In the October 2, 2025 edition of the ICORE Blog, we discussed actions by the FCC that addressed previous Commission rulings regarding Wi-Fi Hotspots and Wi-Fi on school buses and their eligibility for reimbursement through the E-Rate program. On September 30, 2025 the Commission adopted a Declaratory Ruling establishing that the provision of Wi-Fi, or other similar access point technologies including the equipment to provide such services on school buses is ineligible for E-Rate funding. In addition, on that date, the Commission adopted an Order on Reconsideration reversing the FCC’s July, 2024 Hotspots Order that authorized the provision of E-Rate support for the off-premises use of Wi-Fi hotspots and associated wireless internet services by students, school staff members, and library patrons. In doing so, the Commission concluded that it lacked the authority to expand the E-Rate program to fund hotspots that students, school staff, and library patrons could use outside of a school or library. In reaching these decisions the Commission essentially concluded that expanding the E-Rate program to include school buses and W-Fi hotspots was outside of its statutory authority and further its interpretation of section 254 does not provide for E-Rate funding for off-premises applications.
On November 18, 2025, the state of California and the California Public Utility Commission (CPUC) filed a Petition for Reconsideration (PFR) with the FCC regarding the Commission’s actions discussed above. The CPUC asks the Commission to reconsider the 9/25/25 Orders because they harm the public interest, particularly for students in rural and urban areas and exacerbate the Homework Gap and the digital divide. Further CPUC maintains that the Commissions actions were based on the faulty premise that section 254 does not allow for the support of off-premises applications through the E-Rate program. CPUC maintains that the Commission took an overly narrow view of its statutory authority under section 254 when it concluded that eligible E-Rate services are limited to only those services that are provided at the physical location of a school or library. In support of its position that the Commission’s authority under section 254 is not limited to on-site applications at schools and libraries, the CPUC discusses the Congress’ enactment of the Emergency Connectivity Fund (ECF) as part of the American Rescue Plan. The CPUC cites the plain language of Congress in enacting the ECF directing the Commission to support connectivity to “locations other than the school and locations other than the library” pursuant to its authority under section 254(h)(1)(b) of the Communications Act. Therefore, the CPUC opines, Congress found that the Commission’s existing authority allowed for the provision of support to “off-premises” locations. The CPUC provides statistical data supporting its claim that the Commission’s actions on 9/25/25 as discussed above will disproportionately affect students and families in low-income, rural, urban, and Tribal areas who rely on mobile Wi-Fi hotspots as their primary means of internet access. Finally, the CPUC recommends that the Commission reconsider its interpretation of section 254 in particular regarding off-premises support for Wi-Fi hotspots.
On December 19, 2025, NCTA, The Internet & Television Association, filed comments with the FCC in opposition to the CPUC PFR. NCTA states its concurrence with the Commission’s conclusions reached in the 9/25/25 Orders that the provision of E-Rate support for off-premises applications is outside the Commission’s statutory authority and therefore the CPUC PFR should be denied. Also, Reply comments in support of the CPUC PFR were filed by the American Library Association and the Schools, Health and Libraries Broadband Coalition.
This issue is now in the hands of the FCC to rule on the CPUC PFR. We’ll continue to monitor this issue and will provide updates as the situation unfolds.
