2024 E-rate Year in Review: Cybersecurity, off-campus access, and a Constitutional challenge to the Universal Service Fund among key E-rate events in 2024
As calendar year 2024 draws to a close, here is a look back at the “the year that was” in E-rate and funding for student internet access.
Funding Demand Increases for FY2024
The Funding Year 2024 Form 471 application filing window closed on March 27, 2024, with schools and libraries certifying more than 35,000 Forms 471 for a total of almost $3.2 billion in discounts on connectivity and infrastructure. FY2024 request totals were nearly 10% higher than in FY2023, with increases in demand for both Category One and Two discounts. USAC issued the first FY2024 funding wave on April 27, committing $972 million.
Cybersecurity Pilot Program
On June 6, 2024, the Federal Communications Commission voted to approve a three year, $200 million Pilot program to support advanced cybersecurity products and services for E-rate applicants across the country. The Commission ran the “first round” application window for the program from September 17 through November 1, receiving $3.7 billion of funding applications from 2,734 schools, libraries, and consortia across the country. The FCC is currently reviewing applications to determine which applicants will be selected to continue with phase two of the application process.
Wi-Fi Hotspot Service Added to Eligible Services List
On July 18, 2024, the Federal Communications Commission voted to adopt a Report and Order updating E-rate program rules to include Wi-Fi hotspot equipment and services as eligible for Category One discounts. Under the new rules, schools and libraries participating in the E-rate program can receive funding to support hotspot loan programs which will enable students and library patrons to have internet connectivity in their homes and other off-campus locations. The new rules include caps on discounts for hotspot service, as well as detailed requirements for recordkeeping and utilization.
Fifth Circuit Decision Threatens Future of Universal Service Fund
On July 24, 2024, the U.S. Court of Appeals for the Fifth Circuit ruled in Consumers’ Research v. FCC that the $8 billion annual Universal Service Fund (USF) subsidy program was unconstitutional. The decision contradicted rulings from the Sixth and Eleventh Circuits, which had previously upheld the legality of the USF. On November 22, the United States Supreme Court granted certiorari to a petition challenging the ruling, allowing for oral arguments and briefs on the merits of the case.
Emergency Connectivity Fund Sunsets
The FCC’s $7.2 billion Emergency Connectivity Fund program officially reached its end on June 30, 2024. Authorized as part of the American Rescue Plan Act COVID relief programs, as of December 9, 2024, the ECF had disbursed almost five billion dollars in support of at-home connectivity and remove learning devices for K-12 students and public library patrons.
