E-Rate

E-Rate discounts are based on the poverty level and urban/rural status of the school or library. The most disadvantaged applicants receive up to 90% discounts, meaning the vendor bills the full amount but USAC reimburses up to 90% — the applicant pays the remainder.

E-Rate eligible services include broadband internet access, networking equipment (switches, routers, cabling), Wi-Fi access points, firewalls, and basic maintenance of eligible equipment. Category 1 covers internet access and transport; Category 2 covers internal connections and managed internal broadband services.

The E-Rate application cycle runs annually. Schools and libraries post RFPs (called "Form 470s") on the EPC portal, vendors respond, and applicants select a vendor before filing their funding request (Form 471). Vendors who specialize in school networking and internet services can build significant recurring revenue through E-Rate.