Emergency Connectivity Fund Program

In section 7402 of the American Rescue Plan Act (Act), Congress established a $7.171 billion Emergency Connectivity Fund (ECF) in the U.S. Treasury and directed the Federal Communications Commission (FCC or Commission) not later than 60 days after enactment of the Act to promulgate rules providing for the distribution of ECF support to eligible schools and libraries for the purchase of eligible equipment and/or advanced telecommunications and information services for use by students, school staff, and library patrons at locations including locations other than a school or library. On May 10, 2021, the FCC adopted a Report and Order entitled Establishing the Emergency Connectivity Fund to Close the Homework Gap, WC Docket No. 21-93, Report and Order, FCC 21-58 (2021) (Report and Order). The Report and Order established the Emergency Connectivity Fund Program (ECF Program), which is funded through the ECF. The ECF Program rules became effective upon publication of the Report and Order in the Federal Register on May 28, 2021. ECF Program support was first made available to eligible schools and libraries applying for funds for the purchases of eligible equipment, including Wi-Fi hotspots, modems, routers, and connected devices, as well as advanced telecommunications and information services, to meet the remote learning needs of students, school staff, and library patrons who would otherwise lack access to connected devices and/or broadband connections sufficient to engage in remote learning during the 2021-2022 school year. On April 28, 2022, the FCC opened the third and final application filing window, during which eligible schools and libraries were able to submit requests for funding to purchase eligible equipment and up to 12 months of recurring services to be provided between July 1, 2022, and December 31, 2023 for students, school staff, and library patrons with unmet needs. Because demand exceeded available funds, applications received during the third filing window will be prioritized to fund schools and libraries with the greatest need first, with a preference for schools and libraries located in rural areas pursuant to the Commission’s rules.

All schools, libraries, and consortia of schools and libraries that are eligible for support under the schools and libraries universal service support mechanism (also known as the E-Rate Program) are eligible to request and receive support through the ECF Program. The Program uses the same definitions of “elementary school,” “secondary school,” “library,” and “library consortium” used in the E-Rate rules. Consistent with the Library Services and Technology Act (LSTA), Tribal libraries which are by statute eligible for support from state library administrative agencies under the LSTA, are eligible for support from the Fund.

To clarify the statement above, only Subpart A- Acronyms and Definitions, Subpart B- General Provisions, Subparts C-D (specifically 2 CFR § 200.203 - Requirement to provide public notice of Federal financial assistance programs; 2 CFR § 200.303 Internal controls; and 2 CFR §§ 200.331-333 Subrecipient Monitoring and Management); and Subpart F - Audit Requirements apply to this program. The first and second application filing windows allowed eligible schools and libraries to submit requests for funding to purchase eligible equipment and services received or delivered between July 1, 2021 and June 30, 2022. For the third application filing window, eligible schools and libraries were able to submit requests for funding to purchase eligible equipment and up to 12 months of recurring services to be provided between July 1, 2022, and December 31, 2023. There is not a separate FCC-mandated competitive bidding process required for applicants prior to submitting applications for funding. However, in their applications, applicants must certify that they have complied with all applicable local, state, and Tribal procurement requirements with respect to both previous purchases and future purchases and contracts. This requires schools and libraries that are not subject to public procurement rules to follow their own procurement process and rules, such as those that may be included in a written charter. Each applicant seeking funding is required to file all required forms, information, and certifications in the ECF Program Portal. The Act provides that USAC, the administrator of all of the FCC’s Universal Service Fund (USF) programs, is to administer the regulations adopted pursuant to section 7402, under the oversight of the Commission.

After their applications undergo an ECF Program review, applicants will receive Funding Commitment Decision Letters providing the amount of their funding commitments or denying their applications. Approved funding decisions authorize 100 percent reimbursement of the reasonable costs of eligible services and equipment up to caps on certain equipment or services named in the FCC’s Report and Order. The FCC adopted per-device caps based on a reasonable support amount, up to which an applicant may receive support. For connected devices, the reasonable, maximum support amount is $400 per device. The FCC adopted $250 as the reasonable, maximum reasonable support amount for a Wi-Fi hotspot provided to a student, school staff member, or library patron, based on advertised costs for Wi-Fi hotspots. If demand should exceed available funds, the FCC will prioritize requests for that application filing window based on applicants’ E-Rate Program discount matrix for category one services, adjusted to provide a five percent boost for rural schools and libraries. The E-Rate Program discount matrix governs the amount of funding eligible schools, libraries, and consortia are eligible to receive based on the percent of students in the school district eligible for the National Free and Reduced School Lunch Program and whether the entity is located in a rural or urban area. Those schools and libraries entitled to a higher discount will be prioritized and receive funding ahead of those entitled to a lower discount rate in the event there is insufficient funding to meet demand.

The FCC has not set a specific date range for funding decisions but has set ECF Program targets to encourage efficient distribution of funding. It set targets for USAC to issue funding decision commitment letters for 50% of the workable applications within 60 days of the close of the first application window and 70% of the workable applications within 100 days of the close of the first application filing window. The term “workable application” refers to a funding request that is filed timely and is complete, with all necessary information, to enable a reviewer to make the appropriate funding decision, and the associated applicant, provider, and any consultants are not subject to investigation, audit, or other similar reason for delay in a funding decision. This is consistent with the way the term is currently used in the E-Rate Program. The Commission issued the first wave of ECF Program funding commitments for over $1.2 billion on September 24, 2021. The Commission has continued to issue ECF Program commitment waves on a rolling basis and will continue to do so until all funding commitment decisions are made for the applications that can be funded, in light of demand exceeding available funds during the third application filing window.