The government giveth, and the government taketh away? That may be the case for the future of school-bus Wi-Fi, which currently is eligible for E-Rate discount under the Federal Communication Commission’s Universal Services Fund.
Whether that will continue is now uncertain due to court cases challenging the validity of the USF funding model. In late March, the U.S. Supreme Court heard arguments on an appeal of a 5th Circuit decision that the Universal Service Fund’s revenue mechanism represents an unconstitutional delegation of legislative authority.
The nation’s highest court is expected to rule by next month on whether that decision should be upheld. If the circuit court ruling is upheld, it would be a blow not only to school bus based Wi-Fi but also to other services supported by USF, especially E-Rate. The program provides discounts of 20 to 90 percent on the costs of internet connectivity for schools and libraries, low-income consumers and those in rural areas needing online access to health care providers. The FCC, which oversees USF, added school bus Wi-Fi to E-Rate in late 2023, with discounts awarded for the current school year.
Recent Movement
Looking specifically at school bus Wi-Fi, the opportunity to obtain federal support has been a relatively recent prospect. During the pandemic, the FCC’s $7.171 billion Emergency Connectivity Fund (ECF) program, authorized by Congress in the American Rescue Plan Act of 2021, provided support for schools and libraries that included funds for equipping school buses with Wi-Fi connections.
After the public health emergency expired, the Democractic-majority FCC board approved the use of E-Rate funds to equip school buses for online access.That represented an expansion of boundaries for the long-standing E-Rate program, which was authorized by Congress as part of the Telecommunications Act of 1996 and created by the FCC in 1997.
The more recent expansion has opened new avenues of support for school districts across the country. In the 2024 fiscal year, the FCC received 405 requests for school bus Wi-Fi equipment and services totaling more than $19 million, according to figures reported by the Universal Service Administrative Company, the entity created by FCC to administer the USF and at the heart of the current legal case in front of the Supreme Court.
Awards come in the form of discounts rather than grants. For school districts, this can mean discounts of 20 to 90 percent on the costs of equipment and required fees, with the greater percentages targeted to districts serving economically disadvantaged areas.
While funding for Wi-Fi on buses represents only a small portion of overall USF funds, it has provided welcome support for a practice that some feel can be a boon to student success.
“Wi-Fi-equipped buses turn travel time into productive learning time, helping students complete homework and extend learning beyond school walls,” said Keith Krueger, CEO of CoSN, short for the Consortium for School Networking. “Our members have witnessed the benefits of mobile broadband access during bus rides in diverse communities across the country, from California to Alabama.”
He pointed out that in a digital society, ensuring universal internet access is vital. “Wi-Fi on school buses is one important tool to help close the digital divide,” added Krueger, who addressed STN EXPO West attendees on the topic last summer.
That has been the case for Farmington Municipal Schools in New Mexico, where several different funding sources have been supplemented by the federal funds. The school district first deployed wireless routers in nine buses and then, with satisfactory results, expanded
to its entire 90-bus fleet. The district used Title 1 funds, then federal Elementary and Secondary Schools Emergency Relief funds, and most recently E-Rate funds to fund the expansion.
“We’ve received a lot of compliments from parents who tell us they’re happy when their children are home and have already completed their homework,” said Billy Huish, transportation supervisor.
Farmington covers 808 square miles and services 20 campuses. More than 6,500 of the district’s 11,000 students use school bus transportation every day. Some students face a 30- to 45-minute drive to and from their schools, while others live as far as two hours away. For after-school sports, it sometimes takes three hours to get to games. Given all that time in transit, it makes good sense to provide online access to middle and high school students with MacBooks and elementary students with iPads.
“We consider it critical to provide students wireless internet access on school buses,” Huish said. “Our students are not getting out of school and just riding home. They’re getting on the bus and continuing to learn and get their work done.”
At Henrico County Public Schools in the Richmond, Virginia area, 50 of the district’s 606 buses are equipped to provide Wi-Fi. Director of Pupil Transportation Jim Ellis said that initially, obtaining the equipment was not a priority from his viewpoint, with the impetus coming from district IT staff, which wanted to take advantage of E-Rate funds. But Ellis has been pleased by the results.
“It’s turned out better than I expected,” he said. “I’ve been surprised to see the number of logins.” Ellis added that when it comes to his fleet’s overall needs, an investment in Wi-Fi only makes sense for a limited number of buses.
“We have it on our buses that are having the longest runs,” Ellis noted. “That involves transporting kids to and from specialty centers, so they’re on the bus a little longer than everybody else.”
Complex Issue
Although advocates of funding bus-based Wi-Fi may feel its value is a no-brainer, others have voiced serious concerns. Rather than viewing online access for students through an educational lens, opponents, including prominent Republican politicians, see it as a threat. They argue not only that they believe this an unconstitutional use of federal funds, but access to online content raises red flags. Opponents claim that, at best, internet access will simply allow students to waste time rather than to complete school assignments. What’s even more problematic, they say, is the likelihood that children will gain access to all the unhealthy content the internet has to offer, from inappropriate web content to an avenue
for bullying.
To address such concerns, providers of broadband service offer filters that limit access to restricted content in conjunction with the school district network. This solution hasn’t gained acceptance with opponents, however, who believe children are adept at getting around such barriers.
In addition to the battle in the courts, a separate concern is that the FCC may remove school-bus-based Wi-Fi from the E-rate Eligible Services List. That’s a definite possibility given previous opposition voiced by new Republican FCC commissioners who now make up the board majority and could attempt to reverse the approval under the Learning WIthout Limits initiative.
“We anticipate that as soon as the FCC has five commissioners, the chairman will move to eliminate this flexibility,” said Noelle Ellerson Ng, associate executive director, advocacy and governance for AASA, the School Superintendents Association. This doesn’t mean Wi-Fi would be prohibited on school buses, but an important funding stream could disappear.
“If you pay for it, you’ll be able to have Wi-Fi,” Ellerson Ng explained. “But you’ll need to use all local dollars without any federal support.”
CoSN’s Krueger agreed that removing school bus Wi-Fi and mobile hotspots as eligible services would hamper a useful tool that’s a key part of some districts’ connectivity efforts for students. If that happens, he said his organization urges school transportation leaders to file comments with the FCC opposing the change and highlighting the educational and behavioral benefits of Wi-Fi on school buses.
Krueger said he also feels that if the U.S. Supreme Court rules against the current system, the E-rate program is unlikely to be eliminated outright.
“Instead, Congress will most likely step in to modernize the funding structure through new legislation,” he noted. “Members of both parties strongly support the Universal Service Fund, which not only helps schools and libraries through E-Rate but also homes and businesses in sparsely populated rural areas, rural health clinics and very low-income households.”
He added that such a decision would require a significant policy debate that could directly affect funding for E-Rate-eligible services, including Wi-Fi on school buses.
“School transportation leaders should consider adding their voice to the debate if the Supreme Court upholds the 5th Circuit’s decision undermining the program,” Krueger said.
Moving Ahead
Given the uncertainty of future funding, transportation leaders face options going forward. For those who see value in the potential offered by school bus Wi-Fi, one strategy might be to move as quickly as possible to qualify while funds are still available.
Ellerson Ng at AASA pointed out that even if Wi-Fi is ruled ineligible for future support, it’s possible funds would still be in the pipeline for the coming school year before a full cutoff could be implemented, potentially for the 2026-2027 school year.
Another approach would be to proceed entirely with local funding. That of course could make Wi-Fi on school buses a harder sell when competing with the many budget demands faced by every school district. Should funding be possible, though, the benefits seem obvious.
“If funding is available, school districts should apply for it to enhance student learning by making school buses an extension of the classroom,” Huish advised.
Editor’s Note: As reprinted in the May 2025 issue of School Transportation News.
Related: (Recorded Webinar) How to Fund & Implement School Bus WiFi
Related: A Supreme (Court) Debate Impacting Internet on School Buses?
Related: Benefits of School Bus Wi-Fi Discussed at STN EXPO
Related: Webinar Addresses School Bus Wi-Fi Myths, E-Rate Funding
