A Lot Going On: What’s the Latest with E-Rate?
At HWC Consultants, we assist schools and school districts, pre-K and Head Start Programs, and libraries with applying for the E-Rate program. In this blog post, we will review the latest E-Rate news you need to know: the new funding year application window opening, the start of a new Category Two budget cycle, the highly anticipated Federal Communications Commission (FCC) vote on school bus Wi-Fi and hotspots, and the impact of the government shutdown on E-Rate funding.
E-Rate FY2026 Application Window Opens
It’s that time of year again! The E-Rate application window officially opened July 1, 2025 for the 2026-27 Funding Year. HWC Consultants help schools and libraries navigate the entire process. From preparing your organization for its annual filings, to tracking reimbursements, we handle it all: applications, service provider coordination, compliance requirements and more. We make sure you stay eligible, on time, and fully funded. Click here to contact us and learn how we can support you with your FY2026-27 application!
New Category Two Five-Year Budget Cycle Starts
The 2026-27 Funding Year marks the beginning of a brand-new, five-year cycle for Category Two budgets. As a reminder, Category Two funding can be used not only for network infrastructure upgrades like switches, access points, and cabling, but also for Managed Internal Broadband Services (such as third-party managed IT services) and Basic Maintenance of Internal Connections eligible equipment.
New Category Two Multipliers Announced
Your E-Rate Program Category Two budget is based on student count (for schools) or square footage (for libraries), available to spend over the five-year budget period. Funds rollover from year to year within the budget period, to be used however you would like. The Universal Service Administrative Company (USAC) has announced the Category Two multipliers for the five-year 2026-2030 cycle. The below multipliers are used to calculate your Category Two budget:
$201.57 per student
$5.43 per square foot
$30,175 funding floor
Click here to contact us for help with calculating your Category Two budget or to explore how our support can benefit you during the upcoming 2026-27 Funding Year.
FCC Removes Funding for School Bus Wi-Fi and Hotspots
On September 30, 2025, the FCC voted 2-1 to remove both school bus Wi-Fi and at-home internet hotspot services from eligibility for E-Rate program funds. USAC has been directed to deny all pending E-Rate funding applications for these services. The agency determined that bus Wi-Fi and hotspots fall outside of the core scope of the E-Rate program, which is to fund off-campus connectivity.
Impact of Government Shutdown on E-Rate Funding
The federal government has entered a shutdown, suspending most operations of the FCC. However, the non-profit administrator of the E-Rate program, USAC, will remain fully operational during the shutdown, as it is not a federal agency. This decision keeps E-Rate funding and FY26 application submissions open and active without any interruptions.
HWC Consultants is Here To Help
If you have any questions regarding E-Rate or getting your FY26 application ready, let us know by clicking the button below.