The U.S. Federal Communications Commission (FCC) has initiated a comprehensive review of its $3 billion annual internet subsidy program for schools and libraries, citing growing concerns over excessive screen time for children. The agency indicated that the scheme could be reformed or even terminated.

FCC Chairman Brendan Carr announced the full review of the E-Rate program, with a new proposal expected this week and an initial vote scheduled for June 25. The FCC has supported school connectivity for nearly three decades.

Carr highlighted that states are already tackling excessive screen time in educational settings, with some districts removing devices and reducing usage, especially for younger students.

This move follows a May warning from the Department of Health and Human Services, which issued the first-ever Surgeon General's advisory on the harms of screen use, urging parents to limit children's screen time.

An FCC official told reporters the review questions whether the program still fulfills its original mission and if continued funding aligns with congressional objectives.

The agency is soliciting public comment on legal and policy considerations for evaluating children's screen time, safeguarding children, and empowering parents, guardians, and teachers in decisions regarding subsidized internet access.

The E-Rate program is financed by fees collected from consumers via a "Universal Service Fee" on monthly phone bills, which telecom companies pay.

This scrutiny comes after the agency voted in September to end government subsidies for wireless internet on school buses, which had provided $48 million in 2024 to fund Wi-Fi for students to do homework during commutes.