FCC’s Carr, Cruz Move to Slash Wi-Fi Subsidies for Schools Over Content Risks

FCC Chairman Brendan Carr has teamed up with Sen. Ted Cruz to end subsidies for Wi-Fi hotspots and school bus internet, citing risks of unsupervised access to harmful content. Critics argue this harms low-income students' education. The move signals a conservative shift in broadband policy, potentially facing legal challenges.
FCC’s Carr, Cruz Move to Slash Wi-Fi Subsidies for Schools Over Content Risks
Written by John Marshall

The Unlikely Alliance in Telecom Policy

In a surprising turn of events, Federal Communications Commission Chairman Brendan Carr has aligned with Republican Sen. Ted Cruz to dismantle a program providing Wi-Fi hotspots to schoolchildren, marking a significant shift in federal broadband policy. The initiative, originally launched under the Biden administration, allowed schools and libraries to lend out mobile hotspots using funds from the FCC’s E-Rate program, aimed at bridging the digital divide for students without home internet access.

This collaboration comes as Cruz’s legislative efforts to block the program have stalled in Congress, but Carr’s proposal effectively achieves the same goal through regulatory means. According to reporting from Ars Technica, Carr announced plans to end subsidies for Wi-Fi on school buses and hotspot lending outside school hours, citing concerns over unsupervised internet use and potential exposure to inappropriate content.

Concerns Over Child Safety and Oversight

Critics of the program argue that providing hotspots without adequate parental controls could lead to increased screen time and access to harmful online material. Carr, in his proposal, emphasized the need for better oversight, pointing out that the subsidies were expanded during the COVID-19 pandemic to support remote learning but have since outlived their necessity.

Supporters, however, including Democratic FCC Commissioner Anna Gomez, contend that terminating the program would disproportionately affect low-income and rural students who rely on these devices for homework and educational resources. Gomez highlighted in a statement that millions of students and even seniors depend on this connectivity for essential services like telehealth, warning that the move could exacerbate existing inequalities in digital access.

Historical Context and Political Motivations

The roots of this policy reversal trace back to early 2025, when Cruz introduced a bill claiming that hotspot lending might enable censorship of conservative viewpoints online. As detailed in an earlier Ars Technica piece, Cruz’s concerns centered on potential content filtering by schools, which he argued could limit students’ exposure to diverse perspectives.

Despite the Senate passing a resolution in May to nullify the FCC’s hotspot rule—covered extensively by Techdirt—the measure failed to advance in the House. Now, with Carr at the helm of a Republican-led FCC, the agency is poised to reverse the policy unilaterally, bypassing the need for congressional approval.

Implications for Broadband Funding

This development raises broader questions about the future of federal broadband subsidies, particularly the E-Rate program, which has long supported connectivity in educational institutions. Industry analysts note that ending these subsidies could redirect funds but might also strain school budgets already grappling with rising technology costs.

Moreover, the move aligns with a conservative push to limit government involvement in internet access, as evidenced by Cruz’s ongoing advocacy against what he terms “regressive taxes” on consumers to fund such programs. In a post on X, Cruz previously celebrated court rulings limiting FCC taxing authority, underscoring his stance against bureaucratic overreach.

Potential Legal and Industry Fallout

Legal challenges are likely, with advocacy groups preparing to contest the FCC’s decision on grounds that it undermines efforts to close the homework gap. Organizations like the Schools, Health & Libraries Broadband Coalition have voiced opposition, arguing that the policy change ignores data showing improved academic outcomes for students with reliable internet.

For telecom providers, the end of these subsidies could mean reduced demand for mobile hotspots, potentially impacting revenue streams tied to educational contracts. As reported by Devdiscourse, Carr’s proposal specifically targets the lack of parental consent in hotspot distribution, framing it as a child protection measure rather than a cutback on access.

Looking Ahead in Regulatory Shifts

As the FCC prepares to vote on Carr’s proposal in the coming months, stakeholders in education and technology sectors are bracing for a potential overhaul of digital equity initiatives. This alliance between Carr and Cruz not only highlights partisan divides in telecom policy but also signals a possible retrenchment from expansive broadband programs established during the pandemic.

Ultimately, the outcome could reshape how federal funds are allocated for student connectivity, with long-term effects on educational equity and online safety debates. Industry insiders will be watching closely as this unfolds, potentially setting precedents for future FCC actions under similar political alignments.

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