On September 30, 2025, The Federal Communications Commission (FCC) voted to restrict the use of E-rate funds, effectively ending support for Wi-Fi hotspot and Bus Wi-Fi services. In the decision, the Commission clarified that providing Wi-Fi or similar access point technologies outside of traditional school and library buildings does not fall within the scope of the E-rate program.
The E-rate program, established in 1996, helps schools and libraries obtain affordable broadband by subsidizing internet access and internal connections. While the program has traditionally focused on connectivity within buildings, some districts and libraries also used E-rate support to fund off-campus options, including lending Wi-Fi hotspots and installing Wi-Fi on school buses.
During the COVID-19 pandemic, temporary federal relief programs like the Emergency Connectivity Fund (ECF) expanded support to hotspots, devices, and bus-based Wi-Fi in recognition of the “homework gap” faced by millions of students lacking reliable internet access outside of school. Many districts used these funds to keep students connected in rural or low-income areas.
The Commission grounded its decision in section 254 of the Communications Act of 1934, as amended, which sets the statutory limits for universal service support. In a Declaratory Ruling (WC Docket No. 13-184), the FCC clarified that E-rate eligibility must align with those statutory limits, making school bus Wi-Fi ineligible. In a related action, through an Order on Reconsideration (WC Docket No. 21-31), the Commission determined that section 254 does not authorize E-rate funding for off-premises Wi-Fi hotspots or internet services. Together, these rulings formally remove both services from the program.
As a result, the scope of E-rate is now more narrowly defined. Support will continue for broadband infrastructure and services provided on school and library premises, but off-campus connectivity programs will no longer be eligible for funding under the program. Applicants that relied on E-rate to sustain hotspot lending or bus Wi-Fi initiatives will need to identify new resources to continue offering those services.
How Funds For Learning Can Help
Funds For Learning remains committed to supporting schools and libraries adapt to these shifts in policy. As the E-rate landscape continues to evolve, our team is here to provide guidance, answer questions, and help applicants maximize the benefits of the program. Whether it’s navigating new rules, developing funding strategies, or planning for the future, we are dedicated to ensuring our clients have the resources and insights they need to succeed.
