E-Rate

E-Rate General Information

E-Rate is the single largest technology related funding available to Libraries and Schools focusing on the most urgent need—closing the Wi-Fi gap and level the playing field for education and learning. The Federal Communications Commission (FCC) has made available $3.9 Billion to the E-Rate Program on an annual recurring basis. Reimbursements are based on the National School Lunch Program percentage and can be as high as 90 percent. E-Rate is administered by the Universal Service Administrative Company (USAC), a not-for-profit administrator of the Universal Service Fund through the FCC. The program which started in 1998 was modernized and streamlined. Click here to read more about E-rate Modernization.

Arizona State Library together with Arizona Department of Education is working with libraries and schools to make the most of the E-Rate dollars available to them. Arizona Schools and Libraries have received $ 1.78 Billion from 1998 to 2023. Including up to 10% additional funding for Broadband buildout, if it is matched by State funds.

Arizona State Broadband STRATEGIC PLAN

Governor Katie Hobbs announced ConnectAllAZ, a new initiative to ensure all Arizonans have access to information about statewide broadband programs. ConnectAllAZ aims to provide a complete snapshot of broadband expansion initiatives like the Broadband Equity, Access Deployment (BEAD) Program, Digital Equity, Arizona Broadband Development Grant Program, and more, all under one initiative across the state.

ConnectAllAZ.com provides Arizona residents information about all state broadband programs, community engagement opportunities, and resources like webinars and action plans. The website also features the new Arizona State Broadband Map, a tool that visually identifies unserved and underserved communities and shows internet access for every address across the state. This resource supports state, local, and federal efforts to address gaps and advance new connections.

Arizona State Broadband Initiative

Arizona State Library together with Arizona Department of Education is working with libraries and schools to make the most of the E-Rate dollars available to them. In addition to the discounts that they are already eligible for, FCC has provided up to 10% additional funding for Broadband buildout, provided it is matched by State funds.

Impact of E-rate in Arizona

Since the program began in 1998, Arizona schools and libraries have received more than $1.78 Billion in E-rate reimbursements. Because of the reimbursements, public libraries and schools across Arizona have been able to upgrade their bandwidth, pay the recurring cost of internet access as well as upgrade wiring and internal connections. The increased bandwidth has enabled them to provide all kinds of programs, including job searching, GED testing, college prep, and code clubs, virtual story-times, Telehealth appointment.  The extra bandwidth can also make it easier for patrons to access the internet with their own devices in the library. If you have an impact story to share, please send it to the E-rate Administrator.

Getting Started

Trainings and Presentations

Services Eligible for E-rate Reimbursements  

Equipment and services eligible for E-Rate program discounts are divided into Category One (C1) and Category Two (C2) Eligible Services List - Universal Service Administrative Company.

Category One: Category 1 is for Internet access. Please check the eligible services list to see which category the service you request belongs. While filing Form 470 please choose the correct service from the dropdown menu. The highest discount you are eligible for is 90% based on the school lunch program of the school district that your library is in.

Category Two: E-Rate Category Two is Internal Connections, Managed Internal Broadband Services, and Basic Maintenance of Internal Connections. The highest discount level for Category Two services is 85 percent. This is the final year of the 5-year cycle. Each library or library system has a five-year, pre-discount budget for those equipment and services based on the number of students in the school district or the number of square feet in the library system. There is no budget for C1 services. The first five-year C2 budget funding cycle began in FY 2021 and runs through FY 2025. The FY2021-FY2025 Category Two (C2) Budget Management Guide can show you how to check your available C2 funding, determine if you have any unused commitments and use that funding  for FY2025.

Are Master Contracts available?  Yes.

CATEGORY 1 Master Contracts are put together by the Arizona State Procurement Office.

CATEGORY 2 Master Contracts are put together by the Mohave Educational Service Cooperative.

Using State Master Contracts: Libraries and Schools may use state master contract vendors by requesting quotes from at least 3 of the vendors listed and performing a "mini-bid" analysis. Please do your due diligence and get the best service for the best price based on your individual circumstances.

Advantage to purchasing via State Contract: You do not have to file your own RFPs or file your own Form 470 and wait 28 days. You may cancel after 1 year without penalty. You get the best terms and conditions possible.

Contact your state E-rate Administrator if you have questions or a PIA inquiry.

Five-Year C2 Funding Cycle FY 2021-25

The FCC’s Category 2 Report and Order (FCC 19-117) established the rules, C2 budget multipliers, and the funding floor for the fixed, five-year funding cycles. The FCC’s 2023 Tribal Order (DA 23-56) provided a new C2 funding floor for Tribal libraries only.

Library applicants must validate their library square footage when applying for C2 funding. 

C2 Budget Multipliers and the Funding Floor

The C2 budget multipliers and the funding floor for each five-year funding cycle are set once at the beginning of the cycle and apply to the entire cycle.

For the FY2021-FY2025 cycle:
Applicants calculate their C2 budget using their student counts (in the case of a school or district) or library square footage (in the case of a library or system) and the respective multiplier.  

  • The school multiplier is $167.00 per student.
  • The library multiplier is $4.50 per square foot for all libraries.
  • The funding floor is $25,000 for all schools and libraries, except for Tribal libraries, which have a $55,000 funding floor.

A library with less than 5556 square feet ($4.50/square foot * 5555 square feet = $24,997.50) receives the funding floor: $25,000.

A Tribal library with less than 12,223 square feet ($4.50/square foot * 12,222 square feet = $54,999), this library receives the Tribal library funding floor: $55,000.

Calculating Your C2 Budget: Libraries shall provide the total area for all floors, in square feet, of each library outlet separately, including all areas enclosed by the outer walls of the library outlet and occupied by the library, including those areas off-limits to the public. Outdoor space used for programming cannot be included in this C2 calculation.

Most library systems will add the square footage of each of their library branches and then multiply the total by the C2 budget cycle library multiplier.

Estimates for Buildings Under Construction

Libraries: Library systems can provide planned square footage for buildings under construction that will open during the funding year.

Transferring Equipment: School districts and library systems can transfer equipment between schools within a district and libraries within a system. Starting As of July 1, 2021, applicants may transfer purchased equipment regardless of the funding year of the equipment purchase. Applicants are also no longer required to notify USAC of the equipment transfers, but both the transferor and recipient must maintain detailed records documenting the transfer and the reason for the transfer for five years.

Document Retention: Schools, libraries, and consortia are still required to maintain asset and inventory records of equipment purchased and the actual locations of such equipment for at least 10 years after purchase.

C2 Budget Tool for FY2021-FY2025

The Category Two (C2) budget tool provides data on the FY 2021-FY 2025 C2 budget cycle. It is available on the Tools page along with a video on how to use the tool and a glossary of terms.

For assistance contact your State E-rate Administrator.