E-Rate is a funding program that helps schools and libraries obtain affordable internet access and telecommunications services. Established in 1996, the E-Rate program is administered by the Universal Service Administrative Company (USAC).

The E-Rate program distributes up to $4.15 billion annually across the U.S. to ensure schools and libraries stay connected in a digital-first world.

Qualified applicants for the E-Rate program fall into two primary categories: schools and libraries. To receive annual reimbursements, an organization must apply for the E-Rate program every year.

Eligible schools include:

• Public K-12 schools and school districts, including charter schools.

• Private, non-profit K-12 schools, including parochial schools, with an endowment of less than $50 million. 

• Certain non-traditional or alternative education programs, including Pre-K and Head Start. These programs vary state by state. Check eligibility

Eligible libraries include:

• Public libraries

• State-designated private libraries

Additionally, schools and libraries can apply for the E-Rate Program as a consortium rather than individually.

Services that can be reimbursed through the E-Rate program are divided into two categories. 

Category One services cover Internet access, and include:

• Asynchronous Transfer Mode (ATM)

• Broadband over Power Lines

• Cable Modem

• Digital Subscriber Line (DSL)

• DS-1 (T-1), DS-3 (T-3), and Fractional T-1 or T-3

• Ethernet

• Integrated Services Digital Network (ISDN) — note: dedicated voice channels on an ISDN circuit are no longer eligible

• Leased Lit Fiber

• Leased Dark Fiber (including dark fiber IRUs for a set term)

• Self-Provisioned Broadband Networks (applicant owned and operated)

• Frame Relay

• Multi-Protocol Label Switching (MPLS)

• OC-1, OC-3, OC-12, OC-n

• Satellite

• Switched Multimegabit Data Service

• Telephone dial-up

• Wireless

Category Two services cover the equipment necessary to bring broadband connectivity to the school or library and some third-party services necessary to maintain it.

There are three Category Two subgroups: 

Internal Connections are physical and software components that build and support your internal network, including: 

• Antennas, connectors, and related components

• Cabling

• Caching

• Firewall services and components (when separate from basic firewall protection bundled with Internet access)

• Racks

• Routers

• Switches

• Uninterruptible power supply (UPS) / battery backup

• Wireless access points (LAN/WLAN)

• Wireless controller systems

• Supporting software, including bug fixes, security patches, and remote technical support or configuration

Managed Internal Broadband Services are third-party services for the operation, management, and monitoring of eligible equipment.

Basic Maintenance of Internal Connections for on-site repair and upkeep of eligible network hardware, including: 

• Wire and cable maintenance

• Configuration changes performed in person

You can learn more in USAC's eligible services list.

Schools and libraries can receive reimbursement for their broadband infrastructure end to end, from equipment or software needs, installation, monthly costs, and ongoing maintenance. 

Category One and Category Two E-Rate services that are covered include: 

Category One

• Monthly charges

• Construction, installation, and activation charges

• Software, electronics, and other equipment necessary for service functionality

• Maintenance and operation charges

Category Two: 

• Eligible hardware costs, including routers, access points, and cabling

• Supporting software, including right-to-use licenses, bug fixes, and security patches

• Managed service costs, including installation, activation, configuration, and training

• Routine maintenance, including wire/cable upkeep and configuration changes 

Broadband services that are NOT covered by the E-Rate program include: 

• In-building audio services, including VoIP and paging/intercom infrastructure

• Cabling for those audio services

• Cellular services

• Security and alarm services

• Device purchases, including computers (desktop and laptop), printers, and tablets. 

• Off-campus use of E-Rate-funded services

• Staff salaries and labor costs for applicant personnel

• Consulting services unrelated to installation and configuration 

• Applications, content, e-mail, and end-user devices as part of Internet access service

• Network management services, including 24-hour monitoring, as part of basic maintenance

• On-site technical support, unless cost-effectiveness is demonstrated

• Unbundled warranties

• Redundant backup circuits

The filing window for the E-Rate program is typically opened in mid-to-late January and closes sometime in late March to early April, with official dates often published in the fall beforehand. However, you can begin the competitive bidding process on or after July 1 annually by filing out the Form 470. 

Filing the Form 470 early will give you a leg up, as it triggers a 28-day competitive bidding period for new E-Rate contracts. This process must be completed before the Form 471 application is completed.. 

Check USAC’s Upcoming Dates page for the latest information.

The Form 470 kicks off the competitive bidding process. When it comes to E-Rate, that means it’s a public posting of the services and/or equipment that a school or library wants to buy. The form must give vendors at least 28 days to respond before a provider is chosen. 

The Form 471 is the actual E-Rate funding application that is filed after the bidding process ends and a vendor is chosen. This document describes the services a school or library is requesting and puts them into USAC’s system for review and E-Rate discount approval.

Yes, CIPA compliance is required. Applicants that are not CIPA compliant have a grace year to become compliant after their first E-Rate application.

Schools and libraries subject to CIPA may not receive E-Rate discounts unless they comply with three specific requirements:

1. Internet safety policies: Schools and libraries must certify that they have an Internet safety policy that addresses, among other things: access by minors to inappropriate Internet content, safety and security while using electronic communications like e-mail, and unauthorized use of a minor’s personal information. 

2. Technology protection measures: Schools and libraries must verify that they operate a technology protection measure (i.e., a filter) on all computers with Internet access. This protocol must block obscene visual content and, for computers accessed by minors, any content that is harmful to them. 

3. Public notice and hearing or meeting: Institutions must provide notice and hold at least one public hearing or meeting to discuss their proposed internet safety policies and technology protection measures. For private schools, “public notice” means notifying the appropriate constituent groups. 

For more detailed guidance on these three CIPA requirements, visit USAC.

Yes. The E-Rate program requires schools and libraries to conduct a fair and open competitive bidding process before selecting a service provider. Applicants are required to carefully consider all bids submitted, with heavy emphasis on cost-effective service offerings. 

However, an institution’s prior history with their current service provider, their specific institutional technology requirements, and their organizational preferences, can all be taken into account during this process. Read more about exceptions to the competitive bidding process.

The amount of E-Rate funding you receive depends on your organization’s discount rate, which can range from anywhere between 20 and 90%. 

The highest possible discount for Category One services is 90%, while the discount cap for Category Two services is 85%.

All applicants receive at least a 20% discount rate.

E-Rate discounts are determined by two primary factors: economic need and urban/rural status. 

• Economic need: Measured by the number of students supported by the National School Lunch Program or approved alternatives. If your school does not participate in one of those programs, we recommend using your financial aid application data to determine your E-Rate eligible student count. Libraries use their local school district’s student data to determine economic need. 

• Urban/rural status: A school or library is considered “urban” if it’s located in a Census-designated area of 25,000+ people. Rural applicants generally receive a higher discount than urban applicants at the same poverty level, but the rates converge at 80% or higher. Review USAC’s Discount Matrix for more detailed information on calculating discounts.

E-Rate’s Category One and Category Two services operate under very different funding structures.

• Category One has no budget. There's no cap on how much a school or library can request for Category One services. Discounts apply to whatever eligible services are requested, at the applicant's discount rate.

• Category Two runs on a fixed, five-year budget. Each school district or library system receives a pre-discount budget for the entire five-year cycle. For schools, this budget is determined by enrollment numbers; for libraries, it’s determined by square footage. This budget is locked in during the first year in the cycle and can be spent however the applicant chooses across the five years, but it can't be exceeded unless enrollment or square footage increases.  

Explore USAC’s Category Two budget guidance for full calculation rules.

Hiring an E-Rate consultant is not necessary, though applying for E-Rate, maintaining eligibility, and maximizing funding opportunities year to year can be complex. 

At HWC, we help organizations navigate the application process, identify eligible services, prepare documentation, maintain eligibility compliance, and maximize reimbursements. Through our knowledge and experience with E-Rate, we're able to significantly improve a school, library, or consortium's chance of securing E-Rate funding.