$2 billion a year in FCC E-Rate subsidies is under review after the agency opened a rulemaking on whether to narrow or even eliminate support for school and library internet service.
More than 100 Alaska schools and libraries received over $200 million from E-Rate in 2025, with the program covering up to 90% of costs in some remote districts where broadband bills run into the tens of millions.
Lower Kuskokwim School District alone received $96.5 million in 2025—more than $25,000 per student—and says the remaining funding gap would be impossible to close from district budgets already strained by inflation.
Some Alaska institutions have cut subsidy needs by switching to Starlink or other satellite service, but officials say fiber remains more reliable for many communities and lower-cost alternatives are not yet universal.
Alaska school boards and library groups are urging comments to preserve E-Rate, arguing building-level connectivity rates do not reflect whether remote communities can afford dependable internet access.