California Petitions FCC to Restore Funding for Off-Campus Wi-Fi

WASHINGTON, Nov. 20, 2025 – A California regulator has formally challenged the Federal Communications Commission’s decision to eliminate E-Rate funding for off-campus Wi-Fi programs.

The California Public Utilities Commission said Tuesday the FCC’s September rollback of hotspot and school bus Wi-Fi support was “abrupt,” “unfounded,” and based on a faulty interpretation of Section 254 of the Communications Act.

It also underscored how significant the rollback will be: costing California schools $27.6 million annually in E-Rate support, while the state’s California Teleconnect Fund will be forced to absorb approximately $8.8 million in unplanned costs.

The petition lands seven weeks after the FCC’s September vote, when Chairman Brendan Carr pushed through the rollback on a 2–1 party-line vote and ordered the Universal Service Administrative Company to deny more than 200,000 pending hotspot and school bus Wi-Fi requests. The E-Rate items were late additions to the FCC’s meeting agenda, and drafts weren’t released publicly.

At the time, Carr said the order “restores the FCC’s commitment to following the law as written,” arguing that E-Rate funds were meant to improve access in classrooms and libraries, not beyond them. The effort traces back to a Congressional Review Act resolution introduced by Sen. Ted Cruz, R-Texas, which failed to clear the Senate earlier this year.

In its petition, the CPUC said the FCC’s statutory analysis was flawed, arguing Congress has already authorized off-campus connectivity under Section 254 through the American Rescue Plan, which directed the FCC to provide support for student and library connections “in locations other than the school” using existing E-Rate authority. 

It also accused the FCC of failing to engage in a full and proper rulemaking process and disregarding public comments.

CPUC: Rollback inconsistent with demand on the ground

According to USAC data cited in the filing, California schools and libraries requested about 137,000 monthly hotspot lines for students in the upcoming year, along with more than 119,000 devices checked out for home use. Another 2,637 monthly school bus Wi-Fi lines were requested statewide.

CPUC pointed to a 2021 All4Ed study which found that California has 1.6 million children living in homes without access to high-speed Internet, and over 750,000 of these children lack devices to connect online. It found 62.8 percent of California K-12 students belong to families that may struggle to afford broadband services.

The FCC will now solicit public comment before deciding whether to revisit the issue, though CPUC’s filing also preserves its ability to challenge the decision in federal court if the FCC declines.