The government-administered Lifeline is designed to make the Internet more affordable, but Ajit Pai's FCC has kneecapped the program.
This move threatens to leave millions of Americans, particularly from communities of color, without the opportunities that come with connectivity.
FCC Chairman Ajit Pai proposed the package, which allocates $64 million to immediate rebuilding efforts to restore existing communications networks in Puerto Rico and the U.S. Virgin Islands.
New York's attorney general says the push represents a struggle between "Big Telecom versus the American people."
The E-Rate program has proven successful in allowing students access to fast Internet speeds, but its future is uncertain.