The Federal Communications Commission blocked nine companies from providing subsidized internet access to low-income families.
The companies were told by regulators that they cannot take part in the Lifeline Broadband Program, which has been around since 1985, after they had already been approved.
The program provides discounted phone and internet services for people in poorer communities who qualify. It allows them to access resources for jobs and education.
FCC officials plan to reconsider the participation of the nine companies within the program. The government entity said it will give them "additional time to consider measures that might be necessary to prevent further waste, fraud and abuse" in the program.