FCC chair teams up with Ted Cruz to block Wi-Fi hotspots for schoolkids

"Chairman Carr's moves today are very unfortunate as they further signal that the Commission is no longer prioritizing closing the digital divide," Schwartzman said. "In the 21st Century, education doesn't stop when a student leaves school and today's actions could lead to many students having a tougher time completing homework assignments because their families lack Internet access."

Biden FCC expanded school and library program

Under then-Chairwoman Jessica Rosenworcel, the FCC expanded its E-Rate program in 2024 to let schools and libraries use Universal Service funding to lend out Wi-Fi hotspots and services that could be used off-premises. The FCC previously distributed Wi-Fi hotspots and other Internet access technology under pandemic-related spending authorized by Congress in 2021, but that program ended. The new hotspot lending program was supposed to begin this year.

Carr argues that when the Congressionally approved program ended, the FCC lost its authority to fund Wi-Fi hotspots for use outside of schools and libraries. "I dissented from both decisions at the time, and I am now pleased to circulate these two items, which will end the FCC's illegal funding [of] unsupervised screen time for young kids," he said.

Under Rosenworcel, the FCC said the Communications Act gives it "broad and flexible authority to establish rules governing the equipment and services that will be supported for eligible schools and libraries, as well as to design the specific mechanisms of support."

The E-Rate program can continue providing telecom services to schools and libraries despite the hotspot component being axed. E-Rate disbursed about $1.75 billion in 2024, but could spend more based on demand because it has a funding cap of about $5 billion per year. E-Rate and other Universal Service programs are paid for through fees imposed on phone companies, which typically pass the cost on to consumers.