How does E-Rate Work? What It Is and How Schools Qualify

It’s no secret schools and libraries can face big challenges when it comes to planning for IT projects – shifting funding sources, district priorities, changing budget dynamics.

Fortunately, the U.S. government’s E-Rate program — administered by the Universal Services Administrative Company (USAC), an independent nonprofit corporation — provides significant funding to help those organizations achieve and maintain adequate internet connectivity and security.

How Does E-Rate Work?

Administered by the Universal Service Administrative Company (USAC), E-Rate provides funding discounts to eligible schools and libraries, particular those in underserved areas, to help them afford access to high-speed Internet access and telecommunications services. E-Rate funding covers a range of technology expenses, categorized into two main service types:

1. Category One (C1) – Covers services needed to bring internet connectivity to a school or library, including broadband, fiber-optic networks, and basic internet access.
2. Category Two (C2) – Supports the internal infrastructure needed for Wi-Fi and connectivity within the school, including routers, switches, access points, and security services.

The funding is distributed based on the level of need, with higher discounts given to institutions in low-income areas or rural regions.

Who Qualifies for E-Rate Funding?

Public and private K-12 schools, libraries, and their groups must meet specific eligibility requirements set by the FCC. These are calculated based on the portion of students eligible for the National School Lunch Program and the district’s rural or urban status.

• Schools must be public or private K-12 institutions that operate as nonprofit entities. They must provide primary or secondary education and cannot be for-profit.
• Libraries must be independent or part of a public library system and must be eligible for assistance from their respective state library administrative agencies.

How Are Discounts Determined?

E-Rate discounts range from 20% to 90% for Category One services and 20% to 85% for Category Two services. These are calculated based on the portion of students eligible for the National School Lunch Program and the district’s rural or urban status.

1. The Percentage of Students Eligible for the National School Lunch Program (NSLP) – Schools with higher numbers of low-income students qualify for larger discounts.
2. Location – Rural schools and libraries may receive higher discounts due to increased infrastructure costs.

How to Get E-Rate Funding

It's important to note that getting E-Rate funding isn't automatic -- to get E-Rate funding, you first have to apply for E-Rate funding! Applying for E-Rate funding involves several steps and requires careful planning. The annual process typically follows this timeline:

1. Register with USAC –Schools must obtain an Entity Number and a School Profile Number.
2. File FCC 470: Request for Services – This form is used to announce the services you are seeking from services providers. It must be posted on the USAC’s E-Rate Productivity Center (EPC) portal.
3. Evaluate Bids and Select Service Providers – Schools should review bids from services providers and select the most cost-effective option that meets their needs.
4. File FCC 471: Funding Request – Once a provider is chosen, schools submit this form to apply E-Rate discounts. It should be submitted online through the EPC portal.

5. Wait for Funding Decision – After reviewing the application, USAC will issue a decision.

Who E-Rate Benefits

E-Rate has transformed how schools and libraries provide digital access, bridging the connectivity gap for millions of students and patrons. By ensuring that even the most remote and underfunded institutions have access to broadband internet, the program supports equitable learning opportunities, digital literacy, and the integration of modern educational tools.

Closing the Digital Divide

For over 20 years Kajeet has been committed to helping schools and libraries as they work to connect the nearly 25 percent of Americans without access to adequate Internet access at home. From providing WiFi hotspots, LTE-embedded devices, private wireless networks, and school bus WiFi, Kajeet ensures that every student has secure and reliable internet access both on and off campus.

If your school or library is looking to leverage E-Rate funding to support your student connectivity needs, Kajeet can guide you through the process and provide innovative, cost-effective solutions.