The schools and libraries that rely on the federal E-Rate program have new opportunities — and potentially face new challenges.
On July 18, 2024, the FCC voted to expand the list of services that qualify for the E-Rate program. Specifically, the agency extended the discount program for Internet services beyond brick-and-mortar facilities. Schools and libraries that qualify may receive funding to set up Wi-Fi hotspots across their communities. The program expansion recognizes the reality that learning occurs outside of classrooms and libraries.
At the same time, the E-Rate program faces a potentially devastating setback. On July 24, 2024, the Fifth Circuit Court of Appeals ruled that the mechanism for funding the FCC’s Universal Services Fund (USF) is unconstitutional. E-Rate funding comes from “universal service” surcharges on telephone bills. The E-Rate program remains in effect as the FCC is expected to appeal the ruling.
How can schools and libraries navigate this uncertain climate? The right technology partner can help.
Fifth Circuit Decision Creates Doubt
Established in 1996 to help schools and libraries obtain affordable telecommunications services, the E-Rate program has been enormously successful. When the program was implemented in 1997, just 14 percent of K-12 classrooms had Internet access. Today, virtually all schools and libraries have Internet connectivity.
Congress gave the FCC the authority to administer the USF. Now, however, almost 30 years after its implementation, the Fifth Circuit has gone out of its way to label the fund a “misbegotten tax.” In a 9-7 decision, the court ruled that the FCC delegated taxing power to a private company, the Universal Service Administrative Company (USAC). Other circuit courts have upheld the constitutionality of delegating oversight of the USF to the USAC. The Fifth Circuit decision is broad, affecting not only E-Rate but all programs funded by the USF, including the Rural Health Care Support Mechanism.
If the FCC appeals the decision, the case will take at least three years to resolve, legal experts say. In the meantime, funds are available to help schools and libraries obtain needed technology.
Taking Advantage of E-Rate
When first established, the E-Rate program emphasized voice communications. Today, the emphasis is on high-speed Internet connectivity (Category 1 services). E-Rate can also help eligible schools and libraries upgrade and maintain their technology environments to enable the connectivity needed for distance learning and innovative learning technologies (Category 2 services).
Demand for E-Rate support consistently exceeds available funding. As a result, funds are allocated first to the highest poverty schools and libraries. Still, the program is widely underutilized. Many eligible schools and libraries believe that E-Rate will only pay for connectivity. Additionally, more than a third of the available funding for the 2020-2025 Category 2 funding cycle has been used to date.
E-Rate provides educational institutions with up to 90 percent discounts on Internet connectivity. Funds can be used to replace, upgrade or repair cabling infrastructure, networking equipment, security appliances and more. They can also be used for network monitoring and management services. In recent years, the program has focused heavily on Wi-Fi solutions and services, which now extend to establishing Wi-Fi hotspots beyond physical facilities.
How Cerium Can Help
E-Rate funding can seem complex, but Cerium is dedicated to making it simple and accessible. Our expert team can help ensure that schools and libraries maximize their funding and save up to 90 percent on advanced Category 2 network solutions. This starts with establishing a technology lifecycle that leverages E-Rate and other funding resources. We then help schools and libraries select solutions that meet their specific needs, and navigate changes in software licensing and hardware capabilities.
Whether you have already received a funding commitment or are planning your E-Rate service requests for FY2025, it’s critical to have a technology strategy that maximizes the benefits of the E-Rate program. As an experienced E-Rate provider, Cerium can help you develop a plan for implementing, upgrading or extending your network to ensure that every student has secure and reliable Internet access.
