Yes, that is exactly right. Public school districts can no longer use E-Rate (federal money) funds to pay for web site hosting or web site management systems. The FCC decided to re-allocate $5 billion in E-Rate funds for a 5-year wifi roll-out plan for all public school districts.
You can read more about the FCC's E-Rate Modernization Order :https://www.fcc.gov/page/summary-second-e-rate-modernization...