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Program / E-Rate
E-Rate (Schools and Libraries Program)
A Universal Service Fund discount program that lowers the cost of broadband and internal connections for eligible schools and libraries. VerisGov maps the structure and keeps the moving parts current.
At a glance
- Program
- Schools and Libraries Universal Service support program (E-Rate).
- Administering agency
- Federal Communications Commission (FCC) sets policy; the Universal Service Administrative Company (USAC) administers under FCC oversight.
- Statutory authority
- Telecommunications Act of 1996; Section 254 of the Communications Act of 1934, as amended.
- Funding mechanism
- Universal Service Fund discount, a price reduction funded by carrier contributions, not appropriations and not a grant or loan.
- Money flow
- Applicants get discounted bills from service providers; USAC reimburses providers or applicants from the Universal Service Fund for the discounted amount.
- Who has a stake
- Eligible K-12 schools and school districts, public and private nonprofit libraries and library systems, and the service providers that bill them.
What it is
E-Rate, formally the Schools and Libraries Universal Service support program, is a discount mechanism, not a grant program. Congress created it in the Telecommunications Act of 1996, and it operates under Section 254 of the Communications Act, which directs the Federal Communications Commission to make advanced telecommunications affordable for schools and libraries. The FCC sets the rules; the Universal Service Administrative Company (USAC) administers the program under FCC supervision.
The money comes from the Universal Service Fund (USF), which is supported by mandatory contributions from telecommunications carriers, not from annual congressional appropriations. Eligible schools and libraries do not receive cash. Instead they receive discounts on the cost of eligible services, with the deepest discounts going to applicants in high-poverty and rural areas. The discount is calculated from a matrix based on poverty level and urban or rural location.
Supported services fall into two categories. Category One covers the connectivity that reaches the building, including telecommunications and internet access. Category Two covers the equipment and services that distribute connectivity inside the building, such as internal connections, basic maintenance, and managed broadband, subject to a multi-year per-applicant budget. Program demand is met up to an annual cap set by the FCC and indexed over time.
Key facts
- Program Schools and Libraries Universal Service support program (E-Rate).
- Administering agency Federal Communications Commission (FCC) sets policy; the Universal Service Administrative Company (USAC) administers under FCC oversight.
- Statutory authority Telecommunications Act of 1996; Section 254 of the Communications Act of 1934, as amended.
- Funding mechanism Universal Service Fund discount, a price reduction funded by carrier contributions, not appropriations and not a grant or loan.
- Money flow Applicants get discounted bills from service providers; USAC reimburses providers or applicants from the Universal Service Fund for the discounted amount.
- Who has a stake Eligible K-12 schools and school districts, public and private nonprofit libraries and library systems, and the service providers that bill them.
What it funds
- Category One connectivity to the building: telecommunications and internet access
- Category Two internal connections that distribute broadband within a school or library
- Basic maintenance of internal connections and managed internal broadband services under Category Two
- Special construction of fiber and other facilities to reach eligible schools and libraries
Always current
What VerisGov keeps current
The facts above hold for years. These move, and they are where most of the work is. The engine tracks each one against its government source, so what you see is the live state, not a snapshot that quietly went out of date.
- The current annual funding cap and how it has been adjusted, since it is indexed and changes over time
- The current Category Two per-applicant budget formula and multi-year budget cycle
- Eligible-services-list updates that add or remove what the discount covers each funding year
- Application-window dates and the current discount matrix and eligibility rules
How VerisGov covers it
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The verified corpus becomes a navigator, dashboard, report, dataset, or custom build, shaped to how your team works and refreshed as the program moves.
Pinned to records published by
- Federal Communications Commission (FCC)
- Universal Service Administrative Company (USAC)
Answers
Frequently asked questions
Is E-Rate a grant?
No. It is a discount. Eligible schools and libraries receive a percentage off the cost of eligible services rather than a cash award, and the providers are reimbursed from the Universal Service Fund.
Where does the money come from?
From the Universal Service Fund, which is supported by required contributions from telecommunications carriers. It does not depend on annual appropriations from Congress.
What is the difference between Category One and Category Two?
Category One funds the connectivity that reaches the building, such as internet access and telecommunications. Category Two funds the equipment that distributes that connectivity inside the building, like internal wiring and Wi-Fi, subject to a per-applicant budget.
How does VerisGov help with E-Rate?
VerisGov maps the durable structure, the statute, the FCC and USAC roles, the USF discount mechanism, and the two service categories, and keeps the volatile details current: the funding cap, Category Two budgets, eligible-services updates, and application windows. Every fact is pinned to its source.
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