U.S. Supreme Court Upholds Funding Mechanism for E-rate Program for Schools

Schools will continue to be able to apply for federal internet and technology discounts. On Friday, the Supreme Court decided in FCC v. Consumers’ Research that the Federal Communications Commission (FCC) may continue to use the Universal Service Administrative Co. (USAC), a private nonprofit company created by the Federal Communications Commission (FCC), to administer universal service programs and assist it in “projecting revenues and expenses [for universal service programs], so that carriers pay the needed amount.” One program the USAC administers is the E-rate program, which is a multibillion-dollar program that provides internet and technology discounts for schools and libraries. 

This decision preserves important E-rate funding for schools, which consider the funding vital to providing internet and technology access to students. Had the Court decided differently, it could have upended how the E-rate program is run. In 2022-24, more than 106,00 schools received E-rate funding, providing internet services for more than 54 million students.