FCC to Vote to Reverse Hotspot and Bus Wi-Fi E-rate Eligibility

September 11, 2025

FCC Chairman, Brendan Carr, has proposed to overturn the E-rate eligibility of both school bus Wi-Fi and off-campus hotspots.  Specifically, he issued a statement on September 3, 2025 stating he has circulated for a vote a Declaratory Ruling that would overturn the FCC’s 2023 decision that made school-bus Wi-Fi and off-campus Wi-Fi equipment and services E-rate eligible, as well as an Order on Reconsideration that would reverse the FCC’s 2024 decision that made off-campus Wi-Fi hotspot equipment and service E-rate eligible.  The Chairman explained that he believes the FCC exceeded their statutory authority because Congress limited E-rate funding only to connections at schools and libraries.  Both measures are expected to pass.

You may recall that in May 2025, the U.S. Senate passed S.J.Res 7 to overturn the FCC’s decision to allow E-rate funding to be used for Wi-Fi hotspot lending by schools and libraries.  However, the measure did not pass the U.S. House. 

USAC has not been actively reviewing these FY 2025 applications.  When these measures pass, Carr’s statement explains that they will direct USAC to deny pending FY 2025 funding requests related to these services.  So far, there has been no mention of whether the FCC will attempt to claw-back FY 2024 school bus Wi-Fi funding, but I would be surprised if this happens.

In terms of FY 2026, I think it’s safe to assume that neither of these services will be eligible, despite their continued existence on the Form 470.

I will keep you updated as this issue develops.

— Julie

Julie Tritt Schell
Pennsylvania E-rate Coordinator
717-730-7133 – o
jtschell@comcast.net
www.e-ratepa.org