In this issue of the ICORE Blog, we provide updates on two important issues recently addressed on this site:
In the October 23, 2026 edition of the ICORE Blog, we provided information regarding a NPRM/FNPRM adopted by the Commission to examine the E-Rate Program. The NPRM sought comments on steps to ensure that the program is advancing learning outcomes and also on proposals to better protect the on-line safety of children when using E-Rate funded networks and services. In addition, while citing the substantial expansion of broadband access in schools and libraries, the NPRM sought input as to whether the E-Rate Program should be narrowed, reoriented, or even whether the E-Rate Program should be continued. As discussed in the 10/23/26 ICORE Blog, comments have been filed in response to the NPRM and advocates for Rural ILECs, while recommending improvements to the E-Rate Program, have urged the Commission to continue the Program citing evolving technology needs and the need to continue to ensure affordable connectivity for schools and libraries particularly in rural areas.
In a related matter, on October 13, 2026, the U.S. Senate Commerce Committee released a report on the E-Rate Program. The report references the FCC NPRM discussed above and also addressed the high level of broadband capability that exists today for schools and libraries and the significant decline in the cost of internet access. Given these assertions, the report questions why the Program has grown more complex and more consultant-driven while continuing to be vulnerable to waste, fraud, and abuse. The report poses the question, “if near-universal connectivity has been achieved, is the E-Rate Program in its current form addressing today’s need or sustaining a system built for a bygone era?” The report urges the FCC to simplify program rules to reduce the reliance on consultants and require public disclosure of consultant compensation associated with the E-Rate Program. In addition, the report recommends that further expansion of the E-Rate Program be stopped, including pilot programs, until the programs core vulnerabilities are addressed. Regarding conflicts of interest, the report recommends changes to USAC’s Board of Directors to prohibit individuals and entities that have a direct financial incentive in USF programs from serving on the Board. Congressional action is also recommended by the report. Congress is urged to reexamine the schools and libraries provisions of the Telecommunications Act of 1996 to reflect today’s connectivity environment and questions the rationale for maintaining a large and permanent subsidy particularly as the USF contribution factor continues to rise. In addition, it is recommended that Congress consider bringing USF funding into the annual appropriations process in order to strengthen Congressional oversight.
In addition to the Senate report discussed above, on October 15, 2026, a large contingent of Democratic members of the U.S. Senate and the U.S House of Representatives sent a letter to FCC Chairman Carr asking that the Commission withdraw its proposal (the NPRM) to eliminate the E-Rate program, restrict eligibility based on geography, or otherwise weaken support for schools and libraries. The letter asserts that ending or sharply curtailing E-Rate support would impose severe costs on schools and libraries while weakening economic growth, undermining American technological leadership, and jeopardizing national security. The Commission is urged to abandon its proposals and preserve E-Rate as the universal program that Congress intended. Further the letter states that E-Rate is not a legacy program whose work is finished and the Commission should not use child safety as a pretext to dismantle the secure, managed broadband infrastructure that schools and libraries need to educate students and help them navigate the digital world safely.
Reply Comments in the NPRM are due November 12, 2026. The FCC has much to consider regarding this matter considering the significant level of comments filed in the NPRM as well Congressional input.
In the October 20, 2026 edition of the ICORE Blog we reported that the U.S. Court of Appeals for the 5th Circuit issued a decision regarding the USF contribution factor for the 4th quarter of 2025 and USAC’s role in the process. The Court ruled that Congress never authorized the FCC to establish USAC and further that the FCC violated the Government Corporation Control Act (GCCA) by creating USAC. The Court vacated the 4th quarter contribution factor and remanded the issue to the FCC for further proceedings. As of this writing, the FCC has not announced what actions it intends to take in response to the 5th Circuit’s ruling. The FCC could file for a rehearing by the 5th Circuit or seek Supreme Court review. In either case, it’s likely that the FCC would seek a stay of the 5th Circuit’s decision. In addition, the FCC could seek Congressional action authorizing USAC consistent with the GCCA.
We will continue to follow these important issues and will provide updates as more information becomes available.
