Spotlight

Why the E-Rate Court Case Matters

Earlier this month, the U.S. Supreme Court heard oral argument in Wisconsin Bell, Inc. v. United States of America ex rel. Todd Heath, 144 S.Ct. 2657 (2024), which involves the E-Rate program, a federal subsidy that has made internet connectivity affordable and accessible in 99% of school districts and all public libraries in the country. In Wisconsin Bell, a whistleblower brought an action alleging that Wisconsin Bell, a telecommunications company, grossly overcharged schools and libraries for broadband services.

The Supreme Court is tasked with deciding a narrow issue in the case: whether the funds contributed to the E-Rate program are “claims” subject to the False Claims Act. If the Court decides in the affirmative, then Wisconsin Bell and other companies that undermine the E-Rate program and overcharge schools and libraries for internet services could be held liable under that law. Some observers have predicted a narrow ruling in the whistleblower’s favor. Such a decision is critical to protecting the E-Rate and its advancement of educational equity for all students, no matter their background or socioeconomic status. The Court could issue its decision any time until the end of the 2024-2025 term.

Learn more about the case and the E-Rate program here.

This SEF summary of the case was prepared for Keep Our Communities Connected. (See more details below.)

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The Southern Education Foundation is a 501(c)(3) nonprofit organization supported by partners and donors committed to advancing equitable education policies and practices that elevate learning for students from low-income families and students of color in the southern states. We develop and disseminate research-based solutions for policymakers and grow the capacity of education leaders and influencers to create systemic change.

Keep Our Communities Connected is an uncommon movement to support the continuation of Universal Service Funds including E-Rate. This broad movement, including rural communities, school districts, nonprofits,  businesses, tech companies, and public service organizations, has united to protect and ensure the continuation of universal service funds. We advocate for affordable and reliable telecommunications access for all, emphasizing its role in bridging the digital divide, fostering economic growth, and connecting communities.