The Federal Register published the FCC’s September 30, 2025 Order on Reconsideration determining that section 254 of the Communications Act of 1934 does not permit the use of E-Rate program funds for off-premises Wi-Fi hotspots. In granting a petition for reconsideration of the July 2024 E-Rate Order, the Commission decided that the funding of Wi-Fi hotspots and other wireless internet services does not constitute an “educational purpose” because off-premises hot-spots do not directly support “elementary schools, secondary schools, and libraries” as required by section 254(h)(1)(B).
The Commission also denied two petitions asking it to reconsider its decision in the July 2024 E-Rate Order not to fund wireless services to LTE-enabled computing devices and imposing limits to the funding of other hotspot and wireless devices.
The July 2024 rules have now been withdrawn, and E-Rate program funding may no longer be used to support off-premises Wi-Fi hotspots and other wireless Internet services. Section 54.504 and 54.516 of the Commission’s rules have been amended as of January 21, 2026, and the new rules are effective February 20, 2026.
