In the September 9, 2024, issue of the ICORE Blog we discussed a July 2024 FCC Report and Order (Order) establishing rules allowing the use of E-Rate funds for Wi-Fi hotspots. As a result of the Order, schools and libraries can utilize E-Rate funds to purchase and loan out Wi-Fi hotspots which will provide internet access to students and library patrons who lack reliable home-based internet access. A Wi-Fi hotspot is a wireless device that provides connections of phones, tablets, computers and other devices to the internet. The new rules established by the Order permit eligible schools and libraries to request E-Rate funding for Wi-Fi hotspots that can be used off-premises so that students, school staff, and library patrons can be connected to the internet. In 2023, the FCC had previously authorized the use of E-Rate funds for Wi-Fi on school buses.
On September 3, 2025, FCC Chairman Brendan Carr asked his fellow Commissioners to vote on two rulings that would reverse the FCC’s previous rulings described above regarding Wi-Fi hotspots and Wi-Fi use on school buses. In a statement, Chairman Carr stated that these prior FCC decisions plainly exceeded the FCC’s authority which Congress limited to funding connections at schools and libraries and failed to demonstrate that these funding decisions would advance legitimate classroom or library purposes. Specifically, Chairman Carr circulated a Declaratory Ruling that would reverse the FCC’s 2023 School Bus Declaratory Ruling which provided E-Rate support for school bus Wi-Fi funding finding that this support exceeds the FCC’s authority and does not promote sound policy choices. The second item on circulation is an Order on Reconsideration finding that in regard the July 2024 Wi-Fi hotspot Order, the FCC lacked legal authority to expand E-Rate support for this purpose and failed to properly justify its decision.
In response to Chairman Carr’s circulation of the two items discussed above, FCC Commissioner Gomez expressed her concerns with the proposed actions by the FCC. Commissioner Gomez, in her statement, points to the fact that millions of students and seniors rely on hotspots and school bus Wi-Fi for homework and telehealth and the two proposed actions will strip away connectivity without making broadband service more affordable. Further, she stated that the proposed actions would widen the gap between those with access to modern-day broadband and those without.
Conversely, Senator Ted Cruz applauded Chairman Carr’s proposed actions stating that these proposals protect both taxpayers and parents’ ability to decide what their children can access online. He urged Congress to step up and codify the changes proposed in the two items on circulation. In May 2025 the Senate passed the Congressional Review Act resolution overturning the 2024 hotspot rule and he urged the U.S. House of Representatives to now act on the resolution.
It’s unclear at this time when the Commission will vote on Chairman Carr’s proposals but given the current make-up of the three member FCC Commissioner’s panel it is likely that the proposed rulings will be approved. We will continue to monitor this issue and will provide updates as more information becomes available.
