The long-awaited verdict from the U.S. Supreme Court is in regarding a 5th Circuit decision that the Universal Service Fund (USF) was unconstitutional.
Friday’s 6-3 ruling in favor of an FCC appeal of the lower court’s ruling for now safeguards school bus Wi-Fi eligibility under E-Rate. The program provides discounts of 20 to 90 percent on the costs of internet connectivity, as well as equipment installation based on a school district’s poverty level and rural location.
The 5th Circuit had ruled that the $9 billion per year USF, the accounting and funding mechanism for E-Rate based on fee collection and the Universal Service Administration Company represented taxation not approved by Congress. The Court disagreed.
As reported by Broadband Breakfast, Justice Elana Kagan wrote that the 1996 amendment of the Communications Act, “provided the Commission with clear guidance on how to promote universal service using carrier contributions. Our precedents do not require more.”
But school bus Wi-Fi proponents aren’t out of the woods yet. Sen. Ted Cruz has led the charge in Congress questioning the constitutionality of expanding E-Rate beyond the original intent of funding internet in classrooms and libraries, arguing that Wi-Fi on school buses could lead to unsupervised access to inappropriate content like TikTok. But school bus Wi-Fi providers and users counter that robust content filters in unison with school district networks block inappropriate student internet searches.
The Education and Libraries Networks Coalition (EdLiNC) applauded the U.S. Supreme Court’s decision to uphold the constitutionality of the USF.
“Today’s ruling marks a victory—but not the end of the work. EdLiNC urges Congress, the FCC, and policymakers at all levels to continue protecting and modernizing the E-Rate program and the broader USF,” EdLiNC stated. “Ensuring sustained, affordable broadband access for schools and libraries is not just a policy imperative—it is a moral one. E-Rate remains one of the federal government’s most effective tools for promoting educational opportunity. We look forward to working with federal leaders to uphold and expand this critical program for the benefit of every learner, in every zip code.”
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The Universal Service Program was created by Congress in 1996 with the passage of the Telecommunications Act and is administered by the FCC. It has since served to provide funds to libraries and schools to have basic internet connections.
Over the years, the FCC has updated E-Rate to fund not only connected libraries and schools but also to cover services like installing Wi-Fi hotspots throughout school buildings. However, school buses, despite their frequent mention as extensions of the classroom had never been included under the same umbrella, and school transportation has remained left out of the funding pool, until former FCC Chairwoman Jessica Rosenworcels’ Learning Without Limits initiative passed in 2023.
