Internet connectivity has become a critical resource for teaching and learning. The Common Core State Standards (CCSS) is a prime example, with schools expected to implement online assessments and use online resources for instruction. Yet there is little known about the extent to which local education agencies (LEAs) and schools are taking advantage of policies that subsidize spending on internet connectivity. This article assesses the gaps in LEA access to subsidies for internet connectivity provided under the Federal Communication Commission's E-Rate program. This analysis is situated in California, an early-adopting state of the CCSS and one of the largest recipients of E-Rate subsidies. This article focuses on Category 2 subsidies earmarked for building high-density, wireless internal connectivity networks necessary for supporting multi-user, online testing in schools. Drawing on longitudinal data from the 2006-07 to 2016-17 school years, the growing LEA demand for Category 2 subsidies following California's adoption of the CCSS in 2010-11 is documented. At the same time, there are notable gaps in LEA applications and funding for these subsides across attributes such as enrollment size, rural location, per-pupil revenues, prior success in funding, and for LEAs with lower enrollments of free and reduced-price lunch eligible students. In further analysis, this article shows that LEAs that were denied Category 2 subsidies incurred greater spending on non-capitalized equipment post-CCSS adoption and experienced a decline in ELA and math test scores that started even prior to the denial of funding for Category 2 subsidies, suggesting a somewhat challenging transition to the CCSS. However, unfunded LEAs did not perform as poorly in ELA and math once online testing for the CCSS started. This article discusses how the FCC's Modernization Order has addressed funding gaps in E-Rate and considerations for future reforms to the program.