UNIVERSAL SERVICE FUND – SCHOOLS and LIBRARIES

The schools and libraries universal service support program, commonly known as the E-Rate program, helps eligible schools and libraries, and consortia (comprised of eligible schools and libraries) to obtain affordable broadband services, internal connections, and maintenance of internal connections. The E-Rate program was authorized by Congress as part of the Telecommunications Act of 1996 (the Telecommunications Act), and created by the Federal Communications Commission (FCC or Commission) in 1997 to, among other things, enhance, to the extent technically feasible and economically reasonable, access to advanced telecommunications and information services for all public and nonprofit elementary and secondary schools and libraries.

Schools must meet the statutory definition of elementary and secondary schools as defined in 20 U.S.C. § 7801(18) and 20 U.S.C. § 7801(38). Libraries must meet the statutory definition of library or library consortium found in the Library Services and Technology Act (LSTA) under 20 U.S.C. § 9122, and must be eligible for assistance from a state library administrative agency under that Act. In 2021, the Commission modified its definition of library to include Tribal libraries, clarifying that Tribal libraries are eligible for E-Rate support. Schools and libraries may not operate as for-profit businesses. Schools with endowments exceeding $50,000,000 are also not eligible.

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program.

2 CFR 200, Subpart E, Cost Principles does not apply to this program. Applicants prepare for competitive bidding, conduct competitive bidding by requesting bids for eligible equipment and services (FCC Form 470), evaluate bids and select a service provider. Applicants must select the most cost-effective service offering using price of the eligible equipment and services as the primary factor. Then, they submit a funding application (FCC Form 471). Funding requests that are approved will be awarded through a Funding Commitment Decision Letter (FCDL). The applicant that receives an FCDL must then notify USAC and certify that the billed entity and/or the eligible entities that it represents is receiving, or has received, service in the relevant funding year from its named service provider(s) (FCC Form 486). After equipment or services have been delivered, either the applicant or the service provider may initiate invoicing to receive funds by submitting a request for reimbursement (FCC Form 472 or FCC Form 474) to USAC.

USAC reviews each funding application to ensure compliance with program rules and procedures. The competitive bidding, program application and other required program processes described herein are governed by the FCC’s rules at 47 CFR Section 54.500 et. seq. and associated FCC Orders for the E-Rate program. After a submitted application undergoes an E-Rate program review, the applicant will receive a FCDL providing the total amount of approved support for each funding request or indicating that their funding request has been denied.

Other. The Commission has not set a specific date range for funding decisions, but has a program target to encourage efficient processing of program applications. The target is for USAC to issue funding commitments or denials for all “workable” funding requests by September 1st of each funding year. “Workable” means that a funding request is filed timely and is complete, with all necessary information, to enable a USAC reviewer to make the appropriate funding decision, and the applicant, provider, and any consultants are not subject to investigation, audit, or other similar reason for delay in a funding decision.