FCC Order on E-Rate Category 2 Funds Published

Last week, the FCC released its long awaited order on the E-Rate category 2 formula. It was an expected decision, but not one that we wanted. The Commission agreed to make permanent the formula-based funding distribution method for category 2, which provides support for Wi-Fi and internal connections, but with a few significant tweaks. One major change to category 2 that the Commission will implement is increasing the floor funding level from $9,200 to $25,000 in order to persuade more small schools and libraries to apply. The Commission agreed to leave the school formula of $150 per pupil unchanged but also decided to establish a single formula for libraries rather than have different formulas for urban libraries. The Commission’s order will also allow for school district-wide and library-system wide budgeting which will allow them to allocate category 2 funding as they see fit. The order also clarified that the category 2 formula’s five year cycle will be fixed and not rolling, and that the next five year cycle will begin for all applicants in 2021. 2020 will be a transition year, with all schools and libraries eligible for pro-rated funding. Comments received by the Commission in this rule making did request that it make cyber security and wi-fi on school buses eligible for support but the final order did not agree to those changes. 

We are still awaiting the final order on the E-Rate cap.