Telecom Alert: Wi-Fi Hotspot Order Disapproval; Digital Equity Act Grants Ending; E-Rate Program Reimbursement Order; Lowering Broadband Costs Legislation; Sub Cable License Rules NPRM Deadline Extension [Volume XXII, Issue 19]

Senate Passes Resolution Reversing Wi-Fi Hotspot Order

Last Tuesday, the Senate voted 53-47 approved a motion for consideration of a Congressional Review Act (CRA) resolution repealing a 2024 FCC Order to expand federal subsidies for Wi-fi hotspots in school and libraries across the country. The resolution was first introduced by Senator Ted Cruz (R-TX) in January, who cited concerns with the program’s lack of parental controls over student access on school-provided hotspots, as well as potential censorship of conservative content. A Senate floor vote of disapproval the following Thursday was 50-38, clearing the last Senate hurdle. Rep. Ross Fulcher (R-ID) has initiated similar proceedings in the House to approve its own motion and consider disapproval of the Order. For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239) or Tim Doughty (doughty@khlaw.com; 202-434-4271).

President Trump Announces End to Digital Equity Act Grant Programs

Last Thursday, President Donald Trump announced on Truth Social that he would be ending grant programs facilitated by the Digital Equity Act immediately. The Act was enacted under the Biden Administration’s Infrastructure Investment and Jobs Act of 2021, creating three programs to expand affordable internet access to low-income households, veterans, rural communities, and tribal nations, among other parties. President Trump alleged the programs were unconstitutional and ending the programs would save billions of dollars, while members of Congress, including Sen. Ted Cruz (R-TX) have previously called the Act an extension of “impermissible race-based discrimination.” For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

FCC Order Addresses Organizations’ Access to E-Rate Subsidy Program

Last Wednesday, the Wireline Competition Bureau issued an Order addressing nineteen appeals for reimbursement under the E-Rate subsidy program. All the appeals were predicated on the organization’s failure to file FCC Form 473, an annual certification that the organization-applicant complied with the E-Rate program’s rules and regulations. While the FCC outright denied seven appeals for organizations for failed to file, but were still operational, they also granted the twelve other appeals for organizations who similarly did not file but were unable to due to bankruptcy or other extenuating circumstances. As a result, the Order also instructed the Universal Service Administrative Company (USAC) to develop a process for defunct organizations’ request for reimbursement, which includes creating a unique Service Provider Identification Number and special Form 473 for processing. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342).

Senators Introduce Bill Requiring USF Contributions from Edge Providers

Senators Markwayne Mullin (R-OK), Mark Kelly (D-AZ), Mike Crapo (R-ID) and Kevin Cramer (R-ND) introduced the Lowering Broadband Costs for Consumers Act of 2025, which would require edge providers to contribute to federal universal service program funding. The bill’s definition of edge provider includes digital advertisers, streaming services, social media sites, and other online platforms which indirectly benefit from USF’s efforts to expand internet access to underserved areas. The bill would exempt edge providers below revenue thresholds of $5 billion annually and transmitting less than 3% of national broadband data. If the bill is enacted, the FCC would have 18 months from the date of enactment to complete rulemaking and revise contribution mechanisms for the Universal Service Fund (USF) program. For more information, please contact Casey Lide (lide@khlaw.com; 202.434.4186) or Sean Stokes (stokes@khlaw.com; 410.458.1342). 

FCC Extends Reply Comment Deadline for Undersea Cable Rules

Last Friday, the FCC’s Office of International Affairs (OIA) extended the deadline to reply to comments an additional week to May 19, 2024. While the OIA did not cite specific reasons for the self-imposed extension, it is typical to extend comment deadlines in the public interest and to provide parties with additional time to collect information for their submissions. The FCC’s rulemaking to revise submarine cable landing licensing rules is the first substantive review since 2001, requesting comment on detailed disclosures in the interest of national security, as well as adjustments to ownership reporting thresholds and changing the length of the license term. For more information, please contact Wes Wright (wright@khlaw.com; 202.434.4239) or Tim Doughty (doughty@khlaw.com; 202-434-4271).

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