Paying for school technology

With pandemic-era support funding gone, most Illinois districts now pay for devices, networks, software, and cybersecurity from a mix of recurring federal formula funds, E-Rate discounts, state programs, and competitive grants. No single source covers everything, so the districts that keep their technology current usually combine several of them in a multi-year plan.

This guide collects the main funding sources available to Illinois K-12 districts, what each one can pay for, and where it stands today

Where things stand

September 2026

E-Rate remains the foundation for school connectivity and network equipment. For the 2026–2030 cycle, E-Rate’s Category Two budget multiplier increased by 20%.

Federal formula programs such as Title I and Title IV-A continue to support instructional technology. The US. Department of Education has confirmed those funds can pay for AI tools and training.

Illinois now offers competitive computer science funding alongside growing state and federal support for career and technical education.

Funding Sources

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Federal Funding Sources

Type: Federal (FCC/USAC) | Status: Active | Deadline: FY2027 Form 471 window opens early 2027 (dates to be announced)

E-Rate discounts the cost of internet access (Category One) and the network equipment that delivers it inside school buildings (Category Two): routers, switches, wireless access points, firewalls, cabling, and their installation and basic maintenance. Discounts range from 20% to 90%, based on student eligibility for free and reduced-price meals and on rural status.

For the FY2026–2030 cycle, the Category Two budget multiplier increased by 20%, an inflation adjustment, to $201.57 per student with a minimum of $30,175 per school. Because enrollment is declining in many districts, that doesn’t necessarily mean a larger budget than last cycle. The budget covers all five years, so districts can plan a multi-year network refresh.

E-Rate does not cover end-user devices such as laptops and tablets, or off-campus Wi-Fi hotspots and school bus Wi-Fi. The FY2027 Form 470 has been available since July 1, 2026. USAC will announce the Form 471 filing window, which usually opens in January and closes in late March or early April. The LTC’s E-Rate Support team can help with every step.

Make your voice heard. Districts across the country are sharing grassroots examples of how E-Rate funding for connectivity and network equipment affects their students through a current federal comment process. Support for E-Rate has been loud and clear, and many state and national organizations have created tools and resources to help schools and libraries advocate effectively. The LTC can help your district share its story.

Took part in the Emergency Connectivity Fund? That program has ended, but record-keeping, audit, and equipment rules still apply. See Emergency Connectivity Fund (ECF): What Still Applies.

Type: Federal pilot (FCC/USAC) | Status: Closed; not open to new participants | Deadline: N/A

This is not a funding source districts can apply for. The Schools and Libraries Cybersecurity Pilot Program is a three-year FCC pilot that pays for cybersecurity services and equipment only for the schools, libraries, and consortia selected in January 2025. Those participants are locked in, and no new participants are being added. Illinois has 57 active participants, and the pilot runs through 2029.

The pilot’s results may help decide whether cybersecurity becomes a permanent part of E-Rate. See the LTC’s Cybersecurity Pilot Program page for updates.

Type: Federal | Status: Active | Deadline: Ongoing (annual)

Title IV, Part A — the Student Support and Academic Enrichment program — includes an Effective Use of Technology (EUT) area that supports technology to improve academic achievement: devices, software, digital learning resources, and training to use them well. Districts receiving $30,000 or more must spend some of their funds on EUT.

One important limit: districts may spend no more than 15% of their EUT funds on technology infrastructure, which includes devices, equipment, and software. Title IV-A works best for technology tied to instruction and professional learning rather than large hardware purchases. It was level-funded at about $1.385 billion for FY2026, and the House’s FY2027 bill keeps it at that level.

Read our full guide: Title IV-A for Technology: The 15% Rule Explained covers what the 15% limit really covers, common misconceptions, and where federal funding stands.

Type: Federal | Status: Active | Deadline: Ongoing (annual)

Title I, Part A is the largest federal K-12 program, at about $18.4 billion a year. Schools running schoolwide programs (generally those with 40% or higher poverty) can use Title I for devices, software, and digital instructional materials when they are part of the school’s plan to raise achievement. Targeted assistance schools can use Title I for technology that serves the students identified for extra support.

Type: Federal guidance | Status: Active | Deadline: N/A

On July 22, 2025, the U.S. Department of Education issued a Dear Colleague letter on using federal grant funds with artificial intelligence. It confirms that existing federal formula and discretionary grant funds can pay for AI-powered instructional materials, AI-supported tutoring, and training educators to use AI tools responsibly, as long as the spending meets each program’s own rules.

The letter doesn’t add money, but it gives districts clear federal backing for budgeting AI tools and training under Title I, Title II-A, and Title IV-A.

Type: Federal | Status: Active | Deadline: Ongoing (annual)

IDEA Part B funds pay for the assistive technology devices and services that students with disabilities need under their IEPs. Federal law also lets districts use Part B funds for technology that teachers and related-services staff use for recordkeeping, data collection, and case management for the students they serve.

Districts may also set aside up to 15% of their Part B allocation for Coordinated Early Intervening Services, which can include training staff to use adaptive and instructional software with students who need extra academic or behavioral support.

Type: Federal (through ISBE) | Status: Active | Deadline: Ongoing (annual)

For districts with career and technical education programs, Perkins V funds can buy the equipment, software, and technology that keep CTE programs aligned with current industry standards, as identified in the district’s comprehensive local needs assessment. ISBE administers Perkins funds in Illinois. Funding for career and technical education is growing: Illinois’ FY2027 budget includes increased support for CTE, and federal FY2027 spending proposals include an increase for the Perkins V state grant.

Type: Federal | Status: Active | Deadline: Ongoing (annual)

The Rural Education Achievement Program gives eligible small and rural districts supplemental funds, plus the flexibility to spend them on any activity allowed under Titles I-A, II-A, III, and IV-A. That makes technology purchases and technology training allowable uses for qualifying rural districts.

Type: Federal (U.S. Department of Justice) | Status: Active (annual competition) | Deadline: FY2026 round closed August 11, 2026; next round expected in 2027

The School Violence Prevention Program funds school safety technology such as entry-control systems, emergency notification, and technology that speeds up coordination with law enforcement. The FY2026 competition offered about $73 million for roughly 200 awards of up to $500,000 over 36 months, with a 25% local cash match unless a waiver is approved.

Districts need an active SAM.gov registration before they can apply, which can take 30 days or more, so register well before the next round opens.

Read our full guide: COPS School Violence Prevention Program (SVPP) covers what it funds, who can apply, and a step-by-step plan to get ready for the 2027 round.

Type: Federal (USDA) | Status: Active (annual competition) | Deadline: FY2026 round closed June 30, 2026

USDA’s Distance Learning and Telemedicine grants help rural communities buy the equipment and software that connect students and teachers to learning at a distance, for example video-conferencing systems that let small rural districts share courses. The FY2026 round offered about $27 million for roughly 40 awards of $50,000 to $750,000, and a local match is required. Rural school districts are eligible to apply.

Type: Federal (through Illinois DoIT) | Status: Expired; renewal pending in Congress | Deadline: N/A

This federal program, run in Illinois by the Department of Innovation and Technology, funded cybersecurity improvements for state and local governments, including school districts, from 2022 to 2025. Its authorization expired in September 2025. The House has passed a bill to renew it through 2033, but the Senate has not yet acted. If it is renewed, watch for Illinois’ next round of local subawards.

Illinois State Funding Sources

Type: State | Status: Active | Deadline: Ongoing

The State of Illinois funds a secure K-12 broadband network, run by the Illinois Century Network, that is available at no cost to every Illinois public school district. Membership includes internet access, a last-mile connection and router, filtering, DDoS protection, and more. Joining can free up money that would otherwise go to internet service. See the LTC’s Technology & Connectivity Funding Support page for details.

Type: State | Status: Active | Deadline: Ongoing (annual)

Evidence-Based Funding is the state’s main school funding formula and districts decide how to spend it, so it is often the base for recurring technology costs such as device refresh cycles and software licenses. The FY2027 state budget, signed June 16, 2026, includes the full $350 million annual increase, bringing EBF to about $9.3 billion.

Type: State (loan) | Status: Active | Deadline: Applications June 1–December 1 each year, first come, first served

ISBE’s School Technology Revolving Loan Program offers three-year, low-interest loans (currently 2.635%) for technology hardware such as networks, classroom devices, and electrical work, as well as staff development on technology integration. Eligibility rotates by grade level: for FY2027, districts, charter schools, and recognized nonpublic schools serving grades 9–12 may apply.

Type: State | Status: No open round | Deadline: None announced

ISBE’s E-Rate State Matching Grant has helped districts pay for special construction projects, such as new fiber connections, by adding state funds to their E-Rate discounts. The most recent round was for FY2022 (E-Rate funding year 2021), and no new round has been announced. Districts planning fiber projects should still check with ISBE before filing, in case a round reopens.

Type: State (Illinois Treasurer) | Status: Varies | Deadline: Varies

The Technology Development Fund, managed by the Illinois State Treasurer, can make grants to Illinois schools to buy computers, upgrade technology, and support career and technical education from its investment earnings. The Treasurer publishes each year’s grants on its website, so check there for current opportunities.

Type: State (competitive) | Status: Active | Deadline: See ISBE

ISBE offers competitive Computer Science Equity Grant funding to expand computer science learning in K-12 schools, including teacher professional development and classroom materials and equipment for computer science instruction. School districts, charter schools, ROEs, ISCs, and higher education institutions have been eligible, with priority for students underrepresented in computer science and schools that lack accessible computer science coursework. Check ISBE’s funding opportunities page for the current application and deadline.

Type: State law | Status: Active | Deadline: N/A

Several Illinois laws affect how districts can spend on technology. For example, districts may use instructional materials funds for electronic textbooks and the equipment students need to use them, as long as every student has access at school and at home. The School Safety and Educational Improvement Block Grant, when funded, can also cover software and electronic textbooks. The LTC’s Legal Reference Guide collects these and other technology-related Illinois laws in one place.

Private and Partner Programs

Type: Private (T-Mobile) | Status: Active | Deadline: Ongoing

Since E-Rate no longer covers off-campus hotspots, Project 10Million is one of the main remaining ways to connect students at home. It gives eligible K-12 students a free hotspot and 200GB of data a year for five years. Families qualify through the National School Lunch Program, SNAP, the Community Eligibility Provision, Medicaid, or FDPIR, and districts can help enroll their students.

Type: Private (Verizon/Digital Promise) | Status: Active | Deadline: Varies (contact Digital Promise about eligibility)

Verizon Innovative Learning Schools provides Title I schools (at least 65% of students eligible for free or reduced-price lunch) with free laptops or tablets and four-year data plans for every student and teacher, along with professional development and a subsidy toward a technology coach. Its April 2026 cohort added 33 schools, bringing the program to 693 schools in 126 districts nationwide.

Type: Private/local | Status: Varies | Deadline: Varies

Teachers can request classroom technology through DonorsChoose, and many districts have a local education foundation. Community foundations, local businesses, and civic groups often fund classroom technology as well. These sources rarely cover large purchases, but they work well for pilots and single-classroom projects.

Type: Cost savings | Status: Active | Deadline: N/A

Every funding source goes further when the purchase price is lower. The LTC Purchasing Program offers Illinois schools competitively bid pricing on technology products and services, so districts can skip their own bid process and save on devices, software, and infrastructure.

No Cost Funding Support

The LTC team is ready to support your district as you plan projects, create budgets, and apply for funding – often at little-to-no cost.

Author

Mindy Fiscus
Director of Government Affairs and Purchasing, Learning Technology Center
View Profile: Mindy Fiscus

Details

For Administrators, Technology Leaders/Support
Grade Levels All Grades (K-12)

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