UNIVERSAL SERVICE FUND - SCHOOLS and LIBRARIES

The schools and libraries universal service support program, commonly known as the E-Rate program, helps eligible schools and libraries, and consortia (comprised of eligible schools and libraries) to obtain affordable broadband services, internal con

The purpose of the E-Rate program is to provide financial assistance to eligible schools, libraries, and consortia of eligible schools and libraries in the form of discounts to obtain affordable broadband Internet access, telecommunications services, internal network connections, basic maintenance of internal connections, and managed internal broadband services. In 2024, the Commission launched the Schools and Libraries Cybersecurity Pilot Program (Pilot or Pilot Program), a three-year program, administered by the Universal Service Administrative Company (USAC) under the oversight of the FCC.

Schools must meet the statutory definition of elementary and secondary schools as defined in 20 U.S.C. § 7801(18) and 20 U.S.C. § 7801(38). Libraries must meet the statutory definition of library or library consortium found in the Library Services and Technology Act (LSTA) under 20 U.S.C. § 9122, and must be eligible for assistance from a state library administrative agency under that Act. In 2021, the Commission modified its definition of library to include Tribal libraries, clarifying that Tribal libraries are eligible for E-Rate support. Schools and libraries may not operate as for-profit businesses. Schools with endowments exceeding $50,000,000 are also not eligible.

Elementary and secondary public and private schools; public, academic, research, and private libraries; consortia of eligible schools and libraries.

Elementary/Secondary Education, Libraries/information/Statistics, Communications E-Rate support provides beneficiaries with discounts on the costs of eligible telecommunications services, broadband Internet access, internal network connections, managed internal broadband services, and basic maintenance of internal connections. The E-Rate program discount matrix governs the amount of funding eligible schools, libraries, and consortia are eligible to receive based on the percent of students in the school district eligible for the National Free and Reduced School Lunch Program and whether the entity is located in a rural or urban area. The discounts range from 20 to 90 percent of the costs of eligible equipment and/or services.

The Commission issues an Eligible Services List (ESL) each year identifying the services and equipment that are eligible for support. End-user devices such as computers, tablets, cell phones and display screens are not eligible for support. Voice services, such as mobile and landline telephone service, are not eligible for support. The E-Rate program does not provide support for most off-campus services, and E-Rate applicants are, therefore, usually required to cost-allocate out of their funding requests any portion of eligible services used off-campus.

Funding applications (FCC Form 471) are generally submitted between January and March before the start of the upcoming funding year. The funding year starts July 1 and ends June 30 of the following year. Applicants must reapply for E-Rate funding each year. Recurring services must be delivered by the end of the applicable funding year (i.e., June 30), while non-recurring services must be delivered or installed by September 30 following the close of the funding year. The last date to invoice (FCC Form 472 or 474) is generally October 28 for recurring services and January 28 for non-recurring services. Some deadlines can be extended in certain limited circumstances.

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 2 CFR 200, Subpart E, Cost Principles does not apply to this program. Applicants prepare for competitive bidding, conduct competitive bidding by requesting bids for eligible equipment and services (FCC Form 470), evaluate bids and select a service provider. Applicants must select the most cost-effective service offering using price of the eligible equipment and services as the primary factor. Then, they submit a funding application (FCC Form 471). Funding requests that are approved will be awarded through a Funding Commitment Decision Letter (FCDL). The applicant that receives an FCDL must then notify USAC and certify that the billed entity and/or the eligible entities that it represents is receiving, or has received, service in the relevant funding year from its named service provider(s) (FCC Form 486). After equipment or services have been delivered, either the applicant or the service provider may initiate invoicing to receive funds by submitting a request for reimbursement (FCC Form 472 or FCC Form 474) to USAC.

Neither the FCC nor the Administrator of the E-Rate program (the Universal Service Administrative Company or USAC) selects proposals. Funds are available to all eligible applicants that comply with program rules, including specific competitive bidding requirements. This includes the requirement that the applicant select the most cost-effective bid with price being the primary factor.

USAC reviews each funding application to ensure compliance with program rules and procedures. The competitive bidding, program application and other required program processes described herein are governed by the FCC's rules at 47 CFR Section 54.500 et. seq. and associated FCC Orders for the E-Rate program. After a submitted application undergoes an E-Rate program review, the applicant will receive a FCDL providing the total amount of approved support for each funding request or indicating that their funding request has been denied.

The window to submit funding applications (FCC Form 471) is generally between January and March before the start of the funding year (July 1). The FCC E-Rate administrator's website will post an announcement about the upcoming application filing window and deadline. Generally, the application filing dates are announced toward the end of the calendar year preceding the opening of the new funding window. The FCC's E-Rate program administrator is the Universal Service Administrative Company (USAC).

Other. The Commission has not set a specific date range for funding decisions, but has a program target to encourage efficient processing of program applications. The target is for USAC to issue funding commitments or denials for all "workable" funding requests by September 1st of each funding year. "Workable" means that a funding request is filed timely and is complete, with all necessary information, to enable a USAC reviewer to make the appropriate funding decision, and the applicant, provider, and any consultants are not subject to investigation, audit, or other similar reason for delay in a funding decision.

60 days. An appeal of an E-Rate program decision or request for waiver of the E-Rate rules must be filed within 60 days of the date of an action or decision by USAC.