Reckless FCC rule subverts parental authority, endangers the Universal Service Fund, and harms rural broadband expansion 

WASHINGTON, D.C. – Today, U.S. Senate Commerce Committee Chairman Ted Cruz (R-Texas) celebrated the Senate passage of his resolution of disapproval under the Congressional Review Act (CRA), which would repeal an unlawful Biden-era Federal Communications Commission (FCC) rule bankrolling kids’ unsupervised internet access, undermining parental rights, and threatening to raise taxes on American families.

“The Biden administration’s last-minute partisan edict was not only misguided—it was illegal, harmful to children, duplicative of other government programs, and a blatant overreach by a partisan agency acting in defiance of Congress,” said Sen. Cruz. “Today, we voted to reverse this rule and protect America’s children from the many dangers lurking when they surf the web without parental consent or supervision. I am proud to have led my Republican colleagues in standing for American families, and I appreciate the support of FCC Chairman Brendan Carr, America’s rural broadband providers, and a wide cross-section of groups who are committed to advancing kids’ safety online and sound fiscal policy. I will continue my efforts to ensure federal agencies do not endanger children, jeopardize taxpayer dollars, or disregard the law without consequence.”

The Biden Hotspot Rule unlawfully expanded the Universal Service Fund (USF) to subsidize schoolchildren’s off-campus use of Wi-Fi hotspots, despite the Communications Act clearly limiting E-Rate funds to “classrooms.” Additionally, the rule did not require schools to obtain parental consent before distributing federally-subsidized hotspots or establish meaningful filtering requirements, inviting exposure to inappropriate content and impeding parents’ ability to control the content their kids can access online.

The Biden Hotspot Rule also had no overall limit on the amount of federal dollars that can be expended on the hotspots, failed to target children without existing home internet access, and allowed for duplication of service in areas where the federal government is already subsidizing broadband, including the $42 billion BEAD program. This not only created redundant subsidies; it undermined efforts of rural providers to build out broadband where it’s needed most. Adding an uncapped hotspot program would also put upward pressure on the USF contribution rate at a time when it has already reached a record high of 36.6%. As a result, the rule would strain the USF, destabilizing core programs while increasing the risk of waste, fraud, and abuse of federal funds.

The Cruz resolution scrapping the Biden hotspot program passed by a vote of 50-38 and now heads to the House of Representatives.

Sen. Cruz originally introduced the CRA in January. Sens. John Thune (R-S.D.), Roger Wicker (R-Miss.), Deb Fischer (R-Neb.), Jerry Moran (R-Kan.), Marsha Blackburn (R-Tenn.), Todd Young (R-Ind.), Ted Budd (R-N.C.), Eric Schmitt (R-Mo.), John Curtis (R-Utah), Tim Sheehy (R-Mont.), Shelley Moore Capito (R-W.Va.), Cynthia Lummis (R-Wyo.), James Lankford (R-Okla.), James Justice (R-W.Va.), Jim Banks (R-Ind.), and Joni Ernst (R-Iowa) are co-sponsors of the CRA Joint Resolution.

Background:?

Sen. Cruz has long led the fight to protect kids online and protect parents’ abilities to determine what internet content their kids can access. In April 2024, Sens. Cruz, Marsha Blackburn (R-Tenn.), Mike Braun (R-Ind.), Ted Budd (R-N.C.), James Lankford (R-Okla.), Cynthia Lummis (R-Wyo.), and Pete Ricketts (R-Neb.) filed an amicus brief opposing the Biden administration’s unlawful decision to expand the FCC’s E-Rate program to fund Wi-Fi on school buses. Parents previously sounded alarms about the federal government subsidizing children’s unsupervised access to social media sites, like TikTok and Instagram, on bus rides to and from school.

In October 2023, Sen. Cruz introduced The Eyes on the Board Act, which was supported by Sens. Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), and John Fetterman (D-Pa.). The bill would require schools receiving federal broadband funding through the E-Rate program to block access to distracting and addictive social media apps or websites on subsidized services, devices, and networks.

In September 2023, Sen. Cruz and former House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-Wash.) sent a letter to the newly sworn-in FCC Commissioner, Anna Gomez, urging her to oppose former FCC Chairwoman Rosenworcel’s plan to illegally expand the E-rate program beyond school classrooms and libraries.

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