What does E-Rate Cover?
Discounts provided by E-Rate are typically separated into two groups: Category One (C1 or Cat 1) and Category Two (C2 or Cat 2).
Services covered under Category One (C1) include primary internet access, internet connections between buildings, and construction required to obtain internet access. Category Two (C2) discounts cover equipment and services used inside the school buildings to get internet access to student devices. This includes routers, switches, and wireless access points. Category Two funds are budgeted per school over a five-year cycle; the current cycle runs from FY2026 through FY2030.
E-Rate does NOT cover end user devices, such as computers or tablets. Starting with funding year 2025, Wi-Fi hotspots used off campus and Wi-Fi on school buses are also no longer eligible.
Each year, the FCC adopts an Eligible Services list, after public comment, that sets which services are eligible for the coming funding year.
In recent years, the FCC refocused E-Rate from legacy telecommunications services to broadband internet connectivity, with a goal to significantly expand Wi-Fi access. These steps to modernize the program are helping E-Rate keep pace with the need for increased Internet access. They may also result in new types of services and items being covered under existing Category One and Category Two funds.
How can I apply for E-Rate?
Districts who wish to apply for E-Rate must follow a multi-step application process that includes identifying needs and bidding out for needed services.
The majority of this process is handled electronically within the E-Rate Productivity Center (EPC). This dashboard provides access to the necessary forms and communications with Universal Service Administrative Company (USAC), who manages the process for the FCC.
Individual forms walk applicants through a process of determining needed services, accepting bids, entering into contracts with providers and activation or completion of services.
Districts begin the process of application up to a year before services are confirmed and implemented. This lengthy process containing multiple forms and timelines requires districts to oversee the applications and implementation of services over multiple years.
How big of a discount can your district receive?
E-Rate discount levels are determined by district poverty level, primarily identified by eligibility in the National School Lunch Program (NSLP).
Using a formula, districts can obtain discounts of between 20% and 90% off requested services.
What E-Rate support is available in Illinois?
Many state departments of education provide staff, or State E-Rate Coordinators to help districts navigate the E-Rate application process.
Mindy Fiscus serves as one of Illinois’ State E-Rate Coordinators. Annually, she hosts workshops covering program updates and offering step-by-step guidance on navigating the program’s multiple forms. In addition, she offers one-on-one support for district leaders seeking customized funding solutions that incorporate E-Rate funds.
Mindy also participates in national organizations that support the E-Rate program such as the State E-Rate Coordinators Association (SECA) and State Educational Technology Directors Association (SETDA) E-Rate special interest group. Affiliation with these national organizations help ensure Illinois districts are kept up to speed with changes in the E-Rate environment.
What is the Illinois E-Rate Matching Grant?
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 ISBE has posted was for FY2022 (E-Rate funding year 2021), and no new round has been announced. Watch ISBE’s Broadband page for updates, and contact Mindy Fiscus if you are planning a fiber or special construction project.
