FCC Secures Court Procedural Win in E-Rate Legal Battle

WASHINGTON, Sept. 26, 2024 – The Federal Communications Commission secured a legal victory in the U.S. Court of Appeals for the Fifth Circuit this week, as the court granted the agency's motion to dismiss a petition filed by a Texas couple challenging its Wi-Fi hotspots order.

Maurine and Matthew Molak, who run an anti-cyberbullying nonprofit, sued to block the FCC’s July order allowing E-Rate funds, which provide internet discounts for schools and libraries, to provide Wi-Fi hotspots for students to use off campus. They argued that this expansion would lead to more unsupervised social media use and put students at risk. 

The court ruled Wednesday that it lacked jurisdiction to hear the case until the FCC ruled on the Molaks’ petition for reconsideration.

The Molaks’ have taken legal action against multiple FCC attempts to expand the E-Rate. In a separate case before the Fifth Circuit, the couple challenged an order from late last year, which allows funds to be used for Wi-Fi on school buses.

Two additional petitions were filed last week by public school leaders and advocacy groups. These petitions urge the FCC to expand its funding options beyond Wi-Fi hotspots to include LTE-enabled devices, which they argue would better serve students' connectivity needs.

The FCC’s new Wi-Fi hotspots rules were published in the Federal Register on Aug. 20 and went into effect on Sept. 19. 

The FCC has sought additional comment by Oct. 4 on ways to ensure the continued success of Wi-Fi hotspot lending programs funded through the E-Rate program.