Senator Cruz to Intro Resolution to Repeal FCC's Off-Premises Wi-Fi Subsidies

On January 16, Broadband Breakfast reported that Sen. Ted Cruz intends to introduce a joint resolution of disapproval in the Senate to overturn the FCC's July 2024 order granting subsidies for schools and libraries to loan out Wi-Fi hotspots for off-premises use. 

The expected joint resolution of disapproval will be filed under the Congressional Review Act (CRA), which provides a fast-track mechanism for Congress to repeal new agency rules. If passed by 119th Congress, the CRA joint resolution would go to the desk of President-elect Donald Trump for signature. Background on the CRA is provided in FSF Board of Academic Advisors' Member Daniel Lyons' June 2018 Perspectives from FSF Scholars, "The Congressional Review Act and the Toxic Politics of Net Neutrality."

The FCC's July 2024 order for subsidizing off-premises Wi-Fi is a good candidate for repeal under the CRA. As explained in my August 2024 Perspectives from FSF Scholars, "FCC Lacks Authority to Subsidize Wi-Fi Use Away from Schools and Libraries":

Section 254(h) of the Communications Act, on which the Commission relies, authorizes universal service subsidies only to or for "schools," "classrooms," and "libraries." Subsidies for off-premises Wi-Fi use – potentially anywhere in the world – are not included in the statute. The Commission's decision to spend taxpayer dollars without an overall budget cap for off-premises Wi-Fi use is unlawful. 

Thus, a joint resolution of disapproval to repeal the Commission's order is a rule of law measure. 

 

Additionally, Sen. Cruz and others have raised reasonable concerns about the Commission's order causing wasteful taxpayer expenditures and child Internet use in environments without adult supervision. The agency's approved subsidies would come from the E-Rate program, which is funded by universal service surcharges imposed on consumer bills for voice services. 

 

Thanks go to Sen. Cruz for his willingness to take action for government agency accountability, fiscal responsibility, and child safety.