
"The ruling said that using E-Rate for such funding "both exceeds the FCC's statutory authority and does not promote sound policy choices." The dismantling of the school bus Wi-Fi program began in early September, when FCC Chairman Brendan Carr introduced the declarative ruling. At the time, he said that the program had a record of "poor stewardship of scarce funds, and invited waste, fraud, and abuse.""
"The rationale was that such funding "plainly exceeded the FCC's authority, which Congress limited to funding connections at schools and libraries." "The Order on Reconsideration adopted today finds that the FCC lacked legal authority for this expansion and that the agency failed to properly justify its decision," the press release said. "The prior agency action also represented unreasonable policy choices given the evidence in the record, poor stewardship of scarce funds, and invited waste, fraud, and abuse.""
The FCC issued a Declaratory Ruling that E-Rate funding for Wi‑Fi on school buses is impermissible, reversing a 2023 decision that had allowed such funding. The agency determined that using E-Rate for school-bus services exceeds statutory authority and does not serve the program's defined educational purpose focused on classrooms and libraries. The FCC cited poor stewardship of funds and risks of waste, fraud, and abuse. The agency also adopted an Order on Reconsideration reversing an expansion to fund off-site library and student hotspots as beyond its authority. USAC will be directed to deny pending 2025 funding requests.
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