E-rate/Schools and Libraries Program

Senate Commerce Committee Chairman Ted Cruz (R-TX) released a staff report on October 13, 2026, examining what it calls E-Rate's "hidden consultant ecosystem." The 11-page report, The Cost of Connection: E-Rate's Hidden Consultant Ecosystem, documents the scale of the consulting industry that has grown up around the Federal Communications Commission's schools and

In June, the Federal Communications Commission asked whether E-rate’s mission is complete. Of the 2,514 filings in WC Docket 26-133 that took a position on the program’s future, 2,479 (98.6 percent) urged the FCC to preserve it. Funds For Learning reviewed the comment records in both open E-rate rulemakings. Where filers disagree, it’s over federal screen-time rules, the details of the proposed consultant rules, and the makeup of Universal Service Administrative Company’s Board. Just 21 filings asked the Commission to limit or narrow the program, and only two asked it to end E-rate.

Sen Edward J. Markey (D-MA), member of the Commerce, Science, and Transportation Committee and author of the E-Rate program, along with Senate Democratic Leader Chuck Schumer (D-NY) and Representatives Doris Matsui (D-CA), Rob Menendez (D-NJ), and Grace Meng (D-NY), led nearly the entire Senate Democratic Caucus and more than 60 members of the House Democratic Caucus in urging Federal Communications Commission Chairman Brendan Carr to withdraw the Commission’s damaging proposal to eliminate or limit the E-Rate program.

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.

Three former commissioners of the Federal Communications Commission have passionately affirmed the necessity of $2.4 billion E-Rate program. At the annual AnchorNets 2026 conference, hosted by the Schools, Health & Libraries Broadband Coalition, former Commissioners Rachelle Chong, Deborah Taylor Tate, and Mignon Clyburn attested to the importance of E-Rate for schools, children, and rural communities.

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.”

President Donald Trump has been adamant about one thing: the United States is in an existential race against the People’s Republic of China to win the biggest prize of all: AI dominance. President Trump has also weighed in on the side of data centers to meet the demand provided by accelerated AI adoption. Microsoft recently reported a $680 billion backlog in demand for its cloud services—an 84 percent increase over the previous year.

On June 4, the Federal Communications Commission adopted a Notice of Proposed Rulemaking, seeking comment on “measures the Commission can take…to better protect children when using E-Rate funded networks, including to limit screen time.” In response, the National Telecommunications and Information Administration held a virtual listening session, FCC’s E-Rate and Screen Use NPRM, on September 16, 2026.