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Federal officials have dramatically overhauled the E-rate program to prioritize expanded support for broadband and wireless connectivity, through the approval of a series of changes that have been widely hailed by education, library, technology, and industry groups as much needed and long overdue.

The capstone came last month, when the Federal Communications Commission approved a $1.5 billion annual funding increase for the program, which subsidizes schools鈥� and libraries鈥� purchases of telecommunications services.

鈥淭he increase in support is significant. It is justified. And it is smart,鈥� FCC Chairman Tom Wheeler said in a statement accompanying the decision. 鈥淚n the 18 years since the E-rate was established, technology has evolved, the needs of students and teachers have changed, and basic connectivity has become inadequate.鈥�

The commission voted to raise the E-rate鈥檚 annual spending cap from $2.4 billion to $3.9 billion and approved a series of potentially significant rule changes in a contentious 3-2 vote Dec. 11 that broke down along partisan lines. Those moves followed the FCC鈥檚 July decision to overhaul the mechanics of the E-rate to prioritize broadband and Wi-Fi connectivity while phasing out support for older technologies.

The new money for the program will come from increased fees on telecommunications providers. Those charges are typically passed on to consumers via their phone bills. The FCC estimates that most U.S. households will pay an additional $1.90 per year, per phone line.

The new aid is expected to begin flowing to schools and libraries this coming summer. Most of the new rules approved by the commission鈥攊ncluding several changes that could benefit rural schools, which continue to struggle with access to fiber-optic cable, generally regarded as the best means of providing high-speed connections鈥攚ill take effect in 2016.

In the short term, experts on broadband service for schools say, the most noticeable changes will likely result from the program鈥檚 new emphasis on supporting schools鈥� internal Wi-Fi needs, which were neglected under the program鈥檚 previous structure. With the rise of online testing, 1-to-1 student computing, and digital instruction, improving schools鈥� Internet infrastructure has become a national priority.

Currently, 63 percent of public schools in the United States, serving more than 40 million students, are unable to deliver the level of bandwidth that the administration of President Barack Obama now recommends, according to the FCC.

Rising Digital Demand

A wide range of groups applauded the FCC鈥檚 moves to modernize its rules and dedicate more money to the E-rate program.

鈥淭he clear and compelling voice of America鈥檚 public school districts was heard,鈥� Thomas J. Gentzel, the executive director of the National School Boards Association, based in Alexandria, Va., said in a statement.

For years, ed-tech advocates have pushed for more E-rate money, noting that demand has far exceeded available funds.

Prior to last month鈥檚 increase, the E-rate鈥檚 annual spending cap was frozen for years at $2.25 billion, and adjustments for inflation only began in 2010. Mr. Wheeler and his fellow Democrats on the commission, Mignon Clyburn and Jessica Rosenworcel, voted in favor of the change. Opposing the spending-cap increase were Republicans Ajit Pai and Michael O鈥橰ielly.

While affluent families may not notice the small increases in their phone bills, 鈥渇amilies in middle America are sick of being nickeled and dimed by Washington politicians,鈥� Mr. Pai said in a dissenting statement.

Mr. Pai also worried that the new aid will end up going largely to meet schools鈥� internal Wi-Fi needs, rather than helping schools with poor or nonexistent connections to the Web. He questioned whether the changes will benefit rural schools, noting that no specific safeguards to ensure that the 鈥渇iber gap鈥� is closed were part of the FCC鈥檚 December rule-making.

And relaxing the requirements for how E-rate applicants must demonstrate they have secured matching funds from other sources could lead to waste and fraud, Mr. Pai said.

In an interview with 91制片厂视频 Week, Patrick R. Halley, the associate chief of the FCC鈥檚 wireline-competition bureau, who helped lead the recent E-rate modernization efforts, minimized such concerns.

Schools鈥� requests for aid for internal wireless-network-related equipment should be paid for with E-rate money that was already allocated prior to the December spending-cap increase, Mr. Halley said. Phasing out support for 鈥渓egacy鈥� technologies, such as phone lines, pagers, and email services, should free up $3.5 billion over the next five years, he said, and the commission has already ordered that $2 billion in existing reserves go to support internal Wi-Fi projects.

While none of the new E-rate money will be set aside specifically to help rural districts access external high-speed broadband networks, Mr. Halley acknowledged, the combination of more overall money for the program and new rule changes should help.

For example, schools have historically been prohibited from using the E-rate to build their own fiber-optic networks. That rule has been a particular problem for rural districts, more than one-fourth of which can鈥檛 find more than one bidder for broadband-connectivity services on the private market, according to a recent survey by the Consortium for School Networking, a Washington-based association for school technology officials.

The new rules will ease that prohibition by allowing for 鈥渟elf-provisioning鈥� when no other affordable high-speed option is available.

Beginning in 2016, the Universal Service Administrative Co., which administers the E-rate, will also publish the prices and terms that providers charge schools and libraries for program-supported services. Given the 鈥渨ildly different鈥� prices that even neighboring schools have ended up paying for similar services under the current system, Mr. Halley and others said the change would bring new transparency to the program.

鈥楳assive Upgrade鈥� Predicted

The application window for requests for E-rate funding for the 2015-16 school year will be open from January to March of 2015.

John Harrington, CEO of Funds for Learning, an Edmond, Okla., company that consults districts on the E-rate, said schools that had been skeptical that new federal aid would arrive are now eagerly preparing revamped applications.

鈥淎 lot of projects really are shovel-ready,鈥� he said.

Many school officials鈥� immediate focus, Mr. Harrington said, will be improving their on-campus wireless networks, which he described as the source of the bottleneck that many teachers and students experience in the classroom.

Technical rule changes that will provide greater flexibility for large up-front capital expenditures will help get projects moving, he said, as will a new rule allowing E-rate-financed efforts to begin as early as April of a given funding year鈥攂efore the money has even been approved.

The FCC鈥檚 actions are a big step in the right direction, Mr. Harrington said, but establishing high-speed external connections for all U.S. schools could still take time.

鈥淭hey won鈥檛 be able to get it all at once,鈥� Mr. Harrington said. 鈥淏ut over the next few years, we will see a massive upgrade in schools鈥� Internet connections.鈥�