Schools, Libraries Defend $2.5 Billion E-Rate Program to FCC

Industry groups also supported continued funding amid concerns from FCC Chairman Brendan Carr

Schools, Libraries Defend $2.5 Billion E-Rate Program to FCC
Photo by Thomas Park via Unsplash. Used with permission

WASHINGTON, Oct. 14, 2026 – Federal regulators have received 2,700 comments on their inquiry into a broadband subsidy for schools and libraries, with more than 500 coming in the last two days.

Dozens came from schools, school districts, and libraries that received support urging the agency not to end or roll back the E-Rate program. Many individuals also submitted comments.

Broadband expenses “would not disappear simply because federal support ended. Instead, the additional cost would be transferred directly to the Library and the local taxpayers who support it,” wrote Meredith Wickham, the director of two public libraries in central Ohio.

The Federal Communications Commission began a sweeping review of its E-Rate program in June. The program spends about $2.5 billion annually discounting broadband subscriptions and network gear for schools and libraries.

The FCC asked whether it should reduce E-Rate eligibility to rural areas or even sunset the program, given the wide expansion of broadband infrastructure since the program was stood up in 1996. It now provides some level of support to more than 96 percent of U.S. public schools, with lower income areas getting higher discounts.

The FCC’s inquiry was concerning to participants in the program, and prompted the Schools, Health & Libraries Coalition and other groups to try to mobilize support for E-Rate.

“While most of the country and world are racing ahead to prepare for the future facing our nation’s citizens and students, the Commission is asking whether it should shelve or significantly reduce the E-Rate program, which is the financial pillar supporting most schools’ and libraries’ digital connections,” SHLB Executive Director Joey Wender wrote.

Four former members of the Federal-State Joint Board on Universal Service also opposed cutting E-Rate. The body advised the FCC on how to implement the Telecom Act of 1996, which created E-Rate and other universal service programs.

Led by former GOP FCC Commissioner Rachelle Chong, they said Congress envisioned an ongoing support mechanism.

The American Library Association, School Superintendents Association, and other groups also asked the agency not to roll back funding.

FCC Commissioner Anna Gomez, the agency’s lone Democrat, dissented from the item when it was adopted, saying she opposed cutting E-Rate funding.

(Note: The comment totals exclude many duplicative comments from a single group concerning potential negative health effects of wireless devices.)

Support for reviewing E-Rate 

Some commenters supported the FCC’s inquiry.

Sen. Ted Cruz, R-Texas, submitted a report his office compiled that estimated E-Rate consultants received between $200 million and $400 million annually. Participants often hire outside consultants to navigate the process of soliciting provider bids and securing an E-Rate discount.

“The core question is straightforward: is E-Rate solving today’s connectivity needs, or sustaining a complex intermediary system built for a different era?” Cruz wrote.

The report argued the FCC should simplify E-Rate to reduce the need for consultants and stop any expansion of the program to cover new services.

The National Telecommunications and Information Administration, which manages federal spectrum use and some broadband spending, also submitted comments. The agency summarized input it received during a listening session on excessive screen time last month.

“The overwhelming weight of testimony was critical of routine screen-based instruction and the widespread use of one-to-one devices and EdTech products in K-12 schools,” wrote David Brodian, the agency’s top attorney. “Many participants urged stronger parental choice, transparency, and accountability to ensure that E-Rate does not become a conduit for default screen-based instruction, harmful or inappropriate content, intrusive data collection, or unproven EdTech.”

The Free State Foundation and Los Angeles-based Schools Beyond Screens also supported the agency’s inquiry, citing similar concerns about screen time.

Industry groups

Broadband industry groups were supportive of keeping E-Rate funding in place.

USTelecom said the agency should avoid setting public or standard benchmarks for determining a lowest corresponding price (LCP). 

Broadband providers can only charge E-Rate participants the lowest price they would charge another similarly situated institution without a subsidy, a price USTelecom said wasn’t comparable between providers.

NCTA, which represents the cable industry, said the FCC should preserve the program and not limit funding to rural areas. INCOMPAS agreed.

The two groups supported continued E-Rate eligibility for “special construction,” infrastructure build outs to schools and libraries.

Smaller trade groups ACA Connects and NTCA, along with SpaceX, opposed special construction as it’s currently administered

They said the practice sometimes used to fund builds to schools and libraries where their members had already deployed equipment. NTCA said providers with existing gear in place should have a chance to match a prospective provider’s price before allowing an E-Rate-funded build.

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