On September 3, 2025, the FCC put forward a proposal to officially declare that Wi-Fi hotspots and Wi-Fi on school buses will no longer qualify for E-rate funding. If adopted, the ruling will reverse previous decisions that allowed federal funds for off-premises internet access for students and library patrons.
Chairman Brendan Carr and Senator Ted Cruz argue these services exceed the FCC’s legal authority and pose risks such as unsupervised screen time for children. If adopted, the Universal Service Administrative Company (USAC) will be directed to deny all pending FY2025 requests for these services.
The full FCC Chair’s proposal can be viewed here.