E-rate/Schools and Libraries Program

Where are we in terms of closing the seven gaps that we think of, or should think of, as the elements of the digital divide? The seven gaps are the rural access gap, the affordability gap, the operating gap of very high-cost rural providers, the adoption gap, the institutional gap, the cable/copper gap, and the utilization gap. We could be using the network to improve outcomes in education, health care, government services, public safety, carbon reduction, civic engagement, and other public purposes. But to do achieve those goals, we need to close all seven broadband gaps.

The Federal Communications Commission initiated a proceeding to address the ongoing remote learning needs of today’s students, school staff, and library patrons through the E-Rate program and to ensure the millions who have benefitted from the Emergency Connectivity Fund (ECF) do not fall back onto the wrong side of the digital divide once the program ends. Specifically, the FCC proposes to permit eligible schools and libraries to receive E-Rate support for Wi-Fi hotspots and wireless Internet services that can be used off-premises.

The Federal Communications Commission will allow E-Rate funding to be used for Wi-Fi on school buses beginning in funding year 2024 as the Emergency Connectivity Fund (ECF) program is set to sunset. The action enhances the benefits and the reach of the E-Rate program to ensure that the millions of students caught in the Homework Gap can more fully engage in their learning. The action clarifies that the use of Wi-Fi, or other similar access point technologies, on school buses serves an educational purpose and the provision of such service is therefore eligible for E-Rate funding.

While the proposal I made to restore net neutrality will certainly garner the most attention, the Federal Communications Commission's October agenda features many other actions to promote digital equity and support broadband-powered innovation:

We write to express our strong opposition to a plan circulated by Chairwoman Jessica Rosenworcel to expand the Federal Communication Commission’s (FCC or the Commission) E-Rate program. This plan would not only violate federal law but also duplicate programs across the federal government, directly contradicting FCC commissioners’ repeated commitments to streamlining federal broadband funding.

There have been several lawsuits over the last few years that challenge the legitimacy of the Federal Communications Commission's Universal Service Fund (USF). A suit from a non-profit group called Consumers’ Research argues that USF fees are taxes and that the original creation of the USF was unconstitutional since the Telecommunications Act of 1996 gave the FCC the power to levy taxes.

According to the Federal Communications Commission (FCC), 8.3 million households lack access to high-speed broadband. Providing universal access to communications service—initially voice service and now broadband—has always been a challenge in the United States. Although connecting urban, populated areas is relatively easy, serving sparsely populated rural areas is difficult due to differences in terrain and population density.

Two broad proposals have been advanced to modernize the Universal Service Fund's contributions system: 1) expanding the contribution base to include revenues from broadband internet access service, and 2) broadening the USF contribution base to include entities including edge providers such as streaming video providers, digital advertising firms, and cloud services companies. The most economically efficient option for reform is to expand the contribution base to include broadband internet access service revenues.

The  Universal Service Administrative Company (USAC) submitted projections of demand and administrative expenses for federal universal service support mechanisms for the fourth quarter of 2023. The Federal Communications Commission's Wireline Competition Bureau, in consultation with the FCC's Office of Managing Director, previously directed USAC to carry forward up to $211.50 million in unused funds from prior funding years to the extent necessary to satisfy funding year 2023 Rural Health Care program demand.

The Congressional directive in the Telecommunications Act of 1996 is for the Federal Communications Commission (FCC) to ensure that there be specific, predictable, and sufficient Federal and State mechanisms to preserve and advance universal service. The dilemma is that the source of Universal Service Fund (USF) programs is end user (i.e. retail) revenues from international and interstate wireline and mobile services, as well as revenue from providers of interconnected Voice over Internet Protocol (VoIP) services.