What is E-rate?

This section provides some basic information about the E-rate program to help you become familiar with the program, without having to know its jargon.

The E-rate program provides discounts on certain services and products that are essential for classrooms and libraries to receive voice, video, and data communications. The amount of the discount depends on the level of poverty and location of the school or library receiving service. The discount ranges from 20% to 90% of the cost of eligible services.

To be eligible to receive discounts, a school or library must meet certain eligibility criteria. In general elementary and secondary schools are eligible to receive discounts--including many private schools and religious schools. Public libraries and library systems can receive E-rate discounts, provided they meet the eligibility requirements of libraries.

General E-rate Process Overview

The E-rate process can be outlined into the following steps:

Organizations Overseeing the E-rate Program

The Schools and Libraries Division, or the SLD. This group is responsible for the day-to-day administration of the program.
The parent organization of the SLD is the Universal Services Administrative Company or USAC. This company is responsible for administering all of the Universal Service programs and for collecting and disbursing E-rate funds.
The Federal Communications Commission is the executive branch agency that is responsible for oversight of the program. It sets the overall program policy and is the ultimate judge of appeals.

History of the E-rate Program

The E-rate program, officially known as Universal Service Schools and Libraries Discount Mechanism, was created as a part of the Telecommunications Act of 1996. In the act, a fourth Universal Service Fund program was established to help schools and libraries connect to the Internet.