The E-Rate Program for Schools and Libraries
E-Rate is a federal program that lowers what eligible schools and libraries pay for internet and network connectivity. Discounts range from 20 to 90 percent of eligible costs. The application follows strict rules and fixed deadlines, so it pays to understand the process before you start. This page covers what the program is, who qualifies, what it funds, and how the application works.
What is the E-Rate program?
E-Rate is the common name for the federal Schools and Libraries Program. It gives eligible schools and libraries discounts on internet access, telecommunications, and the equipment that connects them. Its goal is to keep schools and libraries across the U.S. connected to the internet and its resources. Source: USAC
The federal Universal Service Fund (USF) pays for the program. The Universal Service Administrative Company (USAC) runs it under the Federal Communications Commission (FCC). Applicants don't receive a check. The discount applies to eligible services, and the applicant pays the remaining share.
Who qualifies for E-Rate?
Eligible K-12 schools and libraries can apply for E-Rate discounts. Groups can also apply together, including school districts, library systems, and consortia.
A few rules shape eligibility:
Schools
Schools must be nonprofit, including public charter schools. For-profit schools and schools with endowments over $50 million do not qualify.
Libraries
Libraries must meet the federal Library Services and Technology Act definition. Their budgets must also be fully separate from any school's budget.
The group option matters for organizations with more than one site. A district or library system can request discounts for multiple locations instead of filing site by site. USAC publishes the full eligibility criteria on its website. Source: USAC
What can E-Rate funds be used for?
E-Rate discounts apply to specific categories of services, not every technology purchase. The program splits eligible services into two categories:
Category One
Connectivity to your buildings, including internet access and data transmission services.
Category Two
Equipment and services that distribute connectivity inside your buildings. Examples include routers, switches, wireless access points, and their installation and maintenance.
The FCC releases an Eligible Services List each funding year. It defines exactly what qualifies, and it can change from year to year. Review the current list before planning a request around a specific service.
How much of a discount can you get?
E-Rate discounts are not flat. They scale with need, based on two factors:
20% to 90%
Category Two: 20% to 85%. Tribal libraries can receive up to 90%.
Two factors set your discount
- Poverty level: the percentage of students eligible for the National School Lunch Program (NSLP).
- Location: whether the school or library is in an urban or rural area.
Under current rules, Category One discounts range from 20 to 90 percent of eligible costs. Category Two discounts range from 20 to 85 percent, and Tribal libraries can receive up to 90 percent. Higher-poverty applicants receive the largest discounts. At lower poverty levels, rural applicants receive a higher discount than urban ones. USAC's discount matrix shows exactly where each combination lands.
How does the E-Rate application process work?
The application follows the same sequence each funding year. USAC lays out these steps for applicants:
- 1 Create an EPC account
- 2 Competitive bidding Form 470
- 3 Select a service provider
- 4 Apply for discounts Form 471
- 5 Application review
- 6 Start services Form 486
- 7 Invoicing Form 472 / 474
The steps
Create an EPC account. EPC is USAC's online portal for filing forms and tracking requests.
Start competitive bidding. File FCC Form 470 so service providers can respond. You must wait at least 28 days after certifying it before you choose a provider.
Select a service provider. Evaluate the bids you receive. Price of the eligible services must be the most heavily weighted factor.
Apply for discounts. File FCC Form 471 during the annual filing window to request discounts.
Application review. USAC reviews each application and issues a funding decision.
Start services. File FCC Form 486 to confirm that services have started and that you comply with the Children's Internet Protection Act.
Invoicing. USAC pays the discount through discounted bills from your provider (FCC Form 474) or through reimbursement to you (FCC Form 472).
Source: USAC
When is the E-Rate filing deadline?
E-Rate runs on an annual funding-year cycle. The Form 471 filing window opens and closes on fixed dates, and those dates change each year. Because of the 28-day bidding period, you must certify your Form 470 at least 28 days before the window closes. If you miss the window, you generally wait for the next funding year. USAC posts current dates on its Upcoming Dates page.
Do you need an E-Rate consultant?
No. Applicants are not required to hire a consultant, and many schools and libraries file on their own. USAC offers free training, guides, and webinars for applicants. The bidding rules and forms are detailed, so reviewing those resources early can prevent costly mistakes.
Questions about E-Rate?
Cost Cutters is an AT&T Platinum Partner that provides business internet and connectivity services. To learn more about our work with education organizations, see the schools and libraries we serve or explore our services.
Frequently Asked Questions
Not at this time. E-Rate is active, and USAC continues to run it on its annual cycle. On June 27, 2025, the U.S. Supreme Court upheld the Universal Service Fund, which pays for E-Rate, in a 6-3 decision. The ruling preserved the FCC's authority to collect and distribute those funds. In 2026, the FCC opened a formal review of the program's scope, discount structure, and eligible services. None of the changes it proposes are in effect yet. USAC's website is the best source for updates.
Eligible schools and libraries apply for discounts on qualifying connectivity services. The discount lowers the cost of those services instead of arriving as a cash payment. The process has seven steps: an EPC account, competitive bidding, provider selection, applying for discounts, review, starting services, and invoicing. Your discount depends on your poverty level and your urban or rural status. The Universal Service Fund pays for the program, and USAC runs it under the FCC.
Start by creating an account in USAC's EPC portal. Next, file FCC Form 470 to open competitive bidding, then wait at least 28 days before you choose a provider. After you choose one, file FCC Form 471 during the filing window to request discounts. USAC reviews the application and issues a funding decision before services and invoicing move forward. USAC's website has step-by-step guidance for each form.
E-Rate funding is the discount that eligible schools and libraries receive on internet access, telecommunications, and related equipment. It comes from the Universal Service Fund, and USAC runs it under the FCC. It isn't a grant you can spend freely. It lowers the cost of specific eligible services by 20 to 90 percent, depending on the service category, community need, and location.
E-Rate funds apply to eligible internet access, data transmission services, and internal network equipment. Category One covers connectivity to your buildings. Category Two covers equipment and services that distribute connectivity inside them, such as routers, switches, and wireless access points. The program does not cover every technology purchase. The FCC's annual Eligible Services List defines exactly what qualifies.
E-Rate is the federal Schools and Libraries Program. It discounts internet and network connectivity for eligible schools and libraries. Its goal is to keep schools and libraries across the country connected to the internet and its resources. The Universal Service Fund pays for it, and USAC runs it under the FCC.
Two factors set your discount. The first is the percentage of students eligible for the National School Lunch Program, which reflects community poverty level. The second is whether your site is urban or rural. Under current rules, Category One discounts range from 20 to 90 percent. Category Two discounts range from 20 to 85 percent. USAC's discount matrix shows where each combination lands.
Not sure how to take advantage of these funds?
Contact Cost Cutters for additional information about the E-Rate program.