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What is E-Rate

What Is the E-Rate Program?

The E-Rate Program, also known as the Schools and Libraries Program of the Universal Service Fund, is a federal initiative that helps eligible schools and libraries across the United States obtain affordable internet access and telecommunications services. Funded by the FCC and administered by USAC, E-Rate provides critical support to ensure all students, regardless of location or income, have access to modern technology and learning tools.

Each year, schools can apply for discounts that significantly reduce the cost of services and equipment that support digital learning. These discounts can range from 20% to 90%, depending on the institution’s location and student population.

Coverage

What Does E-Rate Cover?

E-Rate funding applies to two major categories of technology infrastructure and services.

Internet access infrastructure

Category 1: Internet Access & Broadband Services

This includes:

  • Internet access
  • Data transmission services including fiber and cable
  • Wide Area Network connections
  • Lit or dark fiber installations

Category 1 supports the external connections that bring internet service into a school or library facility.

Internal network equipment

Category 2: Internal Connections & On-Premise Equipment

This includes:

  • Antennas, connectors, and related broadband components
  • Cabling and caching
  • Firewall services and firewall components
  • Racks, routers, and switches
  • UPS and battery backup systems
  • Wireless access points and controller systems
  • Software that supports high-speed broadband distribution in school buildings and libraries

Category 2 covers the internal connections needed for broadband connectivity within schools and libraries.

Understanding the E-Rate Discount Matrix

Your school’s E-Rate discount is calculated using the E-Rate discount matrix, which takes into account:

  • The percentage of students eligible for the National School Lunch Program (NSLP)
  • Whether the school is located in an urban or rural area

Schools with higher percentages of low-income students and those in rural areas typically receive the highest discounts, sometimes up to 90% for Category 1 services and 85% for Category 2.

% of Students Eligible for NSLP Urban Discount (Category 1 / 2) Rural Discount (Category 1 / 2)
1% – 19%20% / 20%25% / 25%
20% – 34%40% / 40%50% / 50%
35% – 49%60% / 60%70% / 70%
50% – 74%80% / 80%80% / 80%
75% – 100%90% / 85%90% / 85%

Let’s Get Started

Have questions about E-Rate funding? Our specialists are here to help. Reach out today to learn how we can simplify the process and maximize your school’s funding.

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