Blumenthal pointed out that under a joint resolution of disapproval, the FCC is forbidden to adopt a similar rule in the future. “I have to ask, really? Are schools and teachers crying out to repeal this rule? Really? No, they are not. How does this proposal make any sense for them or for families? For the parents? For the community? It makes no sense,” Blumenthal said.
Sen. Edward Markey (D-Mass.) called the Republican move “a cruel and shortsighted decision that will widen the digital divide and rob kids of the tools they need to succeed.”
FCC’s new chair opposed lending program
The FCC previously distributed Wi-Fi hotspots and other Internet access technology through the Emergency Connectivity Fund (ECF) that was authorized by Congress in 2021. After that program was axed last year, the FCC responded by adapting E-Rate to include hotspot lending.
FCC Chairman Brendan Carr, who was elevated to the agency’s top spot by Trump in January, voted against the program last year. Carr said in his dissent that only Congress could decide whether to revive the hotspot lending.
“Now that the ECF program has expired, its future is up to Congress,” he said at the time. “The legislative branch retains the power to decide whether to continue funding this Wi-Fi loaner program—or not. But Congress has made clear that the FCC’s authority to fund this initiative is over.”
Overall E-Rate funding is based on demand and capped at $4.94 billion per year. Actual spending for E-Rate in 2023 was $2.48 billion. E-Rate and other Universal Service Fund programs are paid for through fees imposed on phone companies, which generally pass the cost on to consumers.
The House version of the measure to kill the lending program was introduced by Rep. Russ Fulcher (R-Idaho). “E-Rate was designed to ensure schools and libraries have the connectivity they need to educate and serve their communities, not to create a backdoor entitlement program that stretches beyond the law’s clear boundaries,” Fulcher said in February when he filed the resolution. “The FCC cannot be allowed to unilaterally interpret the law in a way that fits their political agenda. The expansion of this program under the Biden administration was a blatant example of overreach that is not only unlawful but also disregards congressional intent.”
