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US agency considers reforming, ending $3 billion school internet subsidy program

FILE PHOTO: United States Federal Communications Commission logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration//File Photo/File Photo
FILE PHOTO: United States Federal Communications Commission logo and U.S. flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration//File Photo/File Photo Reuters

The U.S. Federal Communications Commission said on Wednesday the agency is considering reforming or ending the roughly $3 billion annual E-Rate subsidy program for schools and libraries.

The FCC said the commission wants to ensure E-Rate-funded internet networks and services are being used for educational purposes. A senior FCC official told reporters the proposal to be released this week raises the question of whether the program has already fulfilled its mission and whether continued funding is consistent with Congress' objective.

(Reporting by David Shepardson; Editing by Chris Reese)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 3, 2026 at 2:34 PM.

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