Are switches Category 1 or Category 2?

Switches that operate inside a school or library are Category 2 (Internal Connections). Switches owned by a service provider as part of delivering internet access can be Category 1.

Does the Category 2 budget apply to switches?

Yes. Switch costs draw against the applicant's five-year Category 2 budget. Once the C2 budget is exhausted in a five-year cycle, additional switch funding is not available until the next budget cycle.

Are PoE switches treated differently?

No — PoE-capable switches are funded the same as standard switches. The PoE function is an eligible internal-connections capability.

Category 2 · Product line

Network Switches in E-Rate

Quick answer

Network switches are eligible Internal Connections under E-Rate Category 2. They're funded against the applicant's five-year C2 budget at the applicable discount rate, with cost allocation required for any non-eligible features (e.g., advanced licensing layers used outside the school).

How switches are classified in E-Rate

Switches that distribute network traffic inside a school or library are Internal Connections under Category 2. This includes core switches, distribution switches, access switches, PoE-capable switches, and stackable chassis configurations.

Switches that connect a school's network to an outside service provider — for example, demarcation hardware on a fiber line — may instead fall under Category 1 if they're owned and operated by the service provider. The Eligible Services List for the funding year is authoritative.

Common cost-allocation issues

Switches are usually fully eligible. Cost allocation typically only applies to advanced licensing features that go beyond core switching (e.g., advanced security or analytics modules used outside the eligible school environment).

Power over Ethernet (PoE) power budgets, stacking modules, transceivers, and structured cabling that connects to switches are eligible alongside the switch itself.

FAQ

Common questions

Are switches Category 1 or Category 2?: Switches that operate inside a school or library are Category 2 (Internal Connections). Switches owned by a service provider as part of delivering internet access can be Category 1.
Does the Category 2 budget apply to switches?: Yes. Switch costs draw against the applicant's five-year Category 2 budget. Once the C2 budget is exhausted in a five-year cycle, additional switch funding is not available until the next budget cycle.
Are PoE switches treated differently?: No — PoE-capable switches are funded the same as standard switches. The PoE function is an eligible internal-connections capability.

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This page summarizes publicly available FCC and USAC guidance on E-Rate eligibility for educational purposes. Eligibility rules and cost-allocation requirements change over time and by funding year; verify the current Eligible Services List with USAC before relying on this for a specific filing. ERateSignal is not affiliated with, endorsed by, or sponsored by USAC, the FCC, or the U.S. Government.