How E-Rate works.

Form 470 opens E-Rate competitive bidding by describing the services an applicant wants. Form 471 requests the actual funding commitment after the 28-day Form 470 window closes and a service provider is selected. They are sequential steps in the same E-Rate funding cycle.

E-Rate is the FCC's permanent Universal Service Fund program for on-campus connectivity at schools and libraries. The Emergency Connectivity Fund (ECF) was a separate, COVID-era FCC program that funded off-campus connectivity (home internet, hotspots, devices) for students, staff, and library patrons. ECF stopped accepting new funding requests after its final window in 2022 and is no longer an active funding source.

The E-Rate discount matrix is a 10-cell grid that determines how much of an applicant's eligible costs USAC will reimburse — between 20% and 90%. The percentage is based on the applicant's National School Lunch Program (NSLP) eligibility band and whether the applicant is classified as urban or rural.

The E-Rate program has an annual funding cap set by the FCC and indexed to inflation each year. For funding year 2025 the cap is approximately $4.94 billion. Category 1 (broadband and connectivity) requests are funded first; remaining funds flow to Category 2 (internal connections), where each applicant has a separate five-year per-student budget.

E-Rate is open to public and most non-profit private K-12 schools, public libraries, school districts, library systems, and consortia of eligible entities. For-profit schools, post-secondary institutions, and private schools with endowments above the FCC threshold are not eligible. Each eligible applicant is identified in USAC's system by a Billed Entity Number (BEN).

Category 2 — internal connections, managed internal broadband, and basic maintenance — is funded under a five-year per-student budget. Each applicant has a multiplier-based cap that resets every five funding years, and small entities receive a floor amount so very small schools and libraries are not shut out.

The E-Rate filing window is USAC's annual application period for Form 471 funding requests. It typically opens in mid-January and closes in late March for the following funding year (July 1–June 30). Form 470 filings are accepted year-round but must be in place at least 28 days before any contract is signed.

FY2025 was the third E-Rate funding year under the FCC's modernized Category 2 budget framework. This recap summarizes the public USAC commitment record: total committed dollars, the Category 1 vs Category 2 split, average discount rates, and how applicants broke down by entity type (schools, districts, libraries, consortia).