Topics Covered in this Guide

E-Rate 101

What is E-Rate?

E-Rate, also known as the Schools and Libraries Program of the Universal Service Fund, is a federal program in the United States that provides discounts on telecommunications and internet services to eligible schools and libraries. The program was established as part of the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company (USAC), under the oversight of the Federal Communications Commission (FCC).

Who is eligible to apply?

The E-Rate program provides discounts on broadband and telecommunications services to eligible schools and libraries. Eligible participants include:

  • Public and most non-profit K-12 schools
  • All public and many private libraries
  • Groups of schools and libraries, such as consortia, districts, and systems
  • Tribal libraries

Schools and libraries must meet statutory definitions outlined by USAC to be eligible for support and may not operate as for-profit businesses. Schools with endowments exceeding $50,000,000 are also not eligible. If demand for E-Rate money is greater than the available funds, funding is allocated first to the highest poverty schools and libraries.