Trump Federal Communication Commission Chairman Brendan Carr has announced vague potential changes to the FCC’s E-Rate program that could harm program funding, effectiveness, and the overarching goal of bringing affordable Internet access to long-neglected schools and rural communities trapped on the wrong side of the digital divide.

The reforms come as Carr also looks to make changes to the FCC’s broadband mapping efforts, something consumer groups say could harm the government’s ability to measure which communities need improved, affordable access, or suffer from a pronounced lack of broadband competition.

In an announcement to the FCC website, Carr stated the 30-year-old bipartisan E-Rate program, which costs $3 billion annually, was in dire need of reforms. The program is primarily funded by a small surcharge affixed to phone lines. With the steady erosion of copper-based phone lines, debates have arisen about how to best sustain the program.

But instead of focusing on issues like subsidy fraud by large telecoms, Carr’s announcement oddly focuses heavily on concerns about student “screen time” and what content students are allowed to view. It’s a problematic foray for an FCC boss recently under fire for unconstitutional censorship efforts targeting comedians and journalists.

In 2020, former New York City Mayor Bill de Blasio unveiled an Internet Master Plan that was one of the most ambitious municipal broadband proposals in U.S. history. 

It detailed a $2.1 billion commitment to deploy publicly-owned, open-access fiber across the city’s five boroughs, promising to reshape how the nation's largest city would connect a then-estimated 1.5 million city residents without Internet access.

Then, Mayor Eric Adams came into office and quietly killed it.

Now, with new Mayor Zohran Mamdani – whose entire political brand is built on making essential services affordable to the people who need them most – pursuing a popular affordability agenda that has energized his base and inspired electoral interest far outside the Big Apple, the prospect for a city-wide municipal Internet network is back on the radar.

Last week, Public Advocate Jumaane Williams – a non-voting member of the New York City Council with the right to introduce and co-sponsor legislation – released a detailed “Get Connected” report calling “for the city to deliver high-speed, low-cost citywide municipal Internet service akin to a public utility,” laying the policy groundwork for what at least has the potential to become the Mamdani administration's signature infrastructure initiative.

The Cost of Killing the Master Plan

At a press conference with advocates and tenants at the Grand Street Guild Housing Complex, where NYC Mesh has successfully installed fiber connections, Williams said “in the [I]nternet age, we cannot afford to be disconnected, yet many can’t afford to connect.”

In the last few years, the California Public Utilities Commission (CPUC) has been more intensely focused on ensuring that broadband in California is affordable. 

So it’s curious to see the California State Assembly vote 67-1 on May 18 to strip telecom oversight authority away from the CPUC and shift it to a more easily lobbied state legislature – and an as-yet-undefined state broadband office.

The effort still has a long road before it’s formalized.

Assembly Constitutional Amendment 9, authored by Assemblymember Tasha Boerner, D-Encinitas, now moves on to the California Senate, where it needs to secure a two-thirds vote before appearing on a statewide ballot before California voters.

Image

The proposal would remove the state constitutional requirement to define and regulate telecommunications as a public utility, something long supported by telecom giants. Boerner’s amendment (and companion bill AB 2289) gives lawmakers leeway to strip the CPUC of its telecom portfolio and hand it over to a newly created state broadband office by 2028.

Consumer Advocates Are 'Shocked' and Skeptical 

Boerner’s proposal is being sold to state lawmakers and the local press as a way to keep the CPUC focused on soaring electrical costs.

In the marathon to bring universal high-speed Internet service to the most rural state in the nation, Vermont is heading into the last-mile stretch of the race with the finish line in sight.

In February, the Vermont Community Broadband Board (VCBB) announced that the National Telecommunications and Information Administration (NTIA) overseeing the federal Broadband Equity, Access, and Deployment (BEAD) program, had approved Vermont’s Final Proposal, unlocking $93 million of the state's nearly $229 million federal allocation.

After years of painstaking planning, public input, and navigating bureaucratic hurdles, it marked a pivotal moment – with the state's selected grant recipients cleared to begin deploying mostly fiber to the communities that have long been waiting for high-speed connectivity after decades of neglect from the Big Cable and Telecom providers.

“This is a major milestone for many of our rural towns and a once-in-a-generation opportunity to strengthen and revitalize communities,” Gov. Phil Scott said in a statement, crediting NTIA, Vermont's congressional delegation, and the VCBB for shepherding the state's plan.

Image

U.S. Sen. Bernie Sanders, never one to mince words, spoke to both the significance and the frustration of the moment. “Affordable, high-speed [I]nternet is a vitally important resource in every corner of the country. It is foundational to modern life,” he said. 

Consumer and civil rights groups last week told the Trump administration that their proposed “reforms” of the FCC’s Lifeline program would undermine efforts to ensure equitable, affordable access to the internet for all Americans, and are based on lies about immigrant fraud.

Last January, the Trump FCC under Brendan Carr proposed a series of “reforms” to the agency’s Lifeline program, which, as part of the broader bipartisan Universal Service Fund (USF) program, provides qualifying low-income US households with a modest $9.25 monthly subsidy for telecom services (which jumps to $34.25 for tribal homes).

At the time, Carr insisted that the reforms were necessary to improve government efficiency.

“The FCC has an obligation to be a good steward of federal dollars,” Carr said in a prepared statement. “And that is why the agency will be taking a comprehensive look at the FCC’s nearly $1 billion dollar a year Lifeline program, which subsidizes phone and Internet services for low-income Americans.”

To further sell his pitch, Carr made the false claim that the program was somehow awash with illegal immigrants who were exploiting U.S. taxpayers. To “prove” his claim, Carr stated that more than $5 million in Lifeline money funded 116,000 dead people across three states, with the heaviest “fraud” occurring in California.

Image

“Over 80% of those scams took place in California alone,” Carr said. “That type of waste, fraud, and abuse is completely unacceptable. It should go without saying that only beneficiaries that are both living and here legally should qualify for benefits under this program,” Carr said.

Locals in Longmeadow, Massachusetts say they’re being bombarded with misleading mailers, texts, and phone calls from a telecom-industry linked group trying to mislead the public ahead of a key vote on the city’s plan to begin construction of a municipal broadband fiber network.

U.S. telecom monopolies have a long and sordid history of paying proxy organizations to try and undermine popular municipal broadband deployment projects. The goal is always to mislead, confuse, and disorient the public ahead of key municipal votes in order to shield regional telecom monopolies from reform and meaningful competition.

Such groups almost always pretend to be objective third parties trying to protect taxpayers from harm. But in reality they’re an extension of the lobbying efforts of unpopular regional monopolies, who know that publicly opposing these popular networks isn’t a great look.

Image

These tactics are popping up yet again this month in Longmeadow, where “dark money” group “Mass Priorities” is working overtime to derail the city’s effort to build its own fiber network.

Longmeadow residents are voting today (May 12) on whether to approve an $8.6 million loan to construct the first phase of what will ultimately be a town-wide fiber broadband network.

In yet another bruising blow in the fight to ensure equitable access to high-speed Internet service, an appeals court struck down federal rules this week that aimed to combat digital redlining.

The ruling came despite a mandate from the bipartisan infrastructure law passed during the Biden administration that directed the FCC to develop “rules to facilitate equal access to broadband internet access service” that would prevent “digital discrimination of access based on income level, race, ethnicity, color, religion, or national origin.”

Not adopted until 2023 after a lengthy rulemaking process and public comment period, when the FCC published its final digital discrimination rules it gave the agency the authority to penalize Internet Service Providers (ISPs) whose policies resulted in “disparate impact,” even if the agency couldn’t prove deliberate discriminatory intent.

Among the real-world “disparate impact” examples advocates presented to the FCC were instances such as when residents of Hope Village, a mostly Black neighborhood in Detroit, experienced a 45-day Internet outage during the height of the pandemic lockdowns – as well as studies that found many large providers charge poor, minority neighborhoods significantly more money for slower broadband access than their more affluent, less diverse counterparts.

Daunted by the high costs of building its own municipal fiber network, Flagstaff Arizona instead struck a public private partnership (PPP) in late 2024. A year and a half later and that partnership is starting to drive significant new fiber deployments and some significant new investment to the city of 77,000.

Or that’s at least the conclusion of a new whitepaper by the Fiber Broadband Association, a policy coalition of municipal broadband networks and key fiber industry giants such as Adtran, GFiber, Corning, Calix, and Graybar.

The analysis, "Broadband Community Profile: A Public-Private Partnership for Fiber – Flagstaff, Arizona," explores how the PPP the city struck Arizona-based Wecom Fiber is expected to inject at least $100 million into local economy over five years while saving the city an estimated $18 million in capital expenses.

Frustrated by market failure and a lack of meaningful broadband competition among regional telecom monopolies, Flagstaff considered building its own municipal fiber network in 2023. But city officials found that even just connecting 34 city-owned buildings (estimated to be around $20 million) would be untenable given budgetary constraints.

Lawmakers are pressuring the FCC to restore a council dedicated to ensuring that broadband availability is both equitable and affordable, especially for marginalized communities that have historically been overlooked and overcharged when it comes to Internet access.

A cornerstone of the Trump administration has been the wholesale (and at times illegal) termination of any and all digital equity initiatives aimed at making broadband more uniformly available and affordable for those long stuck on the wrong side of the digital divide.

That included last year’s dismantling of the federal Digital Equity Act, which mandated the creation of three different grant programs intended to shore up equitable, widespread access to affordable Internet, while providing the tools and digital literacy education needed to help neglected U.S. communities get online.

It also included the Trump FCC’s dismantling of the Communications Equity and Diversity Council (CEDC), which has operated in some capacity since 2003 under multiple partisan administrations to make the communications sector more equitable and reduce digital discrimination. Until FCC Chair Brendan Carr arbitrarily disbanded it in January 2025.

Image

Carr has historically been allied with the nation’s biggest telecom giants, consistently siding with regional monopolies on nearly all policy initiatives. But he’s also dutifully loyal to President Trump, who has targeted efforts to combat systemic racism.

Local government organizations are voicing their strong opposition to the American Broadband Deployment Act, an industry friendly proposal being cooked up in the House that would take public rights of way management and property decisions away from state, local, and tribal governments through federal preemption and industry-friendly defaults.

The American Broadband Deployment Act (HR 2289) saw initial approval by the US House Energy and Commerce Committee last January. It’s being presented by telecom companies as a way to dramatically streamline government broadband permitting and regulation.

With bill proponents insisting it will speed up the deployment of fast, affordable broadband access, the massive 100-page omnibus bill integrates more than 20 different permitting and preemption changes that would impact cellular tower siting, wireline broadband deployment, cable franchising, and federal review processes in ways favorable to industry.

Image

But organizations representing local governments say the sales pitch for the bill is the latest in a long line of misleading gambits by industry, designed to eliminate oversight of heavily-taxpayer subsidized providers at the cost of state, local, and tribal autonomy and public safety.