On September 30, 2025, in a 2-1 vote, the Federal Communications Commission (FCC) removed both school bus Wi-Fi and internet hotspot services from eligibility for federal E-rate funds. The move means schools and libraries will no longer be able to receive discounts on these services, as allowed under an E-rate expansion approved under the Biden administration. FCC Chairman Brendan Carr called for the vote to reverse the expansion earlier this month.
Noting a great need to use E-rate funds for school bus Wi-Fi and hotspots, schools and school districts requested $42.6 million to use E-rate funds for hotspots and $15.3 million for school bus Wi-Fi. Sadly, the commission’s vote now directs the Universal Service Administrative Company, which administers E-rate funds, to deny any pending funding requests for both services for FY 25, including the 2025-26 school year. It is expected that rural school districts will be especially affected by the FCC’s decision.
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