Feds seek public comments on whether to continue affordable internet funding
Public libraries are bracing for another wave of possible funding cuts as the Federal Communications Commission evaluates continuing the schools and libraries universal service support program, also known as E-Rate.
The E-Rate program provides affordable internet for about 11,000 libraries and 100,000 schools nationwide, particularly those serving low-income communities. Depending on the need, E-Rate discounts 20-90% of costs for eligible internet services and connection equipment. E-Rate is financed by the Universal Service Fund, which is in turn funded through contributions from telecommunications companies.
The FCC is seeking public comment through Oct. 13 on whether it should limit or restructure the E-Rate program “to reflect today’s connectivity rates (and) reduce federal spending.” The commission also questions whether a previous legal presumption that activities occurring in libraries and schools serve an educational purpose and are therefore eligible for E-Rate funding should stand.
The FCC raises questions about E-Rate’s continued necessity alongside other federal funding sources for broadband access, like the Broadband Equity, Access and Deployment (BEAD) program. The commission also cites screen time and internet safety concerns for children in its proposal.
Virtually all libraries across the U.S. offer internet access to the public today, says the American Library Association, a leading advocate for E-Rate since the program’s inception in the late 1990s.
Alaska received $806,122,379 in E-Rate funding between 2021 and 2025. Local libraries on the southern Kenai Peninsula say that E-Rate supports 70% of their annual internet costs. E-Rate also subsidizes 70% of the Kenai Peninsula Borough School District’s internet costs.
Representatives from the KPBSD did not respond to requests for comment before press time.
As a city department, the Homer Public Library’s basic operations are funded through the City of Homer’s General Fund. Library director Dave Berry said without E-Rate, the city would be on the hook for another almost $12,000 per year.
As small, independent nonprofits, the Anchor Point, Ninilchik and Seldovia libraries face steeper challenges to cover increased costs.
Seldovia Library Director Cindy Mom said losing E-Rate would have “a huge impact on our already shoestring budget.”
With the E-Rate discount, the Seldovia and Ninilchik libraries both pay $27 per month, or $324 annually, for internet. The Anchor Point Library currently pays $68.70 each month. Its costs would more than triple if that funding was lost.
“I know that doesn’t sound like a very big number, but … we solely operate on volunteers and fundraising and donations. We have to slim off in every area that we can, and we hold a really tight budget to be able to keep our doors open,” said Ninilchik Library board president Lashellia Powell.
Rural libraries are community hubs that serve as vital “third places” and provide a wide range of services to residents and visitors that they might not otherwise have access to. In addition to offering free computer use inside the library building, several also enable free WiFi access in the parking lot for patrons outside of regular hours.
“Being able to offer free public computers and WiFi is the single-most important service that we provide to both Seldovia residents and visitors,” Mom said.
Powell said about 75% of the Ninilchik Library’s daily patrons ask to use the computers and internet.
“That brings them in to utilize the other services we have,” she said.
Without E-Rate, rural libraries would have to look for other sources, like fundraisers or grants, to cover costs. But those resources aren’t stable and represent additional insecurity and administrative burdens on library staff and volunteers. If funding losses can’t be made up, services could change or decrease to offset costs.
In addition to the current funding scare, library administrators are battling fatigue after being forced to advocate for continuous years to maintain adequate levels of state and federal funding.
In 2024, the state-run Public Library Assistance Grant program was slashed by nearly 74% before it was eventually restored. Last year, libraries faced funding uncertainty at the federal level after President Donald Trump signed an executive order to dismantle the Institute of Museum and Library Services, the only federal agency dedicated to providing funding for the nation’s libraries. That saga ended in April, after the Trump Administration withdrew its appeal of a federal judge’s ruling that halted IMLS’s dismantlement.
“As director, I am beleaguered by the continuous threats to our funding…. The uncertainty, and administrative and emotional stress of having to advocate, over and over, for the library is unsustainable,” Mom said.
Members of Alaska’s Congressional delegation encouraged Alaska schools, libraries and other E-Rate beneficiaries to submit public comments and share their experiences directly with the FCC. Spokespersons for Sen. Dan Sullivan and Sen. Lisa Murkowski, both R-Alaska, said each supports affordable broadband access in Alaska’s high-cost and rural areas.
“It is important for the Commission to hear firsthand about the ongoing cost of providing broadband in rural Alaska and why E-Rate remains an operational necessity,” said Amanda Coyne, Sullivan’s communications director.
Both Sullivan and Murkowski support periodic evaluation by Congress and the FCC of Universal Service Fund programs as technology and community needs evolve. Sullivan is a member of the bipartisan Congressional Universal Service Fund Working Group, which is examining long-term modernization and reauthorization of the Universal Service Fund, including the E-Rate program, to ensure it continues serving the communities Congress intended, Coyne said.
“But improving accountability and incorporating new technologies should not come at the expense of universal service’s core mission. (Sen. Murkowski’s) focus remains on ensuring rural communities have dependable, affordable connectivity while allowing the FCC’s programs to adapt as technology and community needs evolve,” said Joe Plesha, Murkowski’s communications director.
Rep. Nick Begich, R-Alaska, did not respond to a request for comment before press time.
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