Digital Divide

Up to 1 million locations could still need broadband service, according to Brooke Donilon, chief of staff of the National Telecommunications and Information Administration (NTIA), as the government prepares to identify areas that may qualify for additional funding. NTIA is waiting for an updated Federal Communications Commission broadband coverage map before working with states to identify locations that remain unserved. “We're anticipating somewhere between 600,000 to a million.

The Save Our E-Rate campaign—led by the American Library Association and the Schools, Health & Libraries Broadband Coalition—has the right name for this moment. On June 25, 2026, the Federal Communications Commission adopted a Notice of Proposed Rulemaking raising fundamental questions about the future of the Universal Service Fund's Schools and Libraries program.

It is disheartening and surprising that the Commission in the current proceeding asks questions that run directly counter to the goals of universal service and Congress’s directives. 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. The statute provides the Commission no authority to do so.

In 1996, Congress directed the Federal Communications Commission to ensure that schools and libraries could obtain advanced telecommunications services at affordable rates. The FCC established the E-Rate program to carry out that mandate. Three decades later, E-Rate spends between $2 billion and $3 billion each year on subsidized internet service and network infrastructure—and has developed into a complex system with intermediary consultants who consume hundreds of millions of dollars annually to assist in accessing federal support for internet bills.

Nearly 91% of New Mexico now has access to high-speed internet, and more than 120,000 more homes and business have been connected since 2022, according to the Office of Broadband Access and Expansion’s (OBAE) annual Data Collection Report to the Legislature, showcasing dramatic achievements based on updated mapping data. The comprehensive report, released October 1, reveals that by the end of 2026, 94% of New Mexico will have broadband access. The data-driven report details OBAE’s investments and results since 2022.

Digitunity recently released its National Computer Ownership Index, a new benchmark tracking computer ownership across the United States using American Community Survey data. The Index finds that 32.9 million people in the U.S. lack access to a large-screen computer, including 25.8 million who rely exclusively on smartphones. While overall computer access has improved since 2016, the findings highlight persistent gaps in access to the devices needed for employment, education, healthcare, and other essential activities.

On October 8, the Schools, Health and Libraries Coalition released a new study, conducted by the Brattle Group, on the economic impact of the E-Rate program. Brattle finds that removing roughly $2.6 billion in annual E-Rate support would reduce annual real GDP by about $4.2 billion, which translates to about $1.60 in lost economic activity for every $1 of E-Rate support removed. The report comes as the Federal Communications Commission conducts “the most comprehensive review of the E-Rate program in more than a decade.”

The U.S. Department of Agriculture's Rural Development invested nearly $25 billion in loans and grants in fiscal year 2026. These investments are helping rural communities grow and maintain critical services that families, farmers, and businesses rely on every day. Rural Development invested $267 million (yes, 1% of the USDA's investment in rural America) to expand internet access to rural households, farms, businesses, and community institutions.

Governments spend billions of dollars to bring broadband to places that lack it. This report asks how much of the new service in the places six programs came from the subsidies, and how much would have arrived anyway. We compare the areas each program funded with similar areas it did not fund, track both over time, and call the difference the program’s effect. The main measure is access, whether a location can buy at least 100/20 Mbps from a wired or licensed wireless provider.

The Federal Communications Commission (FCC) launched a Notice of Proposed Rulemaking (NPRM) on the E-Rate program, asking if E-Rate is still necessary and how the program should change. This proceeding could drastically impact the work of the schools and libraries that rely on E-Rate funding. Every state has E-Rate coordinators that help schools and libraries navigate the federal program.