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What is E-rate?

E-rate (also known as the Universal Service Schools and Libraries Program) is a federal program that benefits schools and libraries throughout the country by making high-speed telecommunications affordable. The program allocates several billion dollars each year to this program, which is applied for by schools, librarians and consortia and distributed by the Universal Service Administrative Company (USAC), the organization responsible for administering the E-rate program, with oversight from the Federal Communications Commission.

E-Rate News

Hotspots are now eligible under E-Rate! Hotspots are a new addition to the E-Rate program, and libraries that are interested in loaning hotspots can benefit from this program.

Cybersecurity pilot is open. Our guidance for Maine libraries is to gather information about their cybersecurity status (what cybersecurity assets you have), any impactful cybersecurity events you have experienced) in preparation for future cybersecurity applications.

E-rate Topics

Most schools and public libraries are eligible to receive E-rate funding, and most equipment and services for delivering Internet service are eligible for the E-rate program, excepting computers. E-rate provides funding in yearly cycles, and the process for applying within a specific funding year has several steps:

  1. Complete the FCC Form 470, which initiates a competitive bidding process for requested services and equipment
  2. After a mandatory 28 day waiting period during which bidders are evaluated and selected, complete and certify the FCC Form 471 to describe the services and equipment that are being purchased
  3. On July 1st or after in a given funding year, completing the FCC Form 486 to confirm current CIPA status (compliant, becoming compliant, or that compliance is not required) and that contracted services have begun.
  4. After receiving and paying vendor for one-time or ongoing purchases, completing the FCC Form 472 (BEAR) to invoice for reimbursement on those costs.

E-rate funding is made available each year on a cyclical basis. Libraries that want to apply for funding should investigate their needs thoroughly so that when the next application funding window opens, they will be prepared to participate.

Libraries often prefer to work with a specific vendor for their technology needs. However, because the E-rate process demands that the vendor selected is done so through a bidding process that prioritizes the lowest cost, and because many vendors do not register as service providers in E-rate, an applicant should not assume that they will be able to select a vendor which which they have an established relationship.

The amount of reimbursement received for any E-rate application is based upon the relative poverty of the population served by the library (usually determined by National School Lunch Program data from the school district serving the same area as the library). In Maine, this is usually about 60-70% of eligible costs. It may be as low as 20% or as high as 90%. 

Federal funding often comes with requirements, and in the case of E-rate, one of those requirements is compliance with the Children's Internet Protection Act (CIPA). It's important that libraries who are receiving funds through E-rate through any source, including membership in the Maine School and Library Network (MSLN) confirm compliance with CIPA.

Having a technology protection measure (Internet filter) in place is one requirement, but another is an up-to-date internet safety policy that addresses several key points which has been discussed and documented in a public forum. The ability to unblock this filter for adult patrons upon request is another important part of CIPA compliance, and libraries that have not complied with such a request have been subjected to litigation.