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The now-repealed Obama administration regulations treated Internet service providers like a utility, preventing them from charging different rates for higher loading speeds or blocking access to specific websites.
The E-Rate program has proven successful in allowing students access to fast Internet speeds, but its future is uncertain.