Service Categories & Priorities

The four E-rate eligible services categories are divided into what the FCC calls “Priority 1” and “Priority 2” services (“P1” and “P2”). USAC approves funding for P1 services (Telecommunications and Internet Access) first. Afterwards, if there is money remaining in the queue, USAC will begin issuing funding commitments for discounts on P2 (internal connections and basic maintenance) requests. P2 discounts are applied to the applicants with the highest discount percentage and fund down to the lower discount levels until the funds are depleted.

The discount rate that the SLD will be able to fund for P2 services is known as the discount rate threshold level. The below chart reflects the final discount threshold for each Funding Year.

Priority 2 Funding Discount Threshold by Funding Year