E-Rate: Universal Service for Schools
For those who may have heard of the program only by name, "E-Rate” is actually shorthand for "Universal Service Program Schools and Libraries Program," and is one of four programs supported by the Universal Services Fund (USF). The program is administered by the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC), a not-for-profit corporation overseen by the Federal Communications Commission (FCC). Since 1998, the E-Rate has helped provide discounts of 20% to 90% on the cost of broadband services, and up to 85% for internal connections for broadband, broadband management services, and basic maintenance of broadband internal connections. Over 21,000 applicants and 4,100 vendors participate in the program, which has provided $4.15 billion annually (plus an index for inflation) to schools and libraries.The E-Rate program does not actually cover the cost of end-user equipment such as computers and chromebooks, instructional software, teacher training or any salaries of school technology staff. It is not a grant, but rather, represents the aforementioned discount on broadband services and connections. Funding is committed in a two-step application process: The first is through Form 470, which describes the services requested and starts a minimum 28-day competitive bidding period. The second step centers on Form 471, which describes the services ordered and the specific amount of the discounts requested. Eligible schools must meet the federal definition of an elementary or secondary school. Discounts are ultimately determined by economic need, and whether they meet the "rural" or "urban" classification.
How does the program work?
FCC Form 470 - Competitive Bidding Period
Filing of FCC Form 470 starts the mandatory 28-day period for accepting proposals based on the applicant’s request for proposal.
FCC Form 471 - Services Orders and Certification Form
The FCC sets the Form 471 filing window closing date which is usually in March prior to the funding year for discounts beginning in July. The Form 471 is the application for funding. Anything entered after the deadline are designated as “Out of Window” and are not processed.
Funding Commitment Decision Letter
USAC uses the FCDL to announce its decisions on funding requests.
Form 486 – Receipt of Service Confirmation Form
This notifies USAC that services have started and certifies that the applicant is in compliance with the Children;s Internet Protection Act (CIPA). This is the Form 479 that we as a consortia use.
Form 472 and 473
After services are received, USAC is invoiced for the discounted funds by either the applicant (472) or the service supplier (473). This is where the vendors requests discount funding directly from USAC.
Form 498
Both applicants and service providers must complete FCC Form 498 to register their organizations with USAC. All payments are done through EFT. Since most (except SSBA) are consortia applications, the CNYRIC handles the notifies USAC that services have started and certifies that the applicant is in compliance with the Children;s Internet Protection Act (CIPA). This is the Form 479 that we as a consortia use.
Categories of Service
Category 1Services needed to support broadband connectivity to schools. This is your WAN circuits and your internal district connections from your NOC to individual buildings within your district. |
Category 2Discounts for the internal connections equipment or services necessary to bring broadband into, and provide it throughout your districts. |
Special RulesAsset Register – Asset and Inventory records for all E-Rate equipment must be maintained to enable location verification for 10 years. |
E-Rate Discount Matrix
| Income | Category 1 | Category 2 | ||
| Measured by % of Students eligible for the National School Lunch Program | Urban Discount |
Rural Discount |
Urban Discount |
Rural Discount |
| Less than 1% | 20% | 25% | 20% | 25% |
| 1% to 19% | 40% | 50% | 40% | 50% |
| 20% to 34% | 50% | 60% | 50% | 60% |
| 35% to 49% | 60% | 70% | 60% | 70% |
| 50% to 74% | 80% | 80% | 80% | 80% |
| 75% to 100% | 90% | 90% | 85% | 85% |
What the CNYRIC Needs From You
2024-2025 E-Rate Application Worksheet (Category 2)We need this in order to complete our request for competitive bids on all E-Rate items. We take all of our districts requests and put them together to get the best possible pricing from our service providers. This combined equipment requests are put into a Form 470. We have to post this on the FCC website for 28 days before we can begin any applications. This form is attached.
CIPA – Form 479
This form requires the Superintendent of Schools signature and states that you are in compliance with the Children’s Internet Protection Act. Please check Item Number 6A and sign and date. The form is attached.
Letter of Agency
This establishes that you have authorized us to submit, certify and invoice E-rate on your behalf. This can be copied and pasted onto your school letterhead. The form is attached.
E-Rate is Here to Help!
Your 2021-2026 Budget
This includes your estimated Category 2 budget for 2021 through 2025. This is your five year budget based upon your discount percentage and your student population. This five year period – we do not have to break equipment down by building – only for the entire district.
Category 2 Eligible Equipment Listing
This form gives you a listing of eligible equipment for E-rate.
The CNYRIC E-Rate service is available to handle every step of the E-Rate process. From initial planning, completive bidding process, funding approval to project proposal and project management. We also will set up Category 2 funding to enable first payment by service providers. Our goal to to ensure that all of our schools receive every last dollar that they can from this program.
Deadlines: Please submit your forms for the 2024-25 fiscal year (7/1/2024 – 6/30/2025) as soon as possible from the date you receive the E-Rate Packet. The packet contains the CIPA, LOA (Letter of Agency), Category 2 worksheet (this document asks you to enter descriptions of what you would like to have posted to the E-Rate Portal), Category 2 Budget and Discount (this document will show your original budget amount, pending applications, funded applications and your available budget) and Required Documents and Information Checklist for 2024-2025). We hope to have the E-Rate Packets sent out in late October.
