March 24, 2025  |  Peter Long

How the Supreme Court Saved the FCC E-Rate Program - For Now

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For years, the FCC E-Rate program has been a lifeline for schools and libraries, ensuring that students and educators across the country have access to affordable, high-speed broadband. Without this program, the digital divide would widen, limiting access to educational software, virtual learning, and essential online resources—especially in rural and underfunded districts.

However, two recent court cases have challenged this program and could put this critical funding in jeopardy. Today we want to discuss a case brought before the U.S. Supreme Court, Wisconsin Bell, Inc. v. United States ex rel. Heath, which questioned whether E-Rate reimbursements truly counted as government-funded claims under the False Claims Act (FCA). The stakes were high: If the Court ruled that E-Rate funds did not come from the government, fraudulent billing cases could have been dismissed, weakening protections for the program.

Next week’s post will be about a case before the Supreme Court now – with oral arguments to be heard on March 26th - FCC v. Consumers’ Research.  That case is about reviewing a ruling from the Fifth Circuit Appeals court declaring the FCC’s created Universal Services Fund (which basically controls the E-Rate program) as unconstitutional – a different issue altogether than todays ruling and case.  More on the FCC v. Consumers’ Research in next week’s post – but here is a link to the case details for those that want to keep up to date.

Fortunately, the February 28th Supreme Court's ruling in Bell, Inc. v. United States ex rel. Heath affirmed the legitimacy of the E-Rate program and its funding structure, reinforcing protections against fraud and securing continued broadband access for schools and libraries nationwide.

Why This Supreme Court Decision Matters for EdTech Companies

The Court's decision is a victory for educational technology providers, software developers, and digital learning platforms. Here's why:

• E-Rate Funding is Secure—Schools Can Afford More Digital Learning Tools
  By upholding the federal government’s role in E-Rate funding, the Court protected the ability of schools to continue receiving subsidies that make broadband and cloud-based learning solutions affordable. This ensures that EdTech companies can continue selling educational software, platforms, and services to schools that rely on strong internet infrastructure.
• Broadband Access Remains a Priority for K-12 Education

  With the Supreme Court validating the integrity of the E-Rate program, schools will continue to prioritize broadband expansion and network upgrades. This is great news for companies offering:

  • Learning management systems (LMS)
  • Online collaboration tools
  • Adaptive learning platforms
  • Virtual and augmented reality learning experiences
• Protection Against Fraud Means More Reliable Funding
  The ruling ensures stricter oversight and enforcement against fraudulent pricing schemes by telecom providers. Schools will now pay the “Lowest” published rates given to similar broadband offers to the commercial business industry segment. This has been the requirement in the past but lots of efforts exist to make “false” differentiation of bandwidth services to justify charging schools and districts higher rates than sticking to the requirement of offering them the “Lowest” commercial rates offered to businesses getting the same or similar bandwidth. Fair rates for internet services and making education technology budgets more predictable is a victory for the EdTech industry and for schools and districts across the country. This benefits EdTech companies because school districts can better plan and allocate resources toward software licensing, digital subscriptions, and other educational technology investments.

What's Next for EdTech Marketers?

With this Supreme Court ruling, the E-Rate program will remain a reliable source of funding for schools.  This means that EdTech companies must position their products accordingly. Here’s how marketers should adapt:

1. Educate school districts on how E-Rate subsidies make it easier to afford digital learning solutions.
2. Highlight E-Rate eligibility in marketing materials — if your product requires strong broadband, reinforce how schools can use E-Rate funds to support implementation.
3. Engage with decision-makers — technology directors, IT administrators, and procurement officers are now empowered to pursue more internet-dependent EdTech solutions without fear of funding disruptions.
4. Align messaging with broadband expansion initiatives — with stable E-Rate funding, schools will continue investing in stronger networks. This supports growth in cloud-based, AI-powered, and interactive learning platforms.

Final Thoughts

These two Supreme Court decisions will hopefully preserve the E-Rate program, but also solidify the foundation for digital learning in K-12 education. EdTech companies should view this ruling as an opportunity to expand their reach, knowing that schools will continue to prioritize internet connectivity and digital learning tools.

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