-Rate program is facing opposition from schools, libraries, and educational and professional associations across the United States. The program typically provides more than $2 billion annually to reduce the cost of telecommunications services and equipment these institutions need to connect to the internet.
In June, Chairman Brendan Carr introduced a notice proposing new rules, following a 2-1 vote, seeking public comment on whether the program should be restricted or gradually ended on the grounds that current connectivity rates have expanded significantly compared with its original purpose: supporting basic internet access for educational purposes in schools and libraries.
Dispute Over the Program’s Role and the Commission’s Authority
The proposals could reduce the discounts provided to institutions, impose additional restrictions on the use of E-Rate funds, or eliminate the program entirely. Supporters of its continuation argue that widespread internet connectivity is not evidence that the need for funding has ended, but rather a direct result of the program’s success and schools’ and libraries’ continued reliance on updating, maintaining, and expanding the capacity of their networks.
The American Library Association said the program operates as Congress intended when it created it under the Telecommunications Act of 1996, and that the commission lacks the authority to end it because it is responsible for administering it, not eliminating it. The association also objected to the FCC’s involvement in regulating screen time or determining educational outcomes, arguing that decisions about content unsuitable for children fall within the jurisdiction of school boards and local educational institutions and libraries.
Examples of the Funding’s Impact
Local entities provided examples of their practical reliance on E-Rate. Paul Lapka, director of Rock Valley Christian School in Iowa, said the annual cost of internet service is estimated at about $3,120, while the program’s support amounts to about $1,560. He warned that reducing the support would increase local costs, delay network upgrades, and force the school to divert money from other priorities.
In Texas, the library association said that only 35% of public libraries currently receive E-Rate discounts, compared with 65% nationwide, and that only 55% meet the speed standards recommended by the commission. The New York Library Association said that ending or reducing the funding could force libraries in the state to cut programs and services to maintain internet access.
What Changes in Practice?
The current commission has already halted funding for schools’ and libraries’ lending of Wi-Fi hotspots, as well as Wi-Fi service on school buses. If E-Rate is eliminated, institutions will lose a major source of funding for broadband services and new equipment, while telecommunications companies that rely on continued purchases of these services could also be affected.
E-Rate and other programs under the Universal Service Fund are financed through fees imposed on telephone companies, which typically pass them on to consumers through their monthly bills. The first comment period has ended, and responses may be submitted until November 12. After that, Carr can propose a final plan to modify or eliminate the program, with any decision potentially facing a legal challenge because of the dispute over the limits of the FCC’s authority.